Interview Tips for MBA Admission

Basic knowledge for Clearing MBA Admission interview - After graduation, personal interview is the challenge for students aiming for MBA admission. Here is how to avoid pitfalls and leave an impression.

It is important to have some background information about the institute you apply to. Selectors can not comprehend why and how a person can say he is keen to join an institute about which he knows little or nothing. From the interviewers' point of view, the good applicant is one who had done some homework on the institute.

What you must know

a) A brief history of the college
b) Its main features
c) Location
d) Any important, newsworthy issue related to the institute
e) The nature of the course applied for

It is but natural that interviewers would quiz you on your field of specialization. You must go back for the principal text books and refresh your knowledge, definition, formulas, concepts and other related issues.
An interviewer judges your ability to perform on the basis of your past performance data.

Knowledge on your claims

You must list your achievements, academic qualifications, prior experience and extra-curricular activities. Such achievements, or claims, may be authenticated by certificates or photographs.

Get the important documents photocopied and attached with the bio-data, while the originals of all certificates should be catalogued in a folder and kept for reference, should the interviewer ask for them.

Tips for the interview

Before opening the door, adjust your attire so that it falls well and before entering ask, “May I come in sir/ madam?"
If the interviewers allow you to do so, make sure you enter and greet them, but this must be done smartly. Do not talk excessively at this point. A talkative person is instantly disliked and misjudged.

Do not bluff

If you do not know the answer to a question, it is a better to acknowledge this instead of trying to bluff your way through it.
Interviewers generally start grilling a candidate if they suspect him or her of lying.

Guard against this

Some common failings a candidate must guard against are:

* Poor physical projection
* Lack of courtesy and manners
* Being over aggressive
* Dishonesty
* Lack of liveliness
* Lack of eye contract
* Lack of knowledge
* Unpunctuality
* Extreme opinions
* Superficial answers

Listen carefully

It is imperative for you to listen carefully to the question being asked. If the question is not clear to you, it would be quite in order for you to seek clarification on the same, and definitely better than giving an irrelevant answer.

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Introduction to Financial Planning

We are introducing financial planning on the basis of IlexFS channel video. In this video, video maker assumes financial planning just like the planning of planting sweet fruit tree. When you buy the sweet fruit plant from market, you can not know all other works which are hidden and also without doing, you can not get sweet fruit. Same will happen on your business, you can start business but without financial planning, you can not know what are decisions, you have to take, what is capital structure,  you have to make. There are many things in financial planning and video maker explained all these things wonderfully with simple example of plant and its planning up to its becoming of a true full of sweet fruit.

1st Thing - Water = Budget Surplus

Budget surplus is just like water, without this water plant can not grow. Its means, all financial cost must be under budget and budget surplus will be helpful to grow your business. It also means that company has to make budget first before doing anything in financial planning.



2nd Thing - Water Tank = Emergency Fund

When you create a kitchen garden, you buy the water tank for continue supply water to your plant. Same thing is for business, you need emergency fund to operate your business. How much should it? It will depend on your expenditure pattern and income security. Now, question will be asked by you, how can it be created. Try to solve it with the help of your retained earning.

3rd Thing : Your Own Home or Kitchen Garden = Security for Your Funds

Suppose, you go to playing ground and plant a tree. What will happen? Some one will break your plant before becoming it tree. So, for security of plant, you need your own home. Same thing in financial planning, you must think security of your own fund which you have to invest. Even, you are earning just 3.5% on your saving account in govt. bank, but your money is safe. This is important point in financial planning.

4th Thing : Pesticides - Tax Saving Plans

You see some worms  are very harmful for your all sweet fruits will not produce due to this, so it is very necessary to use pesticides. Same thing, will happen in your financial structure. Financial structure will be in such a shape that you can give more tax saving plans to your customers and also get only tax saving plans.  

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Financial Planning

Financial planning is that function of financial management in which financial manager makes the plan to get fund at very low rate and to use it in profitable project. So that, company can survive in competition and develop itself.

Financial Planner as Tool of Financial Planning

According to Wikipedia, " Financial planner is very advance tool in this modern age for  making cash flow planning, education planning, retirement planning, investment planning, risk management and insurance planning, tax planning, estate planning and business succession planning under financial planning system. It also include Investment and Planning Issues like Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending. Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set."

Steps of Financial Planning

1. Establishing financial objectives

For making good financial planning, we take the first step in which we make the list of our all financial objectives. These objective can be divided into long term financial objective and short term financial objective. In long term financial objective, company makes the plan to buy the fixed assets at his limited budget and in short run financial objective, company can maximize his profits.

2. Formulating financial policies

For achieving financial objectives, financial manager has to take second step in which he has to make financial policies. These policies are general guidelines for company employees about how will they achieve their objectives at minimum cost.

3. Formulating financial Procedures

Financial procedures are very helpful to shape the practical form of theoretical financial policies after knowing the nature of company and type of funds. Suppose to fix the procedure to get loan from xyz bank is the example of financial procedure.

4. Flexibility and adjustments

Financial plannings are different from general management plannings because financial area is always changeable and growing and financial manager should have to make financial objectives, policies and procedures more flexible and adjustable according to changing environment of financial sector.

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Meaning of Management Accounting

We can explain the meaning of management accounting as the science in which accounting information are collected and analyzed. After this, these information are provided to management for creation of policies and decision making.

According to Anglo American Council on Productivity

" Management accounting is the presentation of accounting information in such a way to assist management in creation of policy and day to day operation of an undertaking."

From above meaning, we find that management accounting is combination of two words, one is management and other is accounting.

Management means decision making.

But Question is more important than meaning of management

How does manager take decision?

Accounting means resource of accounting date.

But, Question is more important that meaning of accounting

Why does Accountant do hard work day and night for recording and analysis of financial transactions?


Both above two questions are inter-related and invention of management might happen due to the finding answer of above two question

Ans of 1st question : Manager can take the decision with accounting information.

