Category Archives: Business

Variable or Direct Costing

Variable costing is very important element of cost and management accounting. Variable costing charges products with only those manufacturing costs that vary directly with volume. Only prime costs (direct materials and direct labor) plus variable factory overhead expenses are assigned to inventories, both work in process and finished goods, and to the cost of goods sold. Thus, these variable costs are charged to the product while fixed manufacturing costs are totally expensed in the current period. Manufacturing costs such as depreciation, insurance, and taxes that are a function of time rather than of production are excluded from the cost of the product. Also excluded are salaries factory supervisors and office employees as well as wages of certain factory employees, such as maintenance crews and guards, which are considered period costs rather than product costs.

Direct costing focuses attention on the product and its costs. This interest moves in two directories: (1) to internal uses of the fixed variable cost relationship and the contribution margin concept; and to (2) to external uses involving the costing of inventories, income determination, and financial reporting. The internal uses deal with the application of direct costing in profit planning, product pricing, other phases of decision making, and in cost control. Executive management, including marketing executives, production managers, and cost analysts, has generally praised, control, and analytical potentialities of direct costing. Fixed costs calculated on a unit cost tend to vary. On the other hand, direct unit costs and the contribution margin per unit tend to remain constant for various volume of production and sales.

In cost volume profit Analysis, contribution margin or marginal income is the result of subtracting all variable costs from sales revenue. In direct costing, an income per unit not calculated; only an income on total sales of all products is determined by subtracting the total fixed cost from the contribution margin.

The concept of zero based budgeting was introduced in 1960. The concept was initially used for some government and business organizations and more recently has increased attention. Zero based budgeting is a budget-planning procedure for the reevaluation of an organization’s program and expenditures. It requires each manager to justify the entire budget request in detail and places the burden of proof on the manager to justify why authorization to spend any money at all should be granted. It starts with the assumption that zero will be spent on each activity-thus the term “zero base”. What a manager is already spending is not accepted as starting point. Managers are asked to prepare for each activity or operation under their control a “decision package” that includes an analysis of cost, purpose alternative course of action, measure of performance, sequences of not performing the activity, and benefits. The zero based budgeting approach asserts that in building the budget from zero, two types of alternative should be considered by managers: (1) different ways of performing the same activity and (2) different levels of effort in performing the activity. Success in implementing zero based budgeting requires linkage of zero based budgeting to the long range planning process, sustained support and commitment from executive management, innovation among the managers who makeup the budget decision packages, sale of the procedure to people must perform the work necessary to keep the concept vigorous. Sound budgeting procedure should always require a careful evaluation of all operating facts each time the budget is prepared. There fore the zero based budgeting procedure is new and unique mainly in approach rather than in basic planning and control philosophy.

Rashid Javed is an Asian author. He writes articles about various topics of financial accounting and managerial accounting such as debt to equity ratio and contribution margin
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Start a Baby and Child Proof Business

If you have or know children, you know that they can be the sneakiest little things, even when for the most part they behave as perfect angels. But even the most behaved child can have a way of getting into many areas and places that they simply do not belong, and as a result, injury or accidents can occur instantly. More and more baby and child accidents are being reported every year, and sometimes the results are tragic. It only takes a second for a mom to turn her back for accident or tragedy to occur, and this is why baby and child proofing business is such a booming business today. If you are considering starting a business, you may want to start a baby and child proof business, and you will be surprised to learn just how easy and affordable it can be.

The Concept

The concept behind a baby and child proof business is that you will go into someone else’s home, and essentially child proof their home for them. If you have children, you will be a natural at this, as you will already know what to look for and what the hot spots and problem areas are. With so many gadgets on the market, many first time parents are lost and confused as to what should or should not be done to child proof their home. This is where you come in. Parents will hire you to consult in their home, and child proof it for them. You will inspect their home, install necessary safeguards, and point out any potential dangers to their children.

Startup Costs

There is no license or degree required for this business, but it would help you to do as much research on child proofing as possible. If you are a parent, your natural instinct will come in handy, particularly if you’ve been ‘on the job’ for quite some time. Start up costs will only include any marketing or advertising costs you incur, and some basic tools to assist in installing devices and latches. Invest in some top quality tools such as drills, wrenches, screwdrivers, and some basic safety devices that you can show your clients. Additional safety devices can be purchased on an as needed basis and you can then invoice your clients for these costs. Because you are dealing with safety issues and hazard potential, it is a good idea to obtain liability insurance as well. Check with your state, as some states may even require liability insurance.

