Adidas Company in Sports Industry Coursework Example | Topics and Well Written Essays - 2000 words

Adidas Company in Sports Industry - Coursework Example To Adidas Company, investing such a large number of amounts of energy into the entire vocation thing and severe holding fast to specific schedules during life don't agree with the general desires. Rather, the organization is about energy and a conviction that one should push own cutoff points all over and all the occasions. It is sports as the establishment of everything that organization does; it is about the reclassifying the benchmark for finding and forming the future; it is the reasonable play which makes the reason for company’s execution among comparable organizations (Our desires, 2015). Every one of these contemplations make the mission of Adidas Group as the organization which endeavors to be the worldwide pioneer in the arrangement of sports merchandise and the administrations of which are based on the energy for sports and a donning way of life. Estimations of the organization portray the ideal culture, which are the advancement of sports as the establishment of al l Adidas does, enthusiasm for consistent moving, development and the improvement, the respectability approach dependent on such attributes as trustworthiness, receptiveness, moral and reasonable demeanor toward others, and the comprehension of the assorted variety of thoughts, qualities and interests in building the company’s brands. Simultaneously, nonetheless, one ought to comprehend that vision and mission which are the visual piece of the company’s methodology are not the same as the powers that install development. As indicated by (Dobni, 2010), advancement is prefaced available direction, the production of significant worth and characterizing of the new open door space.

Accounting Theory Cga Free Essays

Slide 1 ACCOUNTING THEORY CONTEMORARY ISSUES (AT1) MODULE ONE Slide 2 ACCOUNTING UNDER IDEAL CONDITIONS Part 1 †Foundation things re the course Part 2 †Present worth bookkeeping under sureness Part 3 †Present worth bookkeeping under vulnerability Part 4 †Reserve acknowledgment bookkeeping Part 5 †Examination question models Part 6 †Historical cost bookkeeping Lecture by: Dr. A. L. We will compose a custom article test on Bookkeeping Theory Cga or then again any comparative point just for you Request Now Dartnell, FCGA Year 2009 †2010 2 Slide 3 PART 1 Foundation Items re the Course Different Course Financial announcing is critical in our regular daily existence. You have known about the numerous anomalies that have happened lately which principally included monetary detailing. Budgetary revealing is constrained by guidelines set with the goal that the best exposure will happen. To completely comprehend the significance and need for these guidelines, you have to value that they are structured in order to exchange off the clashing premiums of voting public influenced by them †normally financial specialists and supervisors. Note cautiously that Standard Setting bodies make these exchange offs through fair treatment. That is, norms are set in interview with significant electorates. Gadgets to accomplish fair treatment remember portrayal of significant electorates for the standard setting sheets, supermajority casting a ballot, introduction drafts, and open gatherings. As such, the issues and themes are very much confirmed before their execution. Consequently the course manages standard setting of bookkeeping strategies by which you are guided in your work as a bookkeeper. Slide 4 Second, understudies frequently inquire as to why they need a bookkeeping hypothesis course. We have to comprehend the reasoning and activity basic the necessities for the principles we follow. All exercises in life have a hypothetical foundation. For instance, how a cook readies a feast in a café. In the event that the hypothesis behind the dinner is acceptable, clients return. If not, they feast somewhere else. How you cut the garden has a hypothesis. You follow a hypothetical arrangement for the activities you pick. So with bookkeeping we have speculations and to comprehend them is critical for the bookkeeper. Why we do things the manner in which we do. We would prefer not to follows standards which we don't comprehend. furthermore, Slide 5 Third, understudies inquire as to why the course essayist alludes such a great amount to shares, the securities exchange, financing and related issues. In the event that you consider any endeavor it has account included. So the essayist alludes a lot to shares and the market. 3 Financial establishments are all through the world. For instance, other than banks in all nations, there are numerous enormous stock trades, even in Socialist nations like China. Further, littler organizations and associations, for example, not-revenue driven substances, acquire financing from banks and acknowledge associations, just as different wellsprings of cash, for example, gifts from general society. Accordingly, stocks, bonds, money related foundation credits, and other financing, are the existence blood of our monetary action. Without these wellsprings of assets our economy as we probably am aware it would not endure. In this way, it is imperative to you as a bookkeeper to be completely mindful of the monetary action we experience step by step and we should give great budgetary data to the individuals who have put away or lent their cash for associations to exist for our financial advantage. Slide 6 Objective To summarize: †¢ The Course rotates around setting of gauges for arrival of data for financial specialists and banks. †¢ Standards can be set by different administrative bodies †CICA, Securities Commissions, Stock Exchanges, and different gatherings. †¢ Our goal is to give the most ideal data to the perusers of the reports. Slide 7 Standards in the Future As you most likely are aware, money related announcing for traded on an open market firms in Canada will be as per International Accounting Board (IASB) norms from 2011 on. This course incorporates inclusion of IASB guidelines, in the reading material, the modules, the assignments, and survey material. We do have a number which are as per IASB measures yet the errand is required to be finished by 2011. While the present version of the reading material has hardly any references to Canadian principles, inclusion of current Canadian guidelines is remembered for the modules, just as, the survey and task material. Inclusion of certain United States measures is additionally included where these vary essentially from, or are ahead of time of, IASB gauges. The entirety of this material is examinable except if explicitly set apart despite what might be expected. 