Ans. of 2nd question : Accountant do hard work for providing help to management of company.

After this following Cycle will start

Raw data
↓
↓

Financial Accounting  + Cost accounting
↓
↓

Useful Data

↓
↓
 →→ Management Accounting →→ Decision Making


So, it is concerned with accounting information that is useful to management. Management accounting's latest research was started since 1950 and after 60 years, its research has reached at the top level and financial statement analysis, ratio analysis, fund flow analysis, cash flow analysis, working capital analysis, investment analysis etc. are its main technique to analyze company and its income and financial position and on these basis, management takes the decision whether company invest his money in that particular company or not.

In simple words, any form of accounting enables business to be conducted more efficiently can regarded as management accounting.

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Search on Google SSL ( BETA)

We all love google and its new products. But, lack of knowledge who are using very few free products of google. So, this content is just awareness to publish what they can do with new products of google. Few days ago,  Google launched Google SSL (BETA). It has many benefits relating to security for writing search keywords and terms.

What does meant by SSL?

SSL (Secure Sockets Layer) is a protocol that helps provide secure Internet communications for services like web browsing, e-mail, instant messaging, and other data transfers. When you search over SSL, your search queries and search traffic are encrypted so they can't be read by any intermediary party such as employers and Internet service providers (ISPs).

It can be used as Anti Virus :

If your computer is infected with malware or a keylogger, a third party might still be able to see the queries that you typed. We recommend that everyone learns how to prevent and remove malware. Use it today by going to https://encrypted.google.com/

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Play Accounting Education's Video Tutorials on your Mobile phone

It is good news for all those who are learning accounting from online video that now you can play accounting education tutorial  videos on the screen of hundreds of different mobile phone. All these things has been possible with the new technology of YouTube. For watching accounting education's video tutorial, go to YouTube on your mobile' web browser. and write svtuition channel in search box in your mobile or direct write

After this, you can see any video out of different playlists. Moreover, it works just like on your computer. But not all mobile phones are able to stream videos. To see whether video is working or not, you have to test it on your mobile phone.

Lastly, but important, we highly recommend getting an unlimited data plan.

Thanks YouTube for not charging any fees from us and you means there is no cost to upload and watch any video from YouTube from mobile.

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Weakness of banks

This is not the time for Indian banks to walk Turtles' speed

One of major weakness, I have found in Indian banks which I want to share in this blog because, I think there are lots of accountants of Indian banks  who also watch this blog,  can take best decisions to remove this weakness.

Main Feebleness of Indian Banks :

Delay in Payment of Foreign Currency Check :-

Suppose, a person gets check of  Rs. 46000 in USA dollar, means he gets $ 1000 instead of getting his money in Indian currency from USA Company. Now, if that person will deposit his $ 1000 check, there is no system in Indian bank to pay quickly to Indian customer. With this Indian customer who are trading in USA suffers lots of problems due to not paying fastly. Customer will receive his payment after one month.

All Indian banks have same parrot's words that your check will go to USA and from where you get Indian money. Even after spending 63 years of Independence and more than 20 years of information technology, connecting network of banks in all over the world, all these banks can not provide the quick facility of payment of foreign currency check.

I am not showing just weakness of banks, I have some good ideas to solve this problem.

# Ist Idea :

All Indian banks manager with central banks must meet all foreign banks managers and discuss this issue to foreign banks. I think, customer has no tension how much foreign exchange charges will be spent on this fast exchange of money.

# 2nd Idea :

RBI of India must approve all foreign banks to deal, if they are ready to pay the customer's amount after taking foreign currency check.

For example, a customer who lives in India,  get the check of $ 1000 which is payable in Citi Bank New york. But, all over the India, there are lots of Citi bank's branches. RBI must allow all these banks to deal in India, if they pay to customer without sending check USA or any other foreign country.

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Pecking Order Theory of Capital Structure

Before learning pecking order theory of capital structure in company type business, please read our previous written other theories of capital structure :

1. Trade Off Theory of Capital Structure

2. Net Income, traditional and Modigliani and Miller Theory of Capital Structure

Pecking order theory of capital structure had been developed by Stewart C. Myers and Nicolas Majluf in 1984. Under this theory, main source of company's fund must be its own earned profit which should be reinvested in business activities. After this, company can raise debt and equity capital.

Why Did Stewart C. Nyers and Nicolas Majluf suggest this model of capital structure?

Both guys were so intelligent. They knew that debt and equity can use only if there is emergency or there is no profit from several years. But, if company uses his internal sources after paying  interest and dividends, then no one can stop company from  its progress. You can also apply its on your own small business.

Suppose, company is earning 30% on its total investment. At that time capital structure shows that 70% equity capital and 30% Debt. Company can save 20% after paying 10% interest and dividend and after doing this, company can reach 40% equity capital, 40% profit reinvested and 30% Debt. That will be good.

Testing of Pecking Order Predictions About Dividends and Debt

Prof. Eugene F. Fama of University of Chicago has tested pecking order theory and found that it will be effective for gaining high profit with low investment means high dividend payout.

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How to Teach Yoga to Kids

The word "Yoga" which is used in USA, is taken from Sanskrit language's word  "Yog". It means absorption of soul into God like absorption of small company into big company. In other words, with yoga, we can realize God in our living life. These days yoga is becoming popular for making kids fit and healthy. Not only kids or children, yoga is very important in every age because with yoga, we succeed to send pure air to every corner of body. After this, every part of body feels refresh and fitness. With yoga kids learns more fastly and they feel that a new energy enters in their body. But only do yoga exercise under the control of perfect yoga teacher. like math and accounting teaching, it also require proper guidance of good yoga teacher.

 I also do yoga from several years and with this, I feel fit and do all my work fastly and without any physical and mental problem. So, today, I teach the tips to teachers, how they can teach yoga to kids.