Marketing Your Business

Marketing your business will be easy, because you already know who your target clients are, first time moms! First time moms are the most nervous and the most likely group to invest in professional child proofing services, and you can market this group anywhere. Target groups of pregnant moms, or new mothers by placing flyers and ads in maternity wards of hospitals or in pediatricians offices. You can even include packages with your business cards, brochures, information to be handed out to new mothers in the hospital. Most new moms receive a huge amount of information to help them along the way when they are in the hospital and this is a great starting point. Yellow pages ads are also a great way to go, as this may be the first place new parents look for this information.

A child proofing or baby proofing business can be a rewarding and exciting career. It is much easier to do than you think!

Mommy Empire is dedicated to helping moms succeed with their work at home business

Be sure to check us out on the Web for more internet business ideas and other home business topics!

Drug Store Fixtures

Drug store fixtures are a unique blend of wood and steel components. A comprehensive range of attractive fixtures are available through specialized companies. You can buy these fixtures from a number of local sellers at reasonable rates. Used fixtures can be bought from local drug store owners when they go in for renovation or sale. Fixtures for an average size drug store may cost around $20,000.

The drug store fixtures house light fixtures and other hardware fixtures. In a heritage drug store, the main attraction is a set of antique drug store fixtures. In a modern drug store, the main fixtures are medication distribution systems, medicine storage systems and floor supported counters. Gondolas, slat wall panels, hangers, packaging, literature racks, glass floor displays, shelving, sign holders, tables, literature holders, risers, wall standards, brackets, display cases and counters, backroom storage, news stand, toy area, and cash counter wall unit are all part of drug store fixtures. .

All drug store fixtures are designed to provide good functionality with flexibility. The free standing fixtures are used as storage devices having ample space and work space, which can be easily changed in accordance with the store?s needs. The floor supported fixtures are good for supporting heavy packaging equipments. Another type of store fixture is shelves that are used for storing and shelving drugs efficiently. Drawers feature durable metal construction with open or closed faces. All these standard support products are specifically designed to suit each corner of the drug store to make the business more productive.

There are many leading drug store fixtures sellers offering a professional line of fixtures. Most of these sellers are certified and recognized by a number of agencies.

Use the Internet to find more details of sellers of drug store fixtures.

Store Fixtures provides detailed information on Store Fixtures, Store Fixture Parts, Metal Store Fixtures, Antique Store Fixtures and more. Store Fixtures is affiliated with POS Systems
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Risks in International Business

Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are:

(1) Strategic Risk
(2) Operational Risk
(3) Political Risk
(4) Country Risk
(5) Technological Risk
(6) Environmental Risk
(7) Economic Risk
(8) Financial Risk
(9) Terrorism Risk

Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers.

Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization.

Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country’s political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets.

Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments’ policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk.

Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.

Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area.

Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business.

Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm’s ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms’ assets are confiscated and that contributes to financial losses.

Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries.

Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.

Dr. Sidney Okolo is a professor, consultant, strategist, and Africa expert. He is affiliated to several universities, the Managing Director of International Business Associates, a management consulting firm, and also the CEO of Global Education Support, an education assistance program.

Among other things, he engages in all aspects of learning, knowledge, organization and human change. His focus is on leadership, management, entrepreneurship, profit engineering, human potential, excellence, achievement, business strategy, research and development. Product management, change management, conflict management, athlete management, marketing, business development and operations. He works with clients to adapt to change due to change in factors of production, technology, goods and services. He engages clients in training, retraining, development, skills enhancement, association, behavior modification, ways of thinking, and attitude adjustment. In addition to his work in the United States, his focus is also on developing countries in the continent of Africa, their leadership, culture, economic and market structure, community planning and development, and his created four letter word, “PIES”, which stands for: poverty, instability, ethnicity, and sectarianism.

Workplace Problems Discuss Openly on Behavior Issues

We are in a dilemma if we should really confront a coworker for bad behavior. Whether we share good relationship or just a formal one, telling a person that he is wrong can be uncomfortable which most of us avoid and wish others do it.