4 In this course, material identifying with explicit bookkeeping norms is to a great extent (however not totally) at a calculated level. Luckily, at this level, most gauges in Canada, the United States, and globally are comprehensively comparative, along these lines diminishing the measure of detail you should learn. Nonetheless, there are some significant contrasts, especially as for current worth bookkeeping, and these will be accentuated where suitable. No doubt from 2011, current Canadian measures will never again be pertinent or examinable. Future variants of this course will incorporate just IASB and important United States measures. Slide 8 History and Research There is a fascinating overview on the historical backdrop of bookkeeping and research in the initial 15 pages of the content. Go over them to get some foundation for the course. Theme 1. 2 of the module notes identifies with ongoing advancements in budgetary bookkeeping. It gives a superb record paving the way to the present downturn and furthermore the impact on reasonable worth bookkeeping which we will manage in the course. Peruse it cautiously. It is level 2 and you should know it in a general way. Slide 9 Information Asymmetry †a significant theme The point of the course is to manage data financial aspects. The topic identifies with the way that a few gatherings have a data advantage over others in business exchanges. In the event that one gathering is preferred educated over the other(s), at that point it is alluded to as data asymmetry. We will manage these themes later yet for the occasion, data asymmetry comes in two structures: Adverse choice and Moral risk. Slide 10 †¢ Adverse choice identifies with the ownership of more noteworthy data by one gathering over the other. †¢ Adverse choice in the protections advertise comes from insider exchanging and particular arrival of inside data, which is discharging just the data the administrator chooses to discharge. Terrible news might be retained from open utilization. †¢ Full revelation is the cure. 5 Slide 11 Moral peril identifies with avoiding with respect to directors, or any circumstance where an individual can't be seen by the utilizing party. For instance, a trustee for a bond issue could avoid if not doing his/her obligations as they ought to be. †¢ For the director (representative) cooperation in the products of the tasks, for instance, benefit sharing is a remedy. Slide 12 Present Value Accounting †¢ An English financial matters educat or named Hicks said the best approach to decide the genuine change in financial aspects of the firm is to take the distinction between net resources toward the start of the period and toward the finish of the period and that would be your benefit. That would be showcase esteem. †¢ If the net resources have expanded, your riches has expanded and you have made a benefit. On the off chance that they have diminished, you have endured a misfortune and your riches had diminished. Your welloffness has changed Slide 13 †¢ How would we measure this well-offness of the firm? The current worth framework is likely the most ideal method of estimating the adjustment in the estimation of the benefits and comes nearer to the valuation of the market an incentive than do different frameworks. In genuine terms †what is it worth today and what will it be worth later on. We need to begin with present worth bookkeeping. It is hypothetical, no uncertainty not completely achievable, yet an objective at which we can shoot. While a full introduction of present worth bookkeeping would be hard for an association it very well may be considered from a perfect circumstance perspective. Slide 14 Current Value Accounting However, before pushing forward, on page 4 of the content the term current worth bookkeeping is utilized. This is a general term used to allude to takeoffs from our as of now utilized recorded cost bookkeeping. It is intended to build importance of budgetary data. Present worth bookkeeping (likewise called esteem being used) is a takeoff from verifiable expense. The other takeoff is reasonable worth bookkeeping (likewise called leave worth or opportunity cost). Reasonable worth is the sum the firm could sell a benefit for or the expense to discard a risk, that is, advertise esteem. A ramifications of esteeming resources and liabilities at circumstance cost is that management’s achievement is 6 at that point assessed by its capacity to create more benefits from holding resources and liabilities and utilizing them in the business as opposed to by selling them. Slide 15 It ought to be noticed that under perfect conditions, present worth and market esteem are equivalent. This module focuses on present worth bookkeeping, since this is the basic premise on which market esteems are resolved. In any case, when perfect conditions don't hold, the current estimation of a benefit or obligation may contrast from its reasonable worth. It ought to likewise be noticed that for some, benefits showcase esteem isn't promptly accessible. Consider steamships, what is their worth? The quick ships were an ideal model when the BC Government attempted to sell these vessels a couple of years back. There was no market level at their deal cost. Additionally, intangibles, and force plants, are different models. Markets for these sorts of things are â€Å"incomplete†. Slide 16 Present Value Calculations and Limitations First, you have done present worth estimations however to invigorate your memory there are two models in the reference section. Be that as it may, in the event that you

6th Grade Essay Sample Ideas - What Is The Best Way To Research A Topic?