Teach Yum and Niyam before Yoga Asan


It is big mistake which is done by yoga teachers  that they start to teach yoga asan from first day of yoga class. This is so bad thing. Indian Scientist Pantajli had made 8 parts of Yoga or Yoga and Yoga- assan is the third part of Yog. It means, it is prime duty of teacher to teach yum and niyam first and then teach asan. If as teacher, you will jump to third step, it will surely harmful for your kids. Even on that point, I do n't agree with Yog Gurus, who  jumps to yoga asan and leave first two important steps of yog.

What is Yum?

To leave all bad things.


What is Niyam?

To act upon all good things practically.

What is Yoga Asan?

To sit in relax position is called yoga asan. Yoga can even live at this position more than 7 days.




Start Slowly Yoga Exercises


Body of kids is very smooth, so, start yoga exercises slowly by providing good instruction and importance of each yoga exercise. Don't hurry or give pressure to kids, if he or she is unable to do that yoga exercise. But, teacher should go and by personal help and difficult yoga exercise should be performed.




Teach Only Useful Poses for Kids


There are lots of poses which can be done for treating difficult diseases. It is duty of teacher to choose best poses for kids like tree shape pose, animal pose,  Yogi pose, snake pose and circle pose. These poses increase flexibility in kids.




Teach Difference Between Yoga Asan and Pranayam

A sincere yoga teacher also teach the difference between yoga asan and pranayam ( Yoga through controlling of breathing). We all know without pure air, we can not live and if we learn to control it we can also feel fit and healthy. Long breathing and sending all your air with the sound of om are some of best pranayam and kids can learn so fastly.

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What is Idle Time?

To know about idle time in cost accounting is very important for reducing the cost of labor because after increasing idle time, production cost will increase. First of all we understand what is idle time. Taking some rest after hard work in factory is not idle time but waste the time with any production in factory is idle time due to delay of material or any laziness of laborers or any other reasons.  Employer has to pay for this waste time also. So, idle time is loss of business. We can divide idle time into two main parts.

1. Normal Idle Time

This is that waste of time which we can not stop because it is normal and producer has to pay laborers for this idle time. For example :

a) Walking time from one department to other department.

b) Consuming time to start any job in factory.

c) Consuming time for fulfilling personal needs like drinking of water, refreshment and rest.

d) Consuming time to set the machines.

Treatment of the Cost of Normal Idle Time

a) It must be charged as indirect expenses in factory. For example, if a laborer gets Rs. 1 per hr and he spend 8 hrs in factory  and his total wage will be Rs. 8 but he utilized his productive time 7 hrs, then direct labor cost will be 8 hrs X Rs. 1 = Rs. 8 and 1hr will be overhead of idle time and Rs. 1 per hr idle time will be written in factory expenses in cost sheet.

b) We can also increase the cost of labor  rate. with following way


If a labor works for 8 hrs, he gets = Rs. 1 per hr

If a labor works for 7 hrs, he gets = Rs. 1 / 8 X 7 = Rs. 1.14 per hr

Now labor cost will increase by 0.14 paise

2. Abnormal Idle Time

This is that wastage of time which we can stop by good supervision.

a) waste of time due to inefficiency of engineers.

b) Power failure

c) Delay of  supply of material to factory

d) Strike and lockout

Treatment of the cost of Abnormal Idle Time 

Wage for abnormal idle time is loss of business and it must be transferred to costing profit and loss account.

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How to Educate Your Child at Home

After starting private and correspondence education system in India. Large number of children learn at home. At that time, it is very necessary for parents to know the steps and tips to educate their child at home. For this, both child and his parent have to understand the system of home education.

1. First of all parents should make the habit of child to self study in home. It is not necessary to give exam books, but many other interesting book can read as enjoy. But, slowly, it will become the hobby of child.

2. Internet broadcast many channels. Under your own care, you can help child to subscribe some good educational channel on YouTube. More than 2 million channel, you can find on YouTube and almost all educational. Your child can learn everything from YouTube from accounting to mechanical engineering. One of main category of YouTube is YouTube EDU. After this, there is no need to see TV for getting education at home. Even, I also watch youtube edu.

3. Give your personal time to see whether your child is studying or wasting the time on the net or just playing games. Your given time to your child is real way to educate your child at home. Even, if you have some free space in your home. Make your own kitchen garden. Fix your child's duty to water the plants. With this, your child learn the discipline and if your child does not water to the plant on the time, give some punishment. It will be benefited for your child.

4. Buy some good and educational movies and to educate your child with these movies. Even you can buy Ramayana and Shri Krishna's VCD and it has lots of education which your child learn at home.



5. Buy some educational toys and other equipments. Some technical equipment automatically starts and provides good education to children.

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Incentive Wage Plans

When information of increasing wage with incentive plans is given to employee or worker, worker's foot does n't touch the earth due to pleasure. When he shares same information with his family, all family members also feel happy because with these incentive wage plans, family's standard of living will rise and they can also live their life with luxury and prosperity. Children will also burst into laughter if they will get more pocket money from this future incentive.

But other side, to calculate correct amount of incentives from incentive wage plans is the headache of company. It is more difficult, if a new fresher joins for calculating and making payroll of each employee and worker. So, solving company's problem, we are writing the tutorial on incentive wage plans

What is Incentive Wage Plans?
________________________________

Incentive wage plans are extra wages in the form of monetary and non-monetary ways for increasing the efficiency of employees and workers. It is also known as bonus to workers.

What are things included in Incentive Wage Plans?
_____________________________________________

In incentive wage plans, free house facility, free education of children of workers, free medical treatment and other excess money gifts.

 how to calculate incentive wages in it?
__________________________________

There are about 10 incentive wage plans and these plans were made by experts of management fields. But we are taking first three plans in this part of tutorial for calculation.

1. Halsey Premium Plan

This incentive plan was made by F.A. Halsey in 1891. It formula is given below

Total Wage = Taken Time X Standard Rate + ( Saved Time X Standard Rate) X 50/100

Calculate the wage with incentive of a worker from following information.