Sometimes coworkers exhibit awful and annoying behavior. Based on the rapport they have with others on the office, they intentionally or unintentionally take us for granted and end up compromising with basic workplace etiquette. We for the same reason abstain from confronting them. We ignore them thinking they will change their behavior. When things start getting worse, we wish someone to tell them to change.

We do no good to the specific coworker, the workplace and to ourselves by this. When it comes to workplace, one should maintain an expected level of etiquette.

Decency at workplace: It is essential to let others do their job without disturbance, or at least for the sake of decency. A compromise is only tolerated, that too for sometime. After all, others will not pay the price with their productivity. If we spare him for fear of spoiling relations or being assumed unkind, we are allowing the situation to turn worse.

Do not be reluctant: Many times, telling or convincing a coworker will not work out. He will be reluctant to admit this mistakes and one will have to confront him and prove that he is wrong. The task can make us loose our cool. We think whether it is worth the effort.

Saving our team:

Yes! It is worth it. We are saving ourselves from decline in productivity or being mistaken as an accomplice of the person. We are saving the person from getting addicted to that behavior or hindering his professional growth and getting fired. We are saving our team, our project and our job. In fact we are demonstrating leadership. Confronting a coworker if it is for a constructive purpose is not wrong. It actually earns is credit. We will surely gain support of others, who equally respect etiquette. Many times, the coworker does not realize that he is annoying or offending his colleagues with his behavior. Or his ego stops him from admitting it. So, when he handled smartly, the confronted person will not hold any grudge against us.

In case, the coworker is our friend, we are all the more responsible for correcting him. Instead of letting others hurt him or mock at him, we can put it across to him in a suitable way and make the workplace better.

To get powerful and effective tips on workplace related problems visit http://workexpert.co.cc/ a website full of tips and advices from expert workplace managers, where you can learn about workplace problems

Real Estate Prospecting Ideas From Top Producing Realtors

Whenever you hear the term “referral letter marketing”, as a Realtor, what immediately comes to mind? I’ll bet you $20 you figure I’m talking about getting letters of recommendation and testimonials from your past clients, correct?

That can also be an amazing marketing method for Realtors. Although, I’m talking about getting yourself an overflow of clients sent to you by professionals like attorneys, contractors, CPA’s and landscapers. And all you’ll need is a “down-to-earth” letter that you jot down yourself.

Here’s the referral letter marketing method for Realtors or agents in a nutshell: make a list of professionals that are likely to have clients that could potentially be your clients too. Then, sending it by regular mail, pen a personal letter to your list of respected professionals.

Be sure you get unique and use an envelope that stands out from every other white, stock envelope in the mail. Be certain to follow up by phone, if you can, with each professional that you’ve sent your letter to.

Many Sharp Realtors and agents borrow this single marketing method to fuel their real estate businesses for their entire careers!

Initially, let’s create a list of professionals that truly have the clients you could work with. . .

– CPA’s

– Loan Officers (likely goes without saying, right?)

– Financial Planners (certified)

– Real Estate Lawyers

– Building Contractors

– Appraisers

– Title Reps

– Electricians (residential or maybe commercial, depending on your business)

– Plumbing Contractors

– Landscape Contractors

– Handymen

– Makes sense?

That list should get you off and running but there’s several more you can add in the future.

You’re probably questioning how to get all these professional’s info to market to, right? Wonderful question, glad you asked. You’ve got a pair of options but they depend on your marketing budget.

Searching through the yellow pages, on-line, is a cheap choice. As a Realtor, you already have a “farm area” you work in so you’ll want to keep within those borders. With the yellow pages alternative, the downside is that it can be time consuming.

You have to run through each person listed and get their name, phone number and mailing address. Like I said, this may require a bit of time but it’s free of charge.

Another alternative for building this marketing list of professionals is to easily buy a list. Exactly as you’re on a “Realtor list” out there someplace for sale, these professionals are on lists that the general public might buy as well.

These types of lists aren’t unethical at all (unfortunately for several of us). Several folks don’t know but these types of lists are compiled and available for sale if professionals, like us real estate agents, join an association or offer their info to a publication that they subscribe to.

Surprised? Now you get why you get so much real estate junk mail and email.

