Prestige Telephone Company Essay Essay Example

Prestige Telephone Company Essay Essay 1. Identify the costs that are relevant to the analysis to stop Prestige Data Servicess: Relevant costs in the analysis by Prestige Telephone Company determination to stop Prestige Data Services include: fixed costs which must be absorbed by the parent company ( Prestige Telephone ) upon shutdown ; outstanding Prestige Data Services debts ; costs of retraining maintained employees ; costs associated with outsourcing informations services antecedently provided by Prestige Data Services ; chance cost of utilizing infinite rented to Prestige Data Services ; selling costs attributed to geting extra Prestige Data Services clients ; costs of increasing promotional activities of Prestige Data Services. In add-on. Prestige Telephone Company should see the qualitative cost of reduced employee morale which may ensue upon closure of Prestige Data Services. We will write a custom essay sample on Prestige Telephone Company Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Prestige Telephone Company Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Prestige Telephone Company Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Care costs 2. Justify why each of the costs in point 1 is relevant: The costs listed supra are all relevant because they each vary with the shutdown determination. ? Fixed costs which must be absorbed by the parent company ( Prestige Telephone ) upon shutdown: Payroll. charge. aggregations. and other corporate services were provided by Prestige Telephone in return for an sum from Data Services based on rewards and wages. These fixed costs allocated to Prestige Data Services must now be accounted for by the parent company.? Costss of retraining employees: If employees are retained by Prestige Telephone. rewards and wages that were antecedently incurred by the Data Services line will hit Prestige Telephone’s budget. Besides. new accomplishments will be required of employees retained by the company every bit good as attach toing preparation disbursals.? Costss associated with outsourcing informations services antecedently provided by Prestige Data Servicess: Prestige Telephone will still necessitate the services Prestige Data Services supply and therefore will necessitate to outsource them. Since Prestige Telephone was utilizing a monetary value cap based on estimated informations use in 1999. they were efficaciously acquiring discounted informations service rates from the subordinate. If Data Services is shut down. the company might incur much higher service disbursals.? The care cost is relevant because if Data Services is shut down the company will no longer incur this costs. therefore it needs to be considered as a cost the parent company can extinguish.? Opportunity cost of utilizing infinite rented to Prestige Data Servicess: If Prestige Telephone decides to close down the Data Services Company. the parent company will lose the $ 8000 monthly rental fee paid by the current subordinate. Additionally. Prestige Telephone must see the chance cost of leasing the infinite to another company or service that may supply them with more income.? If Prestige Data Services is shut down. selling costs attributed to geting extra Prestige Data Services clients and promotional activities will no longer be necessary.? Termination of Prestige Data Services employees as a consequence of shut down may cut down the morale of any maintained employees or employees of the parents company. Prestige might see reduced productiveness or increased turnover as a consequence. 3. Identify the costs that are NOT relevant to the analysis to stopPrestige Data Servicess: Costss non relevant to the determination are done for costs such as the costs of developing Prestige Data Service employees. investings in the IT substructure. and any owned Prestige Data Services Equipment. In add-on. the fixed part of the electricity costs is non relevant. Depreciation costs are besides non relevant. The rentals for computing machine equipment are non-cancelable and therefore may be considered sunk costs because Data Services is expected to cover the costs associated with the rentals prior to being shutdown. However if Prestige Data Services is unable to pay off the rentals. these costs will go relevant because the parent company. Prestige Telephone would be responsible for debts owed. 4. Justify why each of the costs in point 3 is NOT relevantFixed cost: Costss of equipment and fixtures are incurred whether or non Prestige Data Service continues to run. Even if the subordinate company is shut down. these fixed costs must still be taken into consideration. Some costs. such as electricity. whether used or non. will be charged for a certain basic sum every month and hence should non be considered relevant. Depreciation is non relevant because cost of equipment is a sunk cost. There is no important salvage value for the equipment. 5. Identify the grosss that are relevant to the analysis to stop Prestige Data Servicess: Grosss relevant to the analysis to stop the operation are commercial gross revenues gross which includes computing machine usage and other. 6. Justify why the grosss in point 5 are relevant:The grosss in point 5 differ across options. In other words. these grosss are straight tied to Prestige Data Services. If the production capacity of Prestige Data Services decreases to zero. all the gross ensuing from these operations will besides diminish to $ 0. which decreases the subsidiary’s part to its parent company. 7. Identify the grosss that are NOT relevant to the analysis to stop Prestige Data Services. The gross of Prestige Telephone and the gross from intercompany Gross saless are non relevant to the determination. 8. Justify why the grosss in point 7 are NOT relevant.As we explained in point 6. all grosss from Prestige Data Services will alter depending on the determination. As the production capacity is varied. all the grosss will change. These alterations show the expected overall consequence on net income. Gross at Prestige Telephone will non change based on the determination to close down Prestige Data Services because Prestige Telephone’s gross is non tied to the operations of the subordinate. From the position of the Parent Company. Intercompany Gross saless are a gross watercourse for the subordinate. but an equal cost to the Parent. therefore it doesn’t impact the balance sheet of the parent company. 9. Is Prestige Data Services truly a job to the parent company. Justify your reply. Prestige Data Service is non a job to the parent company. This is chiefly because: —Prestige Telephone will necessitate to absorb Prestige Data’s relevant fixed costs.—Prestige Telephone will hold to pay higher rates for services antecedently provided by Prestige Data Services. Regardless of possible sunk costs such as equipment rentals ( $ 95. 000 ) . Prestige Data Service positively contributes to the parent company. Additionally. if Prestige Data Services were to bear down Prestige Telephone the same rates ( $ 800 per service hr ) it charges for commercial services. the company would non be runing at a loss. If these commercial rates are considered competitory so the subordinate is salvaging its parent money. Furthermore. there are several schemes that can be implemented to increase the concern value of Prestige Data Services. such as cut downing computing machine use. 10. Fix monthly income statements for January. February. and March which back up your reply to item 9.