Standard time to produce units 250 hrs.

Time taken to produce the units 220 hrs.

Hour rate of wages Rs. 4 /-

Method of payment Halsey premium plan

solution :

Wage = Taken Time X Standard Rate = 220 X 4 = Rs. 880

Incentive Wage or bonus = Time saved X Standard Rate X 50%

 = 30 X 4 X 50/100 = 60

Total wage = Rs. 880 + Rs. 60 = Rs. 940


2. Rowan Plan

This incentive wage plan was made by James Rowan in 1901. Formula of this plan is below.

Total Wage = Time taken X standard rate  + ( time taken X time saved X standard rate ) / standard time

For Example

A worker takes 12 hrs to complete a job to time wage and 9 hrs on a scheme of payment by result. The rate of payment is Rs. 5/- per hr. Calculate his earning if he is paid on the basis of Rowan plan.

Solution :

By analysis, we get the following facts :

Standard time = 12 hrs.

Time taken = 9 hrs.

hourly rate = Rs. 5/-

Wage = time taken X standard rate = 9 X 5 = Rs. 45

Incentive wage or bonus = ( time taken X time saved X standard rate ) / standard time

= 9 X 3 X 5 / 12 = Rs. 11.25

Total Wage = 45 + 11.25 = 56.25

3. Halsey - Weir Premium Plan

This plan was made by G.T. Weir which is improvement of Halsey plan.

it formula is given below :

Total Wage = Taken Time X Standard Rate + ( Saved Time X Standard Rate) X 30/100


Calculate the wage with incentive of a worker from following information.

Standard time to produce units 250 hrs.

Time taken to produce the units 220 hrs.

Hour rate of wages Rs. 4 /-

Method of payment Halsey - weir premium plan

solution :

Wage = Taken Time X Standard Rate = 220 X 4 = Rs. 880

Incentive Wage or bonus = Time saved X Standard Rate X 30%

= 30 X 4 X 30/100 = 36

Total wage = Rs. 880 + Rs. 36 = Rs. 916

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System of Wage Payment

In cost accounting, when we study about labor cost, we have to study two main topics one is system of wage payment and other is wage incentive plans. We are covering both the topic. But in this content, we starts to explain from system of wage payment because all wage incentive plans can also be classified within these two wide categories. Now, understand about how to pay labor?

Laborers are paid with two systems. Both system can be used but same labor can not be paid with both system.

1. Time Wage System or Time Rate System :

Under this system, laborers get wage on the basis of time which is utilized in organisation. This wages may be charged on per hour, per day, per month or per year basis. There is no relation or quantity of output and wages in this method. In India's industry, this method is most popular. Its other name is day wages system or time wok system.

We can calculate wages with following formula

Total Wages = Time taken X Rate

For Example

A worker produced 10000 articles in 7600 hours. His hourly wage rate is Rs. 2 /- . Calculate the wage of the worker when he is paid on the basis of time.

Solution :

Applying the formula, we get :

Wage = T.T. X R

= 7600 X 2 = Rs. 15200

2. Piece Wage System or Work Rate System :

Under this method or system, laborers can get the wages on the basis of their work done. No time element will be used for calculation of wages. Rate is also on the basis of quantity or unit produced. Under this, method, laborer tries to best for producing the products fastly for getting more wages. This method is also called payment by result.

formula

Total Wages = Unit Produced X Rate per unit


For Example :

2500 units were produced by a worker in 1200 hrs. Rate of production is Rs. 3 /- per unit. Calculate the wage of the worker if he is paid according piece rate method.

Solution :

By applying formula, we get :

Wages = units produced X rate per unit

 = 2500 X 3 = Rs. 7500

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What is Motion Study

Like time study, motion study is also useful tool to increase the efficiency. Here, we are defining it. You know that workers can do any work with many ways or method. But to choose the best way out of alternatives is called motion study. For this, cost accountant has to maintain the data of all the activities of workers. With this study, productivity can be enlarged and inefficiency  and wastage can be diminished.

In motion study, we first of all, note the activities of laborers in work place. With the help of stop watch equipment, spending time on per activity is noted. After this, we have to take decision of activities which we have to stop. This study or analysis determines prime method of doing any activity in factory. Sometime software engineer can make the work design relating to workplace arrangement and adjustable chair for workplace.

Benefits of Motion Study

1.  It grows the ability of workers because apply of good methods, using of good tools and stopping of unnecessary activities.

2. Life of machine can be increased.

3. It reduces exhaustion of workers.

4. It decreases labor cost due to less wastage in factory or plant.

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How to Participate in Class Discussions

Class Discussions among Students

Class discussions in a college or school class is the best technique to increase the confidence of students. But, I can say from my past experience that some shy and diffident students fear from this and do not participate in class discussion. This is bad thing because sometime, it may not only adverse effect on your final grade but also on your overall personality.

Here, I have given easy steps to participate in class discussion which will make you perfect to talk freely in classroom.

1st Step : If you know already on what topic, students have to discuss, prepare it with related books and facts from google search. If your teacher has written any notes relating to this, you must read them.

2nd Step :  Just copy and paste of discussion material from other source will not be better for your proficiency on the matter. Add something your own in notes of discussion in class.

3rd Step : This is just discussion. So, never fear, if you don't know anything about discussed question. You can express your own views. I remembered once, I had participated in teacher's discussion where each teacher had to discuss 1/2 daily on a specific educational topic. Sometime, I also did not know the question but, I listened something on that matter, so, I clearly explained what I knew, and some of other teacher felt happy to listen these new things which they did not know. So, the discussion was successful.

4th Step :  Never forget to ask the question in class discussion. Your given question may open closed doors of knowledge and a new invention may happen in that discussion.

5th Step : Before answering any question, listen the discussion of other your classmates.  Sometime, it may be helpful for you to answer question more correctly. Also don't show anger or negative view on other participators.