When it comes to buying this list of professionals, you have a crowd of list companies to select from. Whichever list company you choose, ideally, they should provide you with each profession you’ll need for your list, rather than going to a separate company for each profession. Buying your list will cost you some marketing dollars but you’ll save yourself a pant load of torment and working hours.

Whether you choose to pay money for your list or compile it yourself, as soon as you have it, you can start off crafting your referral letter for these professionals. Regrettably, copywriting is a topic of its own and we simply can’t get into it right now, or else you’ll be studying a novel today. Learning to create sales copy is a long matter by itself.

All you need to grasp right now is that this letter can’t be “salesy” like a letter you’d send to your farm list of homeowners.

Whenever one of the professionals on your list gets your letter, you want them to feel as if they’re the only person who received it, even if you may replicate it and mail it to the remainder of your list.

The trick is penning your letter as if you were speaking to each professional in-person. Do not be like your local bank and write some kind of “this is so boring I could vomit” referral marketing letter. Catch the reader’s interest, write to them like a sincere person and not like an institution.

The crux of your letter absolutely must explain that you’d wish to start a reciprocally beneficial, professional relationship with them (but express it in a personal way, of course). The end result you’re looking for is to be their preferred Realtor for all their clients who need real estate services. Specify for these professionals however they will gain without “selling” them, make sense?

If you know something personal about their company or the area they work in, throw it in the letter. If a professional has helped a customer you know, feel free to write that in your letter also. It’s difficult to get “too” personal in these letters unless you decide to blab about their momma, which I wouldn’t recommend.

I’d strongly recommend that you pen your referral letter yourself, rather than hire somebody else to do it. However, if there’s no chance you’ll even ponder about writing your own referral letter, then go ahead and employ a free-lance copywriter to take care of it for you.

Perform a Google search for “self-employed writers” and you’ll understand some companies to select from. On some of them you can sift through self-employed writers from all over the country and world. The excellent thing is a few of these companies allow you check reviews on each writer, how much they charge and even reach them with “interview questions”. On various sites, you can place an opening for the project you need written and have independent writers apply to you. It’s really pretty convenient.

Ok, so now that you have your marketing list and referral letter scripted, it’s time to mail it out. Only please don’t simply send it in a plain white envelope similar to everyone else. . . please, please, please!

Search for a mailing package or another envelope that will stick out among all the mail these professionals will be sorting through. The idea is that you want your mailing piece to stand out amongst every other letter that professional is receiving that day. Also, a great way to personalize your letter and have it opened, is to have the mailing and return addresses hand-scripted.

Ponder about how you prioritize your mail. The letters that seem to be hand-scripted get opened first, correct?

The next thing you want to do is enclose a unique marketing piece, aside from your referral letter. One marketing suggestion would be to put together a video with Animoto, burn it on a DVD and send it with your letter.

One of my friends, a life insurance salesman, sent out a similar mailing and included poker chips with his contact info on them. His slogan on the poker chips was “Don’t Gamble on Your Life”.

Isn’t that brilliant? That’s the sort of creative idea you need in order to stick out from your competition, or at least you want to understand where to get the ideas!

With this referral letter, make certain you specify for these professionals to not just call your phone, if they want, but also to check out your blog or website. Offer them the choice but make certain you give them both. You can never tell who hates talking on the phone and who hates looking at websites.

This last step is probably the most crucial. Repetition is crucial with any marketing method you choose, particularly when mailing letters, as we’re talking about. Marketing industry stats demonstrate a consumer needs to see your message or hear from you at least 7 times before they become familiar enough with you to act.

So it’s evidently important to keep following-up with these professionals on your list. After you’ve sent your initial referral letter, try following up by regular mail or a
telephone call about 1 time a month. If you have their e-mail address, you can start using that for the follow ups also.

The thing to lookout for is coming on too forceful and smothering them, much like a dating relationship. You don’t need to let them fail to remember who you are but you also don’t want to be calling or mailing them every other day.

As a side note, if you have the marketing funds but don’t have the time, think about hiring a teen or college kid to stuff these mailers. Your college kid or teenager can stuff all the envelopes and address them but I’d still recommend for you to write the referral letter yourself.

In all sincerity, when it comes to Realtor marketing tips, referral letter marketing will set you up as a top real estate agent for years and years to come. Ultimately, this marketing method can give you a free stream of leads and prospects that can build you into a top producing Realtor or agent, as long as you stick with it and form these referral relationships correctly.

