11Sep 2018 by Reese Bannister

Different Levels of Management in the Form of a Pyramid

Accounting
Different Levels of Management in the Form of a Pyramid – Essay!As the organizations grow larger and more complex, they usually develop several levels of managerial positions, forming a hierarchy of superior and subordinate reporting relationships. Traditionally, there are three managerial levels which are usually depicted in the form of a hierarchical pyramid.The total number of personnel found at each level decreases as the management level increases up the pyramid. The largest number of people in the organization is at the lower organizational level, at the bottom of the pyramid and these people are operating in a non-managerial capacity. ADVERTISEMENTS: This group consists of individual contributors who are simply the employees who work under the guidance of their supervisors. These levels, in the form of a pyramid are shown as…
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10Sep 2018 by Reese Bannister

Factors of the Task Environment that Affect an Organization – Essay

Accounting
Task environment consists of those industry factors which are external to the firm but have a direct and specific impact upon the organization and are in turn affected by the organization’s operations.These factors are shown in the following diagram.These factors are explained in more detail as follows. 1. Competition: ADVERTISEMENTS: Competition is the basic element of a free enterprise system. The interests of both the organization and the customers are better served when choices in the market are available. Competition encourages progress and product-developments. It forces organizations to be more innovative and productive. For example, in 1955, Harley- Davidson held nearly 70% of the U.S. motorcycle market, but by 1983, this share had been reduced to only 3.7%.This steep decline can be attributed to aggressive competition by Japanese companies such…
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10Sep 2018 by Reese Bannister

5 Most Important Differences between Sub-Agent and Substituted Agent

Business
5 Most Important Differences between Sub-agent and Substituted Agent are given below: Sub-Agent: 1. Sub-agent is appointed by an agent to assist him in business of agency. ADVERTISEMENTS: 2. There is no privities of contract between the sub-agent and the principal.3. A principal cannot sue directly the sub- agent except when he was properly appointed and he commits wilful wrong or fraud.4. The sub-agent works under the control and direction of the agent.5. The agent is responsible to the principal and the third party for the acts of the sub-agent. Substituted Agent: ADVERTISEMENTS: 1. Substituted agent is named by the agent, but appointed by the principal.2. There is privities of contract between the principal and the substituted agent.3. A principal can directly sue or sued upon by, the substituted agent.4.…
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10Sep 2018 by Reese Bannister

14 Major Differences between Public Corporation and Government Departmental Undertaking

Management
14 Major Differences between Public Corporation and Government Departmental Undertaking are listed below: Public Corporation: 1. It is an instrument of the Government. It is also called statutory corporation. ADVERTISEMENTS: 2. It is a purely commercial.3. It is an autonomous body.4. Examples:ONGC, RTC, LIC, FCI, Damodar Valley Corporation, Air India, etc ADVERTISEMENTS: 5. There are two different basic concepts in the management of public corporations, viz. autonomy and accountability.6. The structure of the public corporation cannot be amended by Government itself. The structure of the public corporation can be altered only by Parliament.7. It has its own independent administration.8. It is a separate juristic person. It can sue and can be sued. ADVERTISEMENTS: 9. For tortious liability, it is held liable. Article 300 does not apply.10. Section 123 (Privilege of…
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09Sep 2018 by Reese Bannister

Useful Notes on the “Law of Supply”

Industry
The law of supply shows a direct relationship between price and supply of a commodity. The law states that as the price of commodity increases, the quantity of the commodity supplied per unit of time increases and vice-versa, assuming all other factors influencing supply remain unchanged. In this statement, change in price is the cause and change in supply is the effect. Thus, price rise leads to supply rise and not otherwise.The relationship between price and supply can be shown by drawing the supply curve. The supply curve for a product depicts the direct relation between the price of that commodity and the quantity, producers wish to supply at that price. ADVERTISEMENTS: This curve can be drawn by preparing supply schedule, which is a tabular statement that gives different prices…
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09Sep 2018 by Reese Bannister