6th Grade Essay Sample Ideas - What Is The Best Way To Research A Topic?Writing a 6th grade essay is similar to writing a 5th grade essay, but with a few added complexities. With the more advanced understanding of English as a Second Language (ESL), students are more accustomed to writing and reviewing essays in their chosen field. Below are some tips for writing a 6th grade essay:More importantly, you must have the academic skills to bring out and deliver an essay with originality and brilliance. A student can easily realize that if the writer fails to deliver a well-thought-out and compelling topic, all efforts will be wasted. So, if you write with passion and character, you will automatically command the respect of the reader.One of the most important ideas for developing your creativity and unique essays is writing a research paper. However, with the increasing competition in the school, students are being taught how to generate a whole topic from the four modules that are availa ble at school.At times, students can lack confidence to produce their own research paper because of the difficulty in collecting the assignment data. The student can actually find various research resources in the internet or in private libraries. Through these resources, they can easily collect relevant information to make their research papers stronger.There are different ways in which a student can research, analyze and present their assigned research findings. If you want to write an essay with distinction, remember that it is essential to choose a subject that you would know more about.If you are not sure of your information, start your research from the Internet or other online sources. Alternatively, you can search for books that offer concise and rich content. Aside from searching online, you can also review books that are in public libraries.Through the online resources, you can easily search for information on the topics that you would like to write. After that, you can us e these resources to help you gather the information that you require. Even then, when you have gathered the required information, you can present the information in a clearer manner in order to persuade the reader into your thesis.

Video Games And Its Effect On Children - 1181 Words

Thinking about gamers who spend countless hours playing video games, most people usually wonder why these individuals choose not to do something more productive rather than burning their brain cells playing mindless video games. What most individuals don’t understand is that playing video games do not only affect behavior, but trains the brain to think and comprehend things better that an average person. Video games train the brain to see things that most people cannot see and are proven to make decisions faster without much complication. Many people believe that â€Å"Playing video games for long periods of time can damage your eyesight† says Dr. Bavelier, who studies the function of the brain and applies this theory to the test by convincing people to take a simple eye exam. There were two groups of people, one group were people who don’t play video games, and the others were those who were considered an average gamer. After several attempts, it was easy to se e that a gamer’s vision was much better than the average person. This experiment shows that screen time is not a negative consequence and because of this astonishing result, doctors are in the progress of using videogames as a therapy to help those with poor vision. Many people also believe that â€Å"Games lead to attention problems and greater distractibility† says Dr. Bavelier. Dr. Bavelier and her colleagues attempted an experiment proving that games are in fact, not distracting therefore, created a game that causes theShow MoreRelatedThe Effects Of Video Games On Children Essay1279 Words   |  6 PagesIntroduction Video games have always been a controversial type of entertainment, that may come from how relatively new video games are compared to other mediums of entertainment[1]. Maybe because of that when a violent crime occurs and the culprit has played a lot of games the media is quick to point at violent games as the reason for the crime, but is that true or are the media just biased or looking for quick views, this report aims to answer that question. Do games affect our way of thinkingRead MoreEffects Of Video Games On Children Essay1357 Words   |  6 PagesScreening to a halt: Are parents in New Zealand able to identify signs of dependency or addiction in their children due to over use of screen-time from the recreational use of video games? Digital technology and the vast amount of video games have increased the amount of screen time consumption in contemporary New Zealand society. The saturation of smart phones, ipad’s, tablets, computers, game consoles and the Internet are devices with the means of connection to gaming. Many New Zealand families integrateRead MoreThe Effects of Video Games on Children1288 Words   |  6 PagesThe Effects of Video Games on Children Technology today has progressed rapidly from generation to generation. Children and young adults are both into video games and the latest gadgets out there. Video games have been available to customers for the last 30 years. They are a unique way to entertain individuals because they encourage players to become a part of the games script. Victor Strasburger an author of â€Å"Children, Adolescents, and the media† stated â€Å"The rising popularity of video games hasRead MoreThe Effects of Video and Video Games on Children2043 Words   |  8 Pagesaction, usually in a cartoon, movie, or video game. For many of us, Disney is where we refer back to early forms of animation with the idea of using thousands of