If you truly help these professionals as much as you need them to help you, your closings will increase and you’ll work your way up to being the top real estate agent in your neighbourhood.

Shiloh Street University is an online marketing school for Realtors, dedicated to “Creating Wealthy Agents through World-Class Marketing” by providing step-by-step video on cutting-edge tips to generate Realtor leads through top producing Realtor advertising advice.

Voyage charter broker & agent companies.

In a voyage or time charter the charterer charters the ship (or part of it) for a particular voyage or for a set period of time. A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs, fuel costs and crew costs. In these charters the charterer can direct where the ship will go but the owner of the ship retains possession of the ship through its employment of the master and crew. Whereas in a bare-boat or demise charter, the owner gives possession of the ship to the charterer and the charterer hires its own master and crew.

Chartering is an activity within the shipping industry. In some cases a charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. Freight rates may be on a per-ton basis over a certain route or alternatively may be expressed in terms of a total sum – normally in U. S. dollars – per day for the agreed duration of the charter. There are hundreds of voyage charter brokers or agent companies. These companies offer yacht finding and travel organisation services similar to travel agent only more specialized. Their purpose is to use their experience and networks to locate a client’s ideal vessel in terms of price and location.

A charterer may also be a party without a cargo who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit above the hire rate, or even makes a profit in a rising market by re-letting the ship out to other charterers. Depending on the type of ship and the type of charter, normally a standard contract form called a charter party is used to record the exact rate, duration and terms agreed between the ship-owner and the charterer.

There has been increasing demand for voyage vacations. While both the international leisure travel industry (particularly outdoor activities based vacations) and the boating industry has both boomed in the last decade, so too has the voyage charter industry which incorporates both of these pursuits.

In a voyage charter, the charterer hires the vessel for a single voyage, and the vessel’s owner provides the master, crew, bunkers and supplies. The voyage charter is a contract for the carriage of a stated quantity and type of cargo, by a named vessel between named ports against an agreed price, called freight. It is the most wide spread form of chartering. Several possibilities can occur, an entire ship maybe chartered for the transport of a full cargo, for a well determined voyage, or for a voyage to go and return, or for a series of specific voyages, or for a round trip with different harbors and the right for the charterer to load and discharge. Sometimes a part of the ship is chartered for the transport of a certain shipment or part cargo.

If the ship is chartered entirely, this agreement will usually be noted by a charter party, although, under certain legislations, this agreement may also be materialized by other means, even by testimony. Usually, under a voyage charter both the fixed costs and the variable costs are at the expense of the ship owner. In the contract of affreightment it is clearly stipulated who must pay the cargo handling costs.

In a voyage or time charter the charterer charters the ship (or part of it) for a particular voyage or for a set period of time. A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs, fuel costs and crew costs. In these charters the charterer can direct where the ship will go but the owner of the ship retains possession of the ship through its employment of the master and crew. Whereas in a bare-boat or demise charter, the owner gives possession of the ship to the charterer and the charterer hires its own master and crew.

Chartering is an activity within the shipping industry. In some cases a charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. Freight rates may be on a per-ton basis over a certain route or alternatively may be expressed in terms of a total sum – normally in U. S. dollars – per day for the agreed duration of the charter. There are hundreds of voyage charter brokers or agent companies. These companies offer yacht finding and travel organisation services similar to travel agent only more specialized. Their purpose is to use their experience and networks to locate a client’s ideal vessel in terms of price and location.

A charterer may also be a party without a cargo who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit above the hire rate, or even makes a profit in a rising market by re-letting the ship out to other charterers. Depending on the type of ship and the type of charter, normally a standard contract form called a charter party is used to record the exact rate, duration and terms agreed between the ship-owner and the charterer.

There has been increasing demand for voyage vacations. While both the international leisure travel industry (particularly outdoor activities based vacations) and the boating industry has both boomed in the last decade, so too has the voyage charter industry which incorporates both of these pursuits.