5 Important Techniques Used in Capital Budgeting–Notes

Accounting
A number of capital budgeting techniques that are used in practice are (Fig.24.1): 1. Pay Back Period Method: The payback period is the length of time required to recover the initial cash outlay of the project. It can be calculated as follows: ADVERTISEMENTS: Payback Period = Cash Outlay/Annual cash inflowThe method can be understood as follows:If a project involves a cash outlay of Rs. 1,50,000 and Rs. 2,00,000 in the first, second and third and fourth years respectively. It’s payback period is 4 years because the sum of cash inflows during 4 years is equal to the initial outlay. When the annual cash inflow is a constant sum, the payback period is simply the initial outlay divided by the annual cash inflows.For example, a project which has an initial cash…
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09Sep 2018 by Reese Bannister

What are the different forms used to maintain Stock Records?

Accounting
Stock records are maintained in the following different forms:1. Bin card2. Stores ledger ADVERTISEMENTS: 3. Stock identification card4. Materials received note5. Materials requisition slip6. Materials returned slip ADVERTISEMENTS: 7. Materials transfer note8. Damage/shortage/excess report9. Daily receipt voucher10. Package slip. 1. Bin card: ADVERTISEMENTS: A bin card is said to be mirror of the bin which depicts the quantity materials stored therein. It tells the history of the bin. If functions as materials movement record and as a replenishment index. It is a brief version of the stock ledger pertaining to an item and serves the purpose of a ready reckoned for the item binned therein. The bin card serves the following purpose:(i) It is a check on the stock ledger recording.(ii) It helps in verifying the stock.(iii) It is a…
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09Sep 2018 by Reese Bannister

5 Important Steps in Purchasing and Receiving Procedure of Materials

Accounting
Purchasing procedure varies with different business forms, but all of them follow a general pattern in the purchase and receipt of materials and payment of obligations. The important steps in purchasing and receiving procedure are as follows (Fig.9.1). STEP-I: Purchase Requisition: A form known as purchase requisition is commonly used as a formal request to the purchasing department to order goods or services. The purchase requisition serves three general purposes:1. It fixes the responsibility of the department/ personnel making the purchase requisition. ADVERTISEMENTS: 2. It can be used for future reference.3. It automatically starts the purchasing process and informs the purchasing department of the need for the purchase of materials.Usually, purchase requisitions are prepared by the storekeepers for regular stores items which are below or approaching the minimum level of…
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09Sep 2018 by Reese Bannister

What are the Main Applications of Production Possibility Curve?

Industry
Any point on the PPC implies existence of full employment and full efficiency, but production of a combination below the PPC, at a point say A, implies existence of either unemployment or inefficiency. Refer to point A in Figure 1.3.Given full employment, it implies existence of inefficiency at point A. Alternatively, given full efficiency, the combination produced at this point implies existence of unemployment. The problems of unemployment and inefficiency can, thus, be investigated with the help of these curves. ADVERTISEMENTS: PPCs help to investigate the problems of growth and development also. In Figure 1.4, let FF be the production possibility curve for the year, say 2002 and let F’F’ be that for the year 2003. Since F’F’ is above FF at all levels of output of the two goods,…
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09Sep 2018 by Reese Bannister

Difference between Hybrid Structure and Matrix Structure of Departmentalization

Decision Making
Difference between Hybrid Structure and Matrix Structure of Departmentalization are described below: Hybrid Structure: This structure is a form of departmentalization, which combines both functional and divisional structure. Particularly large organizations adopt this structure to gain the advantages of both functional and divisional structures. ADVERTISEMENTS: Functional structure gives the benefits of economies of scale, in-depth expertise and resource utilization efficiencies, whereas, divisional structure gives the benefits of specialization of products, services and markets. In India, the most of the public sector units and departmental undertaking like railways, etc., follow this structure. A typical hybrid structure of an organization is illustrated below:Hybrid structure gives the benefit of specialized expertise and economies of scale in prime functional areas. It facilitates adaptability and flexibility in handling diverse product or service lines, territories, differing…
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