consecutive drawings; through Disney, we can now see how far this idea of breathing life into static objects has advanced. Today, animation is becoming more and more realistic. With highly advanced technology and computer programs, it has become easier for simple cartoons to develop into what children see as real life. These animated cartoonsRead MoreThe Effects Of Video Games On Children1548 Words   |  7 PagesVideo Games Introduction Today video games are a staple in most households. It is pretty amazing to know that the first creation of games date all the way back to the 1900s. They were not originally invented to make a profit, but to give patients something to do while waiting in the lobby of an office. One inventor had a simple idea of using the monitor not just as a television set, but as a way to play games. College students were just playing around with equipment and happened upon something greatRead MoreVideo Games And Its Effects On Children927 Words   |  4 PagesVideo games are a more interesting form of entertainment for the simple reason that players may become part of the game’s plot. Video games were invented for many years now. However, the current variety of games raised concerns about how they affect the children s behavior due to the fact that the games are becoming more sophisticated. Children spend most of their free time playing video games. Sometimes children refrain from completi ng important duties and dedicate all of their time playing videoRead MoreVideo Games And Its Effects On Children940 Words   |  4 Pageswas bored they went outside to play, they created new games, or they played with friends. But, for the past three decades, video games and other digital media have been persuading many adolescents and children to spend the majority of their time playing them. Video games seem to satisfy children’s natural need to interact socially, however more often than not, they lead to social isolation. Overexposure to digital media, such as video games is detrimental to the health and function of a child’sRead MoreVideo Games And Its Effects On Children1519 Words   |  7 PagesVideo games in the 21st century have transformed from friendly competing into guns, explosions, and major violence. Video games are getting away with more violence every year and the games are becoming more extreme. The consistence and severity of violence is at an a ll-time high leading the most popular games in the gaming community to have a ‘mature’ rating due to the considerable amount of violence involved. For example, one of the highest selling video games of all time grossing one billion itsRead MoreThe Effects of Video Games on Children1656 Words   |  7 PagesIntroduction For more than 30 years, video gaming has been a popular activity amongst many of America’s children. With over $63 billion (Reuters, reuters.com) worth sold each year, video games are here to stay. While much controversy has arisen over the subject, video games have benefited the United States of America and its citizens to a great degree. For example, the military and CIA use gaming to train soldiers (Davidson, www.ehow.com), and classrooms use video games to teach students. The potentialRead MoreThe Effects Of Video Games On Children1034 Words   |  5 PagesThe world of today has developed in a way that even children are affected by technology. They enjoy video games in their leisure time and even prefer them to studying that, in its turn, can contribute to their poor performance in the class. These days, video games have become an issue that has brought concern to many people from parents to scholars about their potential effect on the future of children through influenci ng their conduct. They feel that the violent behavior or any other negative consequence

Personal Growth in College Essay - 638 Words

So far, the college experience has made me a changed person. College changed me into a better person on many occasions. I have learned to be more responsible, when it comes down to getting work done. In college you must be responsible. I have also changed my attitude. Moving from high school to college is a big step; if you don’t change your ways for the better then you might not be successful in college. When you reach college then is the time that you become an adult. First off, the college life has changed me for the better. I am much more responsible in many different ways. I had to change my study habits, or should I say I have to get study habits. I high school I never studied, because everything came so easy to me and I could just†¦show more content†¦That’s just one example, there are many more. Another reason college is a big step is because you’re on your own, and you don’t have nobody to tell you what to do, you make your own decisions when it has to deal with getting up early in the morning to go to class, you have your parents or anyone to wake you up, it’s a big step, you just have to stay focus. Third of all, you have to change your attitude toward school. You have to want to finish school; you have to think about the money you are spending to go to school. For example you are paying for every class you take and if you fail a class then you are paying for the same class again. College is a major step from high school. I personally wasn’t ready for college, but this being my second year I understand what I have to do to finish school. I understand more and more why education is a major issue in life, especially a college education. Entering college you have to change your game plan to get where you want to be in life. In conclusion, the college experience has made me a changed person. It has made me a changed person for the better. I have learned a lot, I have learned responsibility. Without