In a voyage charter, the charterer hires the vessel for a single voyage, and the vessel’s owner provides the master, crew, bunkers and supplies. The voyage charter is a contract for the carriage of a stated quantity and type of cargo, by a named vessel between named ports against an agreed price, called freight. It is the most wide spread form of chartering. Several possibilities can occur, an entire ship maybe chartered for the transport of a full cargo, for a well determined voyage, or for a voyage to go and return, or for a series of specific voyages, or for a round trip with different harbors and the right for the charterer to load and discharge. Sometimes a part of the ship is chartered for the transport of a certain shipment or part cargo.

If the ship is chartered entirely, this agreement will usually be noted by a charter party, although, under certain legislations, this agreement may also be materialized by other means, even by testimony. Usually, under a voyage charter both the fixed costs and the variable costs are at the expense of the ship owner. In the contract of affreightment it is clearly stipulated who must pay the cargo handling costs.

Explanation of T account, Debit and Credit, and Double entry Accounti

In this accounting lecture, we will talk about T-accounts, accounting debits and credits, accounting balances and double entry accounting system.

All accountants know several terms that create basis for any accounting system. Such terms are T-account, debit and credit, and double entry accounting system. Of course, these terms are studied by accounting students all over the world. However, any business person, whether an investment banker or a small business owner, will benefit from knowing them as well. They are easy to grasp and will be helpful in most business situations. Let us take a closer look at these accounting terms.

T-Account

Accounting records about events and transactions are recorded in accounts. An account is an individual record of increases and decreases in a specific asset, liability, or owner’s equity item. Look at accounts as a place for recording numbers related to a certain item or class of transactions. Examples of accounts may be Cash, Accounts Receivable, Fixed Assets, Accounts Payable, Accrued Payroll, Sales, Rent Expenses and so on.

An account consists of three parts:

– title of the account

– left side (known as debit)

– right side (known as credit)

Because the alignment of these parts of an account resembles the letter T, it is referred to as a T account. You could draw T accounts on a piece of paper and use it to maintain your accounting records. However, nowadays, instead of having to draw T accounts, accountants use accounting software (i. e. , QuickBooks, Microsoft Accounting, Peachtree, JD Edwards, Oracle, and SAP, among others).

Debit, Credit and Account Balance

In account, the term debit means left side, and credit means right side. These are abbreviated as Dr for debit and Cr for credit. Debit and credit indicate on which side of a T account numbers will be recorded.

An account balance is the difference between the debit and credit amounts. For some types of accounts debit means an increase in the account balance, while for others debit means a decrease in the account balance. See below for a list of accounts and what a debit to such account means:

Asset – Increase
Contra Assets – Decrease
Liability – Decrease
Equity – Decrease
Contribution Capital – Decrease
Revenue – Decrease
Expenses – Increase
Distributions – Increase

Credits to the above account types will mean an opposite result.

Double Entry Accounting System

A double entry accounting system requires that any amount entered into the accounting records is shown at least on two different accounts. For example, when a customer pays cash for your product, an account would show the cash received in the Cash account (as a debit) and in the Sales account (as a credit). All debit amounts equal all credit amounts provided the double-entry accounting was properly followed.

Having a double entry accounting system has benefits over regular, one-sided systems. One of such benefits is that the double-entry system helps identify recording errors. As I mentioned, if one amount is entered only once in error, then debits and credits won’t balance and the accountant will know that one or more entries were not posted fully. Note, however, that this check will help spot errors, but will not identify all cases of errors. For example, equal debits and credits will not identify an error when an amount was posted twice, but was posted to wrong accounts. Keep this in mind when analyzing causes of errors in accounting records.

Igor Voytsekhivskyy is a CPA and CIA working in public accounting. He maintains two websites: SimpleStudies.com devoted to helping people learn accounting online for free and Studiesfaction.com a free educational website on business related subjects.

Belts and Some of Its Many Uses

Some people don’t even realize what that piece of strap called belt can do for them and their everyday look. For most people, belts are just one long piece of accessory that is not that important but that is certainly not true. Belts have lots of uses in people’s everyday lives and this will help you understand some of the many uses of belts and what it can do for you.

One of the main uses of belts is for support. Men are the ones who are always in need of belts for support because they often buy pants or trousers that don’t exactly fit their waist so to eliminate the risk of any kind of embarrassment, they use belts to hold their pants in place and to keep them from falling. There are also some women who need to use belts for the same reason especially those whose figure requires special cut in jeans or pants. It is important that when buying belts, you must make sure that you will try the belt on first before purchasing to make sure that the size is just right for you. It should be adjusted about two or three sizes both ways so you can still use it even if you have gained or lost some weight.