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Work Measurement System

In cost accounting, work measurement system is a tool to check the performance and Efficiency of any laborer before giving him wages. There are many ways to measure works of laborers but one of simple technique is time study. Except this, predetermined time management system, estimations and work sampling   can be used for measuring the work of workers.

Predetermined Time Management Systems

• Predetermined Time Management Systems (PTMS) or Predetermined Time Systems (PTS) is made on the basis of past experience in different factories of same company. These measurement systems use minute units of measure. The task at hand is analyzed and split into its fundamental human activities, each of which is then assigned an amount of time that it should take, which are then added together to arrive at the total amount of time for the task.

Estimation

Estimation is on the basis of technical know-how. Some advance computer software can be used for estimating or calculating the best probability of work measurement. Estimation involves using statistics to develop a general idea of how long a particular type of job will take.

Work Sampling

Work sampling is just take sample out of universe about  how much time the worker puts into a specific task. After this, it applies on whole factory's workers.

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What is Time Study

Time study is the method of measurement of laborers' work. In time study, we determine the time for completing the work. There are many activities are included in time study. For calculating time for doing work, we include the average time of normal laborer. We also care of rest time and other spare time for drinking water and refreshment.

In time study, first of all we analyze all the works of company. After this, all work's methods are convert in standard form. In end, we note the actual time of work which has to be done by worker.

Aims of Time Study :

Main aim of time study is to increase the productivity in limited working time. It can be used for calculating wages and other incentives. It also increases the efficiency of worker. Time study can be utilized for making labor cost budgets.

For Example

A time study was carried out in a company for 10 hrs and the following information was generated :

Produced units  350

Waste time  15%

Performance rating 120%

Allowance time 10%

What is standard time for the task?

solution :

unit produced 350

time spent 10 hrs

idle time 15%

observed time per unit in minutes

10 X 60 X 85 % ( Work time) / 350 = 1.457

Time per unit is 1.457 minutes when performance rating is 120%. Therefore normal time per unit at 100% performance rating is :

Normal time = 1.457 x 120 /100 = 1.748 minutes

allowance time = 10% of standard time

Therefore, standard time = 1.748 X 110/100 = 1.923 minutes

Alternatively, standard time may be calculated as follows :

1.748 X 100 /90 = 1.942

From above example, we understand that with historical data, we can calculate standard time for doing any work. So, it is very necessary to record each and every activity of laborers on the basis of time.

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IRDA and SEBI will have to Transfer Surplus Fund to Government Accounts

The Economics Times and business standard's  big accounting news is that The finance ministry has asked market regulator Sebi and insurance watchdog IRDA to deposit their surplus funds with the government account because, both Comptroller and Auditor General (CAG) of India and parliamentary are suggesting to do this.

Benefit of This transfer of this surplus Fund

1. # After this,  Rs 1,800 crore of surplus funds generated by financial sector regulators through fees and penalties on companies can be used for developing activities.

2. # More control can be done by public of India.

3. # It will improve the regulators’ accountability.

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Creative Ways to Teach Accounting Equation

If someone asks me about the creative ways to teach accounting equation, I can give the answer with following way.

1. Assets always equals to liabilities.

Total Assets = Liabilities + Capital

Capital = Assets - Liabilities

2. Student can ask why assets always equals to liabilities. Ans. because, initial capital will be transfer from one asset to other asset and also other debt liabilities will be transfer from one asset to another asset or capital may transfer to liabilities or liabilities can be transferred into capital. All things, will only answer, asset = capital + debt liabilities.

3. Assets are just like your rights but you will have also same responsibilities which are the liabilities.

4. Just go to white board and write assets = liabilities, is very easy. But to teach this accounting equation, you have to use your brain. You can say, " Dear students, go to market and see different shops. You will see stock, shop building and other equipments. All these things are assets. You know how all these things in that shop. All these things in shop because, his businessman has invested his money for buying them. It means, capital is behind all these things. If you buy any thing, either your capital may be affected or not but both side of accounting equation will be affected. Because, all money is not of businessman, some money is borrowed by businessman.

5. Always, remember that every transaction will be adjustify by increasing and decreasing two items of one side of accounting equation or two side of accounting equation but in end balance of accounting equation will be equal.

Related : Is There a Fun way to Teach Basic Accounting?

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Hybrid Securities ( Finance )

In finance, hybrid securities are those securities which have both the qualities of debt and equity shares. These securities can hybrid because it can easily convert into equity shares and its return on investment can easily be calculated in advance.

Examples of Hybrid Securities

1st : Preference shares are hybrid securities because its dividend is fixed and not affected with the current earning of company.

2nd : Convertible debentures are also hybrid securities because these debentures can be coverted after a certain time period.

Types of Hybrid Securities

 1st : Traditional Hybrid Securities :

These securities are issued on the condition that on conversion time, one hybrid security will convert into one equity share.

2nd : Modern Hybrid Securities :

These securities can be converted in to shares up to 5% discount, All convertible bonds are like modern hybrid securities.

3rd : Basket D securities :

Basket D securities are the wonderful hybrid financial instrument which is mixture of 75% equity share and 25% debt.

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Steps to Control Labor Costs

Control Labor Cost

In these steps, you will learn how to cut  labor costs for controlling labor cost. There is mixture of many techniques where we control misuse of our resources in labor in the form of idle time or any other things. After this, we can reach a stage where our overall labor cost may reduce.



 Steps to Control Labor Costs

1  In first step, we have to make good working system in which day and night labor time is recorded and total overtime and idle time is counted and try to include all workers in this system. Main aim of first step is to reduce idle cost.


2  In second step, we provide labor incentives under good incentive technique. It will be inspiration for  employee to do work more fastly. It will reduce the cost of labor indirect way.


3   In third step, we review above two steps and change above system of working and incentive system, if the new system is more efficient and effective for reducing cost of labor. 