responsibility in college you will not make very far. You must get your work done, and be punctual. You must make the right decisions, don’t let peer pressure get to you, try to avoid it. Don’t let college change you for the worst, take advantage ofShow MoreRelatedCollege Education Is Necessary From The Perspective Of Personal Growth And National Development1265 Words   |  6 PagesCollege education is an optional formal learning that occurs after secondary education. College education offers all kinds of majors. Each person chooses their suitable majors according to their own preference. College education is necessary for teenagers because it is good for your future career as it can help you find decent jobs and fostering human capital and facilitating self-development in the view of life. Wha t’s more, the high quality cultivated by college education will promote the developmentRead MoreMy College Career Changed My Life726 Words   |  3 Pages My college career has been a long process. I started attending college right out of high school and during the duration of my course work, I experienced numerous personal challenges. My first challenge was that my parents were unable to help me pay for college. Therefore I had the responsibility to pay for it myself and in order to do that, I needed to work full-time. Being a full-time employee only allowed me to take classes part-time and as a result, my educational career started off slowlyRead MoreLouis Menands Three Theories990 Words   |  4 Pagesbefore are attending college due to the endless opportunities that it provides. Louis Menand, a college professor and the author of â€Å"Live and Learn: Why We Have College,† explains the meaning of college through three theories that have been developed. Theory 1 supports the idea of the sorting-out process that separates the highly intelligent from the less intelligent. Menand’s second theory explains that college provides opportunities for developmental growth, personal growth, and teaches individualsRead MoreBenefits of Studying Abroad1262 Words   |  5 Pagesabroad term length, students studying abroad personal growth, and student studying abroad career incomes. In the findings section of this paper I will discuss how these three charts relate to my research question. What are the benefits of students studying abroad? Because these three charts are implying that the benefits of students studying abroad are but not limited to: abroad term length and the experience, students studying abroad personal growth, and student studying abroad career incomes Read MorePast, Present, and Future: Personal Statement1827 Words   |  7 Pagesprofessional and personal lives throughout his or her program study at their college of choice. In this paper I will go back and give a full reflection on ones development despite the fact looking at the effects of finishing up the degree program of future and current professional objectives. In this paper, I will argue ones interpretations of learning, effects of personal development and growth which do comprise skilled competences and career aims. Furthermore, this paper assesses areas of growth of skillRead MoreWhy Is College Important For College?1521 Words   |  7 Pagesimportance of college may be simply summed up as, unlocking more opportunities. When one reflects on their decision to enter college, this decision may have been highlighted by the potential to explore a subject in greater detail, more importantly a subject matter of your choice. While I approach the final semester of my college experience, I can reflect back and see that this was merely scratching the surface of the importance of college. 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The articles â€Å"Low-Income Students†, â€Å"The Misspelling of OF†, and â€Å"Fixed vs. Growth Mindset† have used examples of the importance of higher education mostly on how it is used or how people act towards it. The most important message the articlesRead MoreStudy Abroad Is Beneficial For All College Students Development1394 Words   |  6 PagesThe purpose of this Literature review is to signal to the reader how study abroad is beneficial to all college students development. The journals make it a point to say that the study abroad programs offered in universities are expanding and participation by students is increasing. Also stated, is professors that wish that their students who are excluded by their major from studying abroad to have a program that allows them to go abroad. This field of study is interesting because it positivelyRead MoreEffects of a College Education1279 Words   |  6 PagesA college education has numerous impacts on an individual other than just a better education. Individuals who have attended college and graduated tend to be more successful in life than those who didnt. There have been studies through the years that provide evidence showing that a college education can be very beneficial to a person and have major impacts on their lives. The most comprehensive review to date on the question of the impact of college is found in Ernest Pascarella and Patrick Terenzinis

Langston Hughes Influence On Harlem Renaissance Essay Example For Students