Origins essays

Origins essays Creationism vs. Evolution, the argument disputed by more scientists, more paleontologists and more everyday people than probably any other argument since the dawn of man. Who is right? Do the theories and evidence of evolutionists have the right answers or do the faith and facts of creationists hold the answers? What is creationism? Creationism is the idea that all forms of life, and particularly humans, were independently created by a willful act on the part of God or a deity. Whats wrong with creationism? That depends on what form of creationism you are referring to. There are several forms of creationism that all differ from one another. None are really scientific, though not all are unscientific to the same degree. Old earth creationism holds that the earth was created a very long time ago and populated with life more-or-less shown in fossil records. However, new species of organisms were created one-by-one over all that time, each the result of a separate creative act by the Deity. This theory is not scientific, because it cannot be falsified; any evidence can be made to fit into it. Sequential creationism says that the earth is old, and the major groups of fossils do reflect organisms living at different times in earths history. However, the major mass extinction represent t imes when all living things were destroyed, and then the earth was repopulated by a new creative act. The last extinction happened recently, after which the current animals and humans were created, but this isnt scientific either. Sequential creationism simply doesnt agree with the evidence. None of these mass extinctions wiped out all life. In many cases, we find the same species of organisms both before and after the extinctions. Day-age creationism says that the book of Genesis is accurate in describing the order of creation, but that each day in Gene...

Leadership Traits Required for Successful E&P Companies Essay

Leadership Traits Required for Successful E&P Companies - Essay Example This research will begin with the statement that Oil and Gas exploration industry in Africa is growing at a significant rate. The continent has a lot of potential for development and growth. This potentiality is helping Africa to experience significant foreign direct investments and business deals. The leaders are considered as major growth drivers of this oil and gas industry. It is the responsibility of the leading organizations to minimize the chances of workplace hazards. It is important to ensure health and safety of the employees to attain high reputation in the business market. Several leading organizations are implementing different types of leadership traits in order to meet the demand of the global population. British Petroleum is one of the leading organizations around the globe. They are operating in almost 80 countries. The brand image and personality helped the organization to expand their business in global marketplace. Tony Hayward and John Boone took some initiatives to maintain sustainable business operation of BP in the global market. But lack of pre-assumed initiatives and safety measures by Tony took the priceless lives of 11 employees in Rig explosion. The essay effectively discusses that a global organization cannot achieve success without best sustainable business practices and ability to motivate business partners and staffs. Introduction The oil and gas companies are growing on a continuous basis in Africa. The continent supplies about 8% of the total oil supply in the world which is equivalent to about 132.4 trillion barrels of oil every year. Adding to this the continent also supplies 7.0% of the oil that the entire world consumes. The continent has a shale gas potential of 15.7% of the world production and produces about 12% of the total production of oil in the world. This had led to the development of numerous oil and exploration companies in the continent and at present, there are about 32 national oil producing companies in Afri ca. Since the continent has a lot of potential for growth and development, it experiences a lot of foreign direct investments and deals throughout the year. Most of the potential regions providing oil are in the countries of Nigeria, Libya, Algeria, and Egypt. Thus the oil and gas industry is a booming industry in Africa and the success behind the growth is the natural resources that the countries are blessed with and the leaders of the companies who channel the resources in the right direction to generate the desired outcome. Leadership Traits Required for Successful Oil and Gas companies in Africa. The leaders act as the chief drivers of the growth of the oil and gas industry. The industry is exposed to a lot of risks and therefore the leaders of the companies have to be instrumental in running the entire drilling and exploration process safe and efficient. This safety awareness in the organization is essential both at the organization level and at the individual level. Thus the l eaders must practice this principle at every level of their operations. They should also maintain a safe environment for the workers of the companies. Along with this, they have to be extremely committed to the work that they deliver and this attitude should act as a guiding behavior for the rest of the employees of the organization. The leaders should aim at optimizing the conditions of oil exploration by minimizing the risks and maximizing the productivity. That would enable the companies to provide welfare to the society by and large. The leaders in this particular industry often make wrong decisions that lead to several accidents and injuries without reaping any substantial benefits. Thus it is necessary for the leaders to not only provide a guideline to the people regarding the work proceedings but also to monitor and scrutinize the activities on a day to day basis. These services have to be rendered by the leader with a lot of honesty otherwise the desired results cannot be ac hieved.