Week 5 Discussion 1

The thought of opportunity cost is crucial to the economist’s perspective of costs. Since assets are rare in respect to needs, 1 the utilization of assets in restricted counteracts their utilization in different ways. The opportunity cost of putting resources into a health awareness mediation is best measured by the health profits (life years spared, quality balanced life years (QALYS) picked up that could have been accomplished had the cash been used on the following best elective intercession or human services programme.

Opportunity cost might be surveyed straightforwardly with cost viability or cost utility examines. The point when two or more intercessions are looked at cost utility adequacy examination makes the opportunity cost of the elective employments of assets express. Cost viability proportions, that is the £/outcome of diverse intercessions, empower opportunity costs of every mediation to be looked at comparison.


Niven, Paul R. (2006) “Balanced Scorecard. Step-by-step. Maximizing Performance and Maintaining Results”

Norreklit H. (2000), The balance on the Balanced Scorecard – a critical analysis of some of its assumptions, Management Accounting Research, 11, pp. 65–88.

Papalexandris, A., Ioannou, G. and Prastacos, G.P. (2004) Implementing the Balanced Scorecard in Greece: a software firm’s experience, Long Range Planning, 37(4), 347-362

Week 5 Discussion 2

Transfer pricing is a benefit distribution strategy (the other being model division) used to property a multinational partnership’s net benefit (or misfortune) before charge to nations where it works together. Since nations encroach diverse enterprise charge rates, the organization’s objective are to distribute a greater amount of the worldwide benefit to lower impose nations, in this manner minimizing the generally speaking assessments paid. Numerous nations’ encroachment, punishments on enterprises provided that they consider that they are constantly denied of assessable benefit.

Transfer pricing brings about charges made between regulated (or identified) lawful substances i.e. inside the same bunch. Lawful substances recognized under the control of a solitary partnership incorporate limbs and organizations that are wholly or greater part possessed at last by the guardian company. Certain wards think about substances to be under regular control in the event that they impart relatives on their sheets of executives.

It alludes to the setting, dissection, documentation, and change of charges made between identified gatherings for products, administrations, or utilization of property (counting elusive property). Transfer prices around parts of an endeavour may be utilized to reflect allotment of assets around such segments, or for different purposes. OECD Transfer Pricing Guidelines state, “Transfer prices are noteworthy for both citizens and charge organizations since they figure out in vast part the pay and overheads, and thusly assessable benefits, of charted ventures in distinctive assessment wards


Sharife, Khadija (2011-06-18). “‘Transparency’ hides Zambia’s lost billions”, Al-Jazeera

Kristina Froberg and Attiya Waris (2011), “Introduction”, Bringing the billions back: How Africa and Europe can end illicit capital flight. Stockholm: Forum Syd Forlag

Mathiason, Nick (2007-01-21). “Western bankers and lawyers ‘rob Africa of $150bn every year'”, The Guardian (London)

Week 6 Discussion 1

At Hampton Freeze, management accepts that a completion inventory equivalent to 20% of the following quarter’s deals strikes the suitable offset. Illustration holds the production plan for Hampton Freeze. The main push in the production plan holds the planned deals, which have been taken specifically from the bargains plan (see deals plan page). The aggregate needs for the first quarter are dead set by including the rationed offers of 10,000 cases for the quarter and the sought finish inventory of 6,000 cases. The closure inventory is expected to give some pad on the off chance that issues advance in production or bargains expand suddenly. Since the rationed bargains for the second quarter are 30,000 cases and management might like the closure inventory in every quarter to 20% of the accompanying quarter’s deals, the coveted consummation inventory is 6,000 cases (20% of 30,000 cases). Hence, the aggregate needs for the first quarter are 16,000 cases. On the other hand, since the organization as of recently has 2,000 cases in starting inventory, just 14,000 cases need to be prepared in first quarter.


Ralph S. Singleton (1996), Budgeting

Bastian Clevé (2nd Ed, 2000), Production Management

Production Handbook (3rd Ed, 2001), The Complete Film

Robert J. Koster (1997), The On Production Budget Book 

Linda Stradling (2010), Methuen, Production Management for TV and Film, The Professional’s Guide 

Week 6 Discussion 2

A flexible budget is a budget that modifies or flexes for progressions in the volume of movement. The flexible budget is more modern and suitable than a static budget, which stays at one sum paying little heed to the volume of action.