4   In fourth step, we provide training of employees from experts for reducing the loss due to ignorance of production process or working with wrong manner or unsafe work.


5   In fifth step, we have to praise for employees' achievements. In this, we have to pay nothing, but only speak good words for recognizing the good performance of employees. After this, employees' efficiency will increase and they will do better for reducing labor cost.

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Labor Cost Control

Like material control, cost accountant has also genuine interest to control over the labor cost, but he can not control labor like material control. Both decreasing the number of laborers and wages will increase the cost of laborers because less no. of worker with fewer wages will produce less output and its cost will be more. Suppose, you have to make your building, if you appoint only two laborer but it require for laborer for saving the labor cost, it will be reverse effect be because no. of days will increase and its is also risk of losing of other stock like cement etc. So, optimum use of workers is the way to control the cost of labor. There are also many factors which affect labor cost control.

Factor affecting cost of labor

1 Assessment of man power requirement

Correct assessment of manpower requirement will decrease the cost of labor because they are actually we need, if laborers are more than these no., its excess cost will be suffer by co. and overall cost of labor will increase. To assess of manpower requirement is the duty of personnel department. So, it should be do its duty with best way.

2  Time and motion study

In this study, supervisor records time spent on each job and correct record will reduce excess paid for overtime to workers.

3  Control over idle time and overtime

Idle time is time when worker is not doing any production activity due to delay of receiving the material or electricity cut or any other things. This is loss of business and it will increase the cost of labor. By continuing supply of raw material, review and repair of machines and continue supply of electricity can reduce idle time loss. But some time, these factors are also not under our own control. So, we have to depend on others. Overtime cost also can be optimized by providing good amount for this.

4  Wage system

Wages should be at competitive price. High and low rate of wages will disturb workers and increase cost of laborers. It also is on the basis of time or unit produced.

5  Control over labor turnover

Labor turnover means losing of laborers due to not providing good wages or incentive or any other reason. It will increase the cost of training of new workers and also errors in production. So labor turnover should minimize as soon as revealed.

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Direct Labor Cost Examples

In cost accounting, there is not a hard and fast rule in direct labor cost examples. Different factories or production plants may have different labor cost according to the nature of production. it is the type of labor which is directly related with the manufacturing of product in factory Like people directly working on machines for production of goods. But of main direct labor Cost Examples are being mentioned here.

1. Wages

The amount which is paid by company to laborer for production of products. This is example of direct labor cost.

2. Payment of Subsidised Food

The amount which is paid by company for providing the food at subsidised rates to laborers, will be the example of direct labor cost.

3. Subsidised Housing

If company is getting less rent from worker for providing homes, different between actual rent and taken rent will be the example of direct labor cost.

4. Educational Benefits to Children of Workers

All educational benefit's price which are being given to the children of workers will be the example of direct labor cost.

5. Other Benefits

For showing correct prime cost in cost sheet, we will add bonus, allowances and other parks or benefits in direct labor cost.

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Conference with All Students at World Time Zones

We are fixing the schedule an online conference with students who are living different countries. Following is Different time zones'  chart.

Time : In India, all students can meet me on Google talk with my id vinod@svtuition.org  at morning 8.53 a.m. in next 21st august 2010

Other student like who lives in new york, can also take part in this conference at night 11.23 p.m. in next 20th august 2010.

or see more on above chart. See this chart because this infographic bar chart will clear date and time when will you take part in this conference.

Topic : You can discuss any topic relating to Education.

Related :  Conference Reminder

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Nikesh Arora - Biggest Loss of Indian Human Capital

One man who can teach millions - Nikesh Arora

In accounting, human capital means the group of highly intelligent and smart person who are very few but they can contribute his knowledge at  large scale for removing India's poverty, unemployment and many other big problems. One of biggest Indian Human Capital is Nikesh Arora. But it is loss of India' human capital because he is now serving in USA Company instead of working in India. This content is just for finding the reason behind this. In India, there is top class Engineer Institute, CA institute, Medical Colleges and business schools. India has become top of education in the world. But, human capital is shifting from India to USA or other European countries.

If I start to do calculation of its accounting, I say with sad that we Indians are losing 200 Billion Dollars per year  for just shifting of Nikesh Arora and like others who are making planning to settle after doing CA, MBBS, MTech from IITs. and other higher qualification. As teacher of India, when somebody say me that your country is poor country, I feel very anger for this. Why are we poor? Reason is clear, our best human capital is not being utilized for India's development. It is problem of India and solution is also in the hand of Indians. Here, I am not  saying, NRI are not doing best and get the opportunity for India. But, is it not good, after getting higher education in India, Indian should do work in India. After this, India can use 200 billion dollars of human capital for India's development.

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Announcements of ICAI - August 2010

1. Sebi right authority to probe PW role in Satyam case: ICAI

Two days after the Bombay High Court’s ruling that market regulator Sebi can proceed with its inquiry against Price Waterhouse for its alleged role in Satyam scam, Institute of Chartered Accountants in India (ICAI) on Sunday said Sebi was the right authority to probe allegations of irregularities against the audit firm. link

2. ICAI takes step to ensure availability of examination application form


With a view to give effect to the decision that may be taken by the Council in the matter, the printing and supply of the examination application forms were staggered purely for the benefit of the candidates for the November, 2010 examinations and hence the delay in reaching the required number of examination application forms to various locations.
While appreciating the difficulties being experienced, however, we may inform that every effort is being made to mitigate this hardship whereby required number of examination application forms will be made available latest by 17th August, 2010.

3. Mention of ICAI allotted firm's registration number in all reports

Requirement to mention the firm registration number allotted by ICAI in all reports issued, including certificates, by members of the ICAI Attention of the.

4. ICAI reported no irregularity in accounts of IPL teams

The Institute of Chartered Accountants of India (ICAI) has not found any irregularities in the accounts or violations of auditing norms by some Indian Premier League (IPL) teams.