Langston Hughes Influence On Harlem Renaissance Essay Throughout history there has always been a struggle for power between absolute rulers and the people and somewhere in the middle they compromise at democracy.In the past the people have written documents to that limited the of the king and obtain their natural rights. The Magna Carta became known as one of the first documents to ever degrade the power of a king. Following the Magna Carta came the Petition of Rights, this to limited the strength of the king. Succeeding the Petition of Rights, came the founding of the Bill of Rights. Without boundaries a ruler will abuse his power over the people. Therefore in order for a ruler to lead a democratic government he must have boundaries and regulations to abide by. The Magna Carta became the first stepping stone to a constitutional monarchy in England. The need for this document came about when King John neglected the peoples rights.On June 15,1215, King John was forced to sign the Magna Carta. Thereby, when King John signed the Magna Cart a his power demarcated and his authority lessened. The Magna Carta stated We have also granted to all free men of our realm, on the part of ourselves and our heirs forever; all the subjoined liberties, to have and to hold, to them and to the heirs, from us and from our heirs (Magna Carta sec1). This passage said that people have the right to liberty at all time and the king nor any other person could take that right away. The Magna Carta also dealt with the court and justice system. It declared To none will we sell, to none deny or delay, right or justice (Magna Carta sec 40). It also pronounced if any on shall have been dissiezed by us, or removed, without a legal sentence of his peers, from his lands, castles, liberties or lawful right, we shall straight way restore them to him.(Magna Carta sec52). This document was only the first of three document to limit the kings power. King Charles tried to rule as an absolute ruler, but he was unsuccessful in his attempt. Charles started to take advantage of his people by using force and unjust taxes. Parliament, unhappy with the conditions of the state deiced to do something about it. They wrote the Petition of Rights. this document unabled the king to proceed as he wished. This document states that Parliament has the right to dismiss themselves. In other words that means the king can not tell Parliament they are finished and no longer have the power to do anything. Also Parliament would be called to session at least once every three years. Hence, the king would not be able to completely ignore Parliament and the voice of the people completely. Consequently limiting his power. Another section declared that the people have the right to due process and all ancient taxes are abolished. By obtaining these rights and privileges the people are free to have there life, liberty, and property without a fear of losing any of these without due process. Lastly, the power of the king was limited by a third document, The Bill of Rights. Before William and Mary could become king and queen they were forced to sign the Bill of Rights. In order to persevere the right of the people, they wrote the Bill of Rights. It states that it is the right of the subjects to petition the king. It also said that the freedom of speech and debuts or proceedings in Parliament ought not to be impeached or questioned in any court or place out of Parliament. Therefore the king is not above the law and does not have the power to take away the peoples rights. Every where in the world people are struggling for power, it has happened before, it is happening now, and it will happen again. The absolute monarch will usually fall because the democratic side will have more people and separation of power. Therefore there more than one person to get rid of.Bibliography:

Toyota Target Costing Essay Example

Toyota Target Costing Essay Quality cost measurement under activity-based costing Wen-Hsien Tsai National Central University, Chung-Li, Taiwan, Republic of China Introduction Many companies in the world gradually promote quality as the central customer value and regard it as a key concept of company strategy in order to achieve the competitive edge (Ross and Wegman, 1990). Measuring and reporting the cost of quality (COQ) is the first step in a quality management program. Even in service industries, COQ systems receive considerable attention (Bohan and Horney, 1991; Carr, 1992; Ravitz, 1991). COQ systems are bound to increase in importance because COQ-related activities consume as much as 25 percent or more of the resources used in companies (Ravitz, 1991). COQ information can be used to indicate major opportunities for corrective action and to provide incentives for quality improvement. Traditional cost accounting, whose main functions are inventory valuation and income determination for external financial reporting, does not yield the COQ information needed. While most COQ measurement methods are activity/process oriented, traditional cost accounting establishes cost accounts by the categories of expenses, instead of activities. Under traditional cost accounting, many COQ-related costs are lumped into overheads, which are allocated to cost centers (usually departments) and then to products through predetermined overhead rates. For example, among various COQ-related costs, the rework and the unrecovered cost of spoiled goods caused by internal failures are charged to the factory overhead control account which accumulates the actual overhead costs incurred (Hammer et al. 1993, pp. 155-64). The predetermined overhead rates should be adjusted to incorporate the normal levels of various COQ-related costs, and excess COQ-related costs will be buried in overhead variances. The cost accounting treatment described above cannot satisfy the needs of COQ measurement. Thus, Oakland (1993, p. 210) claims that â€Å"quality related costs should be col lected and reported separately and not absorbed into a variety of overheads†. Prevention-appraisal-failure (PAF) approach and process cost approach are two main approaches to measuring COQ. We will write a custom essay sample on Toyota Target Costing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Toyota Target