Belts can also help plus-sized women achieve a sexier figure because it could create the illusion of a slimmer waist and a proportional figure. Most plus-sized women tend to buy loose and big tops that would make them look even bigger than their actual size. Belts can help them provide a solution to this problem. All these women have to do is to choose a cute belt that will go well with their outfit and cinch it to their waist and they can instantly achieve a slimmer waist. Just don’t overdo it because it will make your appearance look worse. Women with already good figure can emphasize it by putting a belt on their hips. You can see celebrities wearing their belts loosely on their hips to draw attention to that part and show off their small waist and curvy hips.

Belts can also improve your personal style. Belts are always in fashion and they are always included in the list of fashionable staples that every person must have. They come in different colors, materials, designs, and forms to suit your mood, your style, your personality, and your preference. Spice up a dull and boring outfit by using a belt that will add personality and character. Achieve a celebrity look by paying attention to the kind of belt that they are using.

Belts can also be very helpful especially to those who are working. You can use your belt to hold things and stuff. Policemen and security guards use their belts to hold the holster for their gun and other stuff. Some merchants use their belts to hold bags where they put their coins or money. Some use their belts to hold their mobile phones and other gadgets. There are more uses of belts and it will all depend on your own creativity. Belts are basically created to hold men’s pants but as time goes by, people have discovered that they can also be used for other purposes.

The hospitality industry in India is growing

According to industry reports, the hospitality industry in India is growing at a rate of 15 per cent annually. More and more companies in India are investing in the sector to fill in the gap between supplies (61,000 rooms) and demand (100,000 rooms).

The year 2010 saw the demand in hospitality industry pick up after a slow growth in 2009. Companies in India such as Reliance Industries (RIL) are entering the hospitality industry through a JV with Mumbai-based real estate company Maker Builders. RIL plans to build two hotels in Mumbai Bandra Kurla Complex.

International hotel chains such as Hyatt, Radisson, Meridian and Marriot are expanding their chains in the country by tying up with companies in India. World hotels will be signing a deal for a resort at Aamby Valley in Maharashtra as well as opening business hotels in New Delhi and Chennai to enter the hospitality industry.

InterContinental Hotels Group (IHG) has tied up with Holiday Inn Express, a mid-market hotel brand, and its first property is expected to open in Noida in 2012. Lebua Hotels & Resorts, a Thailand-headquartered luxury hospitality chain is planning to enter India as well. Lebua has hotels in Bangkok and New Zealand.

According to the World Travel and Tourism Council (WTTC) 2011 report, India is expected to attract 6,179,000 international tourist (overnight visitor) arrivals in 2011, generating US$ 15.05 billion (INR678.6bn) in visitor exports (foreign visitor spending, including spending on transportation). The direct contribution of Travel & Tourism to GDP is expected to be US$ 34.8 billion (INR1,570.5bn) in 2011 which is about 1.9 per cent of the country’s GDP. This reflects that the hospitality industry in India will have to gear up to cater to such high demand. Companies in India are investing their capital and industry reports predict that the capital investment in India, in the travel and tourism sector will grow at the rate of 8.8 per cent between 2010 and 2020.

Taking the cue, online travel companies too are making their entry in India to cash in the booming travel and hospitality industry. Hotels.com, an international online hotel booking portal, has plans to spend about Rs 25 crores on promotional activities. ERevMax, an online channel management technology provider, has developed an innovative product for the hotel industry. The product allows fully automated inventory management and rate calculation across over 700 connected websites based on channel performance.

Mandarin Oriental Group, which owns one of the world’s most luxurious hotels, resorts and residences, will be adding 16 new properties in India in the next five years. Other companies in India such as Small Luxury Hotels of the World (SLH), a marketing firm of luxury hotels, is expecting to expand their foothold in India. Currently, SLH has 13 hotels in India and hopes to add 10 more hotels by the end of 2011. The company also has a website for travel agents through which agents can book rooms for their clients.

Jajati Patro is a certified Business Analyst, providing information on business sectors in Articles and Blogs through global e services via internet. These days he is working on Companies in India and Hospitality Industry