5. ICAI has to take a view on measure of amortising liability over a period of five years

Two developments that need urgent and serious consideration are the fresh option given for pension and the raising of the statutory limit for gratuity from Rs 3.5 lakh to Rs 10 lakh. The Indian Banks' Association has sent to the RBI a proposal for amortising this liability over a period of five years, as was done once in the past. The ICAI too has to take a view on this measure. The Income-Tax Department will have to give its nod for deferring the liability. The Basel-II discipline and the need to move over to IFRS do not leave much leeway for manoeuvring.

6. Announcement - ICAI International Study Tour to Australia from 7th-14th November 2010

In order to promote member to member and firm to firm contact so as to under stand the economic and regulatory environment and better understanding of the economic opportunities and to tap the vast market existing for Chartered Accountants in Australia; the International Affairs Committee of ICAI will be undertaking the tour to selected cities of Australia during November 2010 for members, on self financing basis. The Study Tour is a mix of business meetings / net working towards coupled with exposition to the local heritage.

7. ICAI plans teaching via virtual classrooms

The Institute of Chartered Accountants of India soon proposes to start coaching classes for students through virtual classrooms.

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3 Simple Steps to Calculate Labor Cost

Aim of Tutorial : Calculation labor cost  for comparing it with labor's productivity. Labor cost will also needed to know the total cost of production.

1st Step : To Find total amount of wages or total labor cost from financial accounting

From financial accounting records, you can find total amount of wages or labor cost  in which workers' contribution to state insurance and provident fund should be included.

2nd Step : To divide total amount of wages into Direct Wages and Indirect Wages

According to the identity of employee, classify total wages into direct wages and indirect wages. Sometime a worker does both production work and other work, at that time, use time tickets to find the % of his time for direct production and other works. After this, you can divide total amount of wages into direct wages and indirect wages.

3rd Step : To Transfer direct wages in prime cost and indirect wages to overheads

Make a cost sheet and show direct wages as direct labor cost  in prime cost and indirect wages in overhead.

Related : Steps to Calculate Labor Turnover

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How to Calculate Labor Turnover

To calculate Labor turnover is important for organisation because it completely affects labor costs. This means, % of labor changes after a certain time or be replaced by company. Both things increase labor costs. Repeatedly leaving the job by the labor, accidents, deaths of labors, labor retrenchment are the main examples of labor turnover. So, it decreases the level of production and also production is delayed. It also increases the cost of production.

So, for controlling it, we calculate the percentage of labor turnover by applying following steps

First :  Calculate Average No. of Employees during a period


First of all you have to calculate average number of employees during a period. It can be calculated by totaling of no. of employees in the beginning of year and no. of employees in the end of year and then divided by 2. Employees in the beginning of year can be found by checking of labor registers and employees in the end can be found through physical verification.

Second : Determination of Changes in Labor


After taking first step, following second step should be taken:

a) To find the employees who left the organization.

b) To find the employees who are required by organization.

c) To find the employees who are the newly appointed in the year.

Third : Apply the suitable formula of Labor turnover


Following are the main methods for calculating the labor turnover. You can use any best formula by using any one method in your organization.

Ist method

Labor turnover with separation

= No. of employees left during the period / Average no. of employees during the period X 100

2nd Method Labor turnover with flux

= number of required employee + no. of employee left the job / average number of employee X 100

3rd Method labor turnover with Optimum

= number of required employees + number of employees left the job/2 / average number of employees X 100

4th Method Labor turnover with replacement

= number of employees appointed newly / average number of employees X 100

For Example

From the following information, calculate the labor turnover rate

a) With separation method
b) With flux method
c) With optimum method
d) With replacement method

Number of workers at the beginning of year = 3800

Number of workers at the end of year = 4200

During the year 40 workers left while 160 workers are discharged. 600 worker were required during the year, of these 150 workers are recruited because of leavers and rest are engaged in accordance with an expansion scheme.

Average number of workers during the year = 3800 + 4200/2 = 4000

a) With separation method

LTR = 200/4000 X 100 = 5%

b) With flux method

LTR = 150 +200 / 4000 = 8.7%

c) With optimum method

LTR = 150 +200 /2 / 4000 X 100 = 4.3%

d) With replacement method

LTR = 150/4000 X 100 = 3.75%

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How to Treat Mental Retardation

To treat mental retardation of children is needed because they can not be independent and always remain a burden on others due to their mental retardation. I am a teacher and being a teacher, all children are my own. As teacher, it is my basic duty to provide my all good knowledge. But I am sad that mentally retarded children are not taught in classroom by their teachers due to disturbing. So, I am explaining a very simple method to treat mental retardation which is detected by Indian scientist.

In old time, if someone faced the problem of mentally handicapped, Indian scientist used to treat him with natural cure or naturopathy. Same treatment what I’m teaching to you. I will get two benefits from this, I feel pleasure when a child will recover from this disease. I will think, by writing this useful content, I could help the millions of parents and their children who are searching google by writing same query and did not help but just waste of money and time due to not getting best treatment of this disease. I also understand the problem of these parents. Second, when I will find the response that parents had done all treatment through my system and his child is normal now and is going to school like other students, At that time, I will feel enjoy.

Following are the main steps to treat mental retardation:

First Step


Regimen

Due to Mental retardation, the minds of children become vulnerable. So, parent should not give anything which is detrimental to this disease, If you miss on the first step, your child is not going to be treated, even if you visit millions of doctors in this world. Now, I am giving some of examples of these things:

1.  Parents should not feed meat, chicken, eggs and other non-vegetables to mentally retarded children because these kids' all other organs also do not function smoothly for digesting these hard meats. Without digesting, it will become poison for them.

2. Mentally handicapped are so sensitive of external environment. So, never frighten or anger with these children.

3. Never give Buffalo milk; it will not be helpful for development of brain.

4. No to use vegetables which  is produced from chemical fertilizers.

Second Step

Brain Exercises

The more you will make exercise, the mind of mentally disabled children will the more quickly come out of this Disease. With Brain Exercises and its practice, nerves of brain will open and it will let the pure air to brain of mentally retarded children. Remember, not to much pressure on brain. You can use song, meditative music, yoga and games for brain exercises.