Costing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Toyota Target Costing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer However, The author wishes to thank the anonymous referees for many helpful comments and suggestions about this paper. The author also wishes to thank the authors of references cited in this paper, especially the authors, Barrie G. Dale and James J. Plunkett, of the book, Quality Costing, and the author, Peter B. B. Turney, of the book, Common Cents: The ABC Performance Breakthrough – How to Succeed with Activity-based Costing, from which this paper quotes a lot of COQ and BC concept. Quality cost measurement 719 Received March 1996 Revised March 1998 International Journal of Quality Reliability Management, Vol. 5 No. 7, 1998, pp. 719-752,  © MCB University Press, 0265-671X IJQRM 15,7 720 these approaches still cannot provide appropriate methods to include overhead costs in COQ systems. Accordingly, many quality cost elements require estimates and there is a prevailing belief in COQ literature. It is a danger that managers become too concerned with accuracy in COQ determina tion – a number-crunching exercise that will consume resources disproportionately (Oakland, 1993, p. 197). In addition, most COQ measurement systems in use do not trace quality costs to their sources (O’Guin, 1991, p. 0), which hinders managers from identifying where the quality improvement opportunities lie. Nevertheless, these deficiencies could be easily overcome under activity-based costing (ABC) developed by Cooper and Kaplan of Harvard Business School (Cooper, 1988; Cooper and Kaplan, 1988). ABC uses the two-stage procedure to achieve the accurate costs of various cost objects (such as departments, products, customers, and channels), tracing resource costs (including overhead costs) to activities, and then tracing the costs of activities to cost objects. The purpose of this paper is to present a conceptual framework for measuring quality costs under ABC. First, the present approaches to measuring COQ are reviewed; second, the two-dimensional model of ABC and activitybased management (ABM) is explained; third, COQ approaches and ABC are compared and an integrated COQ-ABC framework is presented; fourth, COQ measurement, COQ reporting, and uses of COQ information under ABC are discussed; finally, a hypothetically simplified example is presented to illustrate how to measure COQ under ABC. Approaches to measuring COQ Since Juran (1951) discussed the cost of quality, many researchers have proposed various approaches to measuring COQ. Reviews of COQ literature can be found in Plunkett and Dale (1987) and Porter and Rayner (1992). In this section, we will briefly review the approaches to measuring COQ. PAF approach After Feigenbaum (1956) categorized quality costs into prevention-appraisalfailure (PAF), the PAF scheme has been almost universally accepted for quality costing. The failure costs in this scheme can be further classified into two subcategories: internal failure and external failure costs. Oakland (1993, pp. 186-9) describes these costs as follows: †¢ Prevention costs: These costs are associated with the design, implementation and maintenance of the total quality management system. Prevention costs are planned and are incurred before actual operation. †¢ Appraisal costs: These costs are associated with the supplier’s and customer’s evaluation of purchased materials, processes, intermediates, products and services to assure conformance with the specified requirements. Internal failure costs: These costs occur when the results of work fail to reach designed quality standards and are detected before transfer to customer takes place. †¢ External failure costs: These costs occur when products or services fail to reach design quality standards but are not detected until after transfer to the customer. Quality cost elements. In order to calculate total quality cost, the quality cost elements should be identified under the categories of prevention, appraisal, internal failure and external failure costs. BS 6143: Part 2 (1990) and ASQC (1974) have identified a list of quality cost elements under this categorization. These lists just act as a guideline for quality costing. Most elements in these lists are not relevant to a particular industry, while many elements identified by practitioners are peculiar to an industry, or a company (Dale and Plunkett, 1991, p. 28). Some typical COQ elements are shown in Table I. In the initial stages of the quality costing exercise, some companies put mphasis on just identifying the costs of failure and appraisal activities. The methodology usually used is for each department, using a team approach, to identify COQ elements which are appropriate to them and for which they have ownership. Several techniques, such as brainstorming, nominal group technique, Pareto analysis, cause and effect analysis, fishbone diagrams, and forcefield analysis, can be used to effectively identify COQ elements (Dale and Plunkett, 1991, p. 41; Johnson, 1995). The quality cost measurement system developed will improve with use and experience and gradually include all quality cost elements. Economics of quality-related activities. One of the goals of total quality management (TQM) is to meet the customer’s requirements with lower cost. For this goal, we have to know the interactions between quality-related activities associated with prevention, appraisal, internal failure and external failure costs. It will help in finding the best resource allocation among various quality-related activities. In the literature, there are many notional models describing the relationships between the major categories of quality costs. Generally speaking, the basic suppositions of these notional