Accept that a maker establishes that its cost of power and supplies for the processing plant are roughly $10 for every machine hour (MH). It additionally realizes that the processing plant supervision, devaluation, and other altered expenses are pretty nearly $40,000 for every month. Ordinarily, the production gear works between 4,000 and 7,000 hours for every month. In view of this data, the flexible budget for every month might be $40,000 + $10 for every MH.

Notwithstanding we should represent the flexible budget by utilizing some information. Assuming that the production supplies are obliged to work for 5,000 hours throughout January, the flexible budget for January will be $90,000 ($40,000 settled + $10 x 5,000 MH). Provided that the supplies is obliged to work in February for 6,300 hours, then the flexible budget for February will be $103,000 ($40,000 altered + $10 x 6,300 MH). Assuming that March requires just 4,100 machine hours, the flexible budget for March will be $81,000 ($40,000 settled + $10 x 4,100 MH


Smith, Julia (2007), Handbook of Management Accounting, Fourth Edition; Oxford, CIMA Publishing; p. 140

Drury, Colin (2008), Management and Cost Accounting, 7th Edition; London, Engage Learning, p. 363

Drury, Colin (2008), Management and Cost Accounting, 7th Edition; London, Cengage Learning, p. 371

Bragg, Steven (2001), Just-in-time accounting: how to decrease costs and increase efficiency; New York: Wiley Publishing, p. 276

Welch, Jack (2005), Winning; New York: Harper Business, p. 189

Week 7 Discussion 1

There are not many arrangements that turn out precisely as arranged. Indeed, when the generally speaking destinations of the arrangement are accomplished, some, if not all segments of the execution will have changed from the sub-plans or norms that make up the in general picture. For instance, a football group might win a critical amusement, as arranged, however inside the group execution there may be numerous viewpoints that the supervisor will examine throughout and after the match so execution could be enhanced for next time. As good to go, exceptional indicates need be supported, less positive angles need to be talked about and rectified. In a round of football, a side might have won a high number of corner kicks, however surrendered an excessive amount of free-breaks in protecting. There is small to be picked up for the following match in the event that we don’t consider the last execution in part.

Variance analysis furnishes a structure for business directors to breakdown the by and large execution of an organisation, with the intention that every singular component of the business could be secluded and examined thusly.


Sullivan, Arthur; Steven M. Sheffrin (2003), Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 502, ISBN 0-13-063085-3

Cliche, P. (2012), “Budget,” in L. Côté and J.-F. Savard (eds.), Encyclopedic Dictionary of Public Administration

Week 7 Discussion 2

The characteristics for the balanced scorecard and its subordinates is the presentation of a mixture of money related and non-money related measures each one contrasted with a “target” worth inside a solitary brief report. The report is not intended to be a trade for conventional money related or operational reports yet a concise synopsis that catches the data most pertinent to those understanding it. It is the strategy by which this ‘most pertinent’ data is resolved (i.e., the configuration methodologies used to select the substance) that most separates the different forms of the apparatus available for use. The balanced scorecard likewise offers light to the organization’s vision and mission. These two components should dependably be alluded to when planning a balance scorecard.


Kaplan, R. S., & Norton, D. P. (2004), Strategy maps: Converting intangible assets into tangible outcomes. Boston: Harvard Business School Press.

Kurtzman J (1997) “Is your company off course? Now you can find out why”, Fortune Feb 17 pp128– 30

Niven, Paul R. (2006) “Balanced Scorecard. Step-by-step. Maximizing Performance and Maintaining Results”

Per Nikolaj Bukh & Teemu Malmi “Re-Examining the Cause-and-Effect Principle of the Balanced Scorecard”

Norreklit H. (2000), The balance on the Balanced Scorecard – a critical analysis of some of its assumptions, Management Accounting Research, 11, pp. 65–88.

Papalexandris, A., Ioannou, G. and Prastacos, G.P. (2004) Implementing the Balanced Scorecard in Greece: a software firm’s experience, Long Range Planning, 37(4), 347-362