Third Step


Useful Things for Eating

Following Food will provide bigger strength to the brain of mentally retarded children

1. Ten holy basil leaves should be given for eating to these children daily and they gain high memory with this.

2. Cow milk is best food for mentally retarded children.

3. Myrobalan also cures this disease.

4. Peppermint

5. Carrot juice

Fourth Step


Other Things

There is very important to take care of these crippled children. If the husband and wife are both doing full time job and think that his child's mental disability can be treated in hospital, then they are forgetting because treatment of such child is only with parent's Love and service. So, it is my humble request that either mother or father should leave the job for child’s personal attention.

Related : How to Teach Mentally Retarded Children 

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Answers in Twitter Conference

Have you question regarding techniques of material control ? Send direct message @svtuition2009 in twitter and get the answer on twitter.

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How to Sign in to multiple Google Accounts

Recently Google account has been amended and all those who have more than one google account can see the option sign in to multiple Google accounts. This is very useful button and almost all the users have showed the need of this button by asking in GMail forum.

I am not looking for work-around at the moment. My question is: is the Google team doing anything to address the issue of multiple accounts at a higher level?

Having two GMAIL accounts has proven somewhat difficult to manage. It is easy enough to sign in and out, of course, but other features are more difficult/impossible to make work.

Now Google solved all above problems of Google users and created the button of sign in to multiple Google accounts.

How to Sign in to Multiple Google Accounts

1st Step : Enable the multiple sign in setting

If you'd like to be able to sign in to multiple accounts in the same browser for specific products, you can enable the multiple sign-in setting. This will allow you to sign in to more than one account using the same browser session. You can only sign in to a maximum of three accounts at a time.

Google Account with primary Email >> Multiple sign-in ( Edit)

2nd Step : On the radio button of On - Use multiple Google Accounts in the same web browser.

You have to click on the radio button for using multiple google accounts in the same browser and you also have to Select each of the check boxes below to confirm you understand how to use multiple sign-in:

a) The account you’re currently using is displayed at the top of most Google product pages, or at the bottom of most pages on mobile devices. Always check to make sure you’re using the account you want.


b) Not all Google products support multiple sign-in. When switching between Google products, the account you’re currently using may change.

c) Google products not listed above will default to the first account that you signed in to using your current web browser session.
d) Offline Mail and Offline Calendar will be disabled. You may lose any unsent mail.

3rd Step : Sign in Another Google Account

After clearing above step and save, you can sign in multiple google accounts and for opening any other google account, you have to write your google id and password.

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How to Become Mutual Fund Advisor in India

Problem

Respected Sir, in present atmosphere regarding to become mutual fund distributor, after the SEBI, NSE circular/Notification, we are confused, how to adopt mutual fund agent as career, please suggest the path to become mutual fund advisor, AMFI has been banned for produce new mutual fund agent.

Solution

Sebi has now made it mandatory for mutual fund distributors to pass the certification test (advisors module). It means if you want to become mutual fund advisor or agent, you have to clear certificate test. From June 1, 2010, certification program for mutual fund distributors is being managed by National Institute of Securities Markets (NISM). NISM is a public trust, formed by capital market regulator the Securities and Exchange Board of India (Sebi).

About the Exam. for Mutual Advisor

The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 50%. There shall be negative marking of 25% of the marks assigned to a question.

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Scrap in Inventory

When we produce any product, we have send the raw material in different manufacturing processes. At every manufacturing process, some material may be rest or residue which can easily recycle. This residual material will be scrap.

Treatment of Scrap in Cost Accounting :

1. If scrap cost is very low :

No, need to record. Its loss is suffered by products. Earning from selling of scrap will be other income.

2. If scrap cost have some amount which can not be ignored :

Calculate net realisable value scrap =

Total sale of scrape - Net sale and distribution expenses of scrap

Now, we deduct correct cost of material = Total cost of material - net realisable value of scrap

3. If scrap is identified with a particular job or process :

When scrap is identified with a particular job or process and its value is significant, the scrap account should be charged with full cost. The credit is given to job or process concerned. The profit and loss account in scrap account, on realisation, will be transferred to costing profit and loss account.

Scrap Report

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Weighted Average Method

Under weighted average method of material issue, we calculate total cost of material and then it is divided by total units of our material. After this, we can get weight average price and we issue the material at this price. In weighted average method, we give the weight on quantity of material issue, so it is better than simple average method, because with giving weight, we can obtain more representative price of material bought in different times.

Simple Steps to Calculate Weighted Average Price of Material Issue

1st step : To calculate total cost of material

500 units bought @Rs. 3 = 1500
600 units bought @ Rs. 4 = 2400
200 units bought @ Rs. 2 = 400
----------------------------------------
total cost of material =  Rs. 4300
______________________________

total no. of units = 1300 units

Weighted Average Price = Total cost / total units = total of WX/ total of W

= 4300/1300 = Rs. 3.30

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Simple Average Method

In cost accounting, we can calculate the value of material issue on the basis of simple average price method. Under this method, we can calculate the total of unit cost of each purchase and then it is divided by total no. of units.

Suppose, you have bought the material

1st time 500 units @ Rs. 3
2nd time 600 units @ Rs. 4
3rd time 200 units @ Rs. 2

Material issue with simple average method = total of unit cost of each purchase/ total no. of units

= 3 +4+2/3 = Rs. 3

Now, all material will be issued from store on the price of Rs. 3. This method is more benefited than FIFO and LIFO, if there is very small fluctuation in the buying prices.

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Conference Reminder

Again, we are reminding to our readers and all those who have problems relating to techniques of material control in cost accounting, can discuss with us tomorrow  at twitter because we are starting next conference on twitter.

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