models are â€Å"that investment in prevention and appraisal activities will bring handsome rewards from reduced failure costs, and that further investment in prevention activities will show profits from reduced appraisal costs† (Plunkett and Dale, 1988). Plunkett and Dale (1988) classify these notional models into five groups, which are further aggregated into three by Burgess (1996). After a critical review, Plunkett and Dale (1988) conclude that â€Å"many of the models are inaccurate and misleading, and serious doubts are cast on the concept of an optimal quality level corresponding to a minimum point on the total quality-cost curve†. Besides, Schneiderman (1986) asserts that, in some circumstances, if enough effort is put into prevention, no defects at all would be produced, resulting in zero failure costs and no need for appraisal (also given in Porter and Rayner (1992)). Thus, in these circumstances, the only optimal point is â€Å"zero-defects†. †¢ Quality cost measurement 721 IJQRM 15,7 Categories Prevention COQ elements Quality control and process control engineering Design and develop control equipment Quality planning by others Production equipment for quality – maintenance and calibration Test and inspection equipment – maintenance and calibration Supplier quality assurance Training Administration, audit, improvement Laboratory acceptance testing Inspection and test In-process inspection (non-inspectors) Set-up for inspection and test Inspection and test materials Product quality audits Review of test and inspection data On-site performance testing Internal testing and release Evaluation of materials and spares Data processing, inspection and test reports Scrap Rework and repair Troubleshooting, defect analysis Reinspect, retest Scrap and rework: fault of supplier Modification permits and concessions Downgrading Complaints Product service: liability Products returned or recalled Returned material repair Warranty replacement Loss of customer goodwill a Loss of sales a 72 2 Appraisal Internal failure External failure Table I. Typical COQ elements Note: a Intangible external failure costs (not included in BS 6143: Part 2) Source: BS 6143: Part 2 (1990) (also given in Dale and Plunkett (1991, p. 71)) However, Burgess (1996) integrated the three types of quality-cost models, derived from reducing Plunkett and Dale’s categories (1988), into a system dynamic quality-cost model displaying dynamic behavior consistent with published empirical data. According to the simulation results, Burgess concludes that the simulation provides support for the classic view of qualitycost behavior that an optimal level of quality exists only in certain timeconstrained situations. If the time horizon is infinite, or above a particular cutoff value, then spending on prevention can always be justified, i. e. the modern view prevails. Drawbacks of the PAF approach. Although the PAF model is universally accepted for quality costing, there are a number of criticisms of it (Oakland, 1993, pp. 200-1; Porter and Rayner, 1992), described as follows: †¢ It is difficult to decide which activities stand for prevention of quality failures since almost everything a well-managed company does has something to do with preventing quality problems. †¢ There are a range of prevention activities in any company which are integral to ensuring quality but may never be included in the report of quality costs. †¢ Practical experience indicates that firms which have achieved notable reductions in quality costs do not always seem to have greatly increased their expenditure on prevention. Original PAF model does not include intangible quality costs such as â€Å"loss of customer goodwill† and â€Å"loss of sales†. †¢ It is sometimes difficult to uniquely classify costs (e. g. design reviews) into prevention, appraisal, internal failure, or external failure costs. †¢ The PAF model focuses attention on cost reduction and ignores the positive contribution to price and sales volume by improved quality. †¢ As mentioned above, the classic view of an optimal quality level is not in accordance with the continuous quality improvement philosophy of TQM. †¢ The key focus of TQM is on process improvement, while the PAF categorization scheme does not consider process costs. Therefore, the PAF model is of limited use in a TQM program. Alternatives to the PAF approach. The alternatives to the PAF categorization scheme are divisions of quality costs into conformance and nonconformance, tangible and intangible, controllable and uncontrollable, discretionary and consequential costs, and so on. Crosby (1984, p. 86) divides quality costs into two categories: (1) the price of conformance (POC), including the explicitly quality-related costs incurred in making certain that things are done right the first time; and (2) the price of nonconformance (PNOC), including all the costs incurred because quality is not right the first time. Crosby’s POC includes prevention and inspection costs and his PNOC includes internal and external failure costs (Shank and Govindarajan, 1994, p. 6). In Xerox, quality costs are classified into three categories: (1) the cost of conformance (prevention and appraisal); (2) the cost of nonconformance (failure to meet customer requirements before and after delivery); and (3) the cost of lost opportunities (Carr, 1992). Quality cost measurement 723 IJQRM 15,7 724 The first two categories are analogous to Crosby’s POC and PNOC respectively. Xerox measures lost opportunities as the profit impact of lost revenues. It occurs when a customer chooses a competitive product over a Xerox product, when a customer cancels an order because of inadequate service, or when a customer buys Xerox equipment that is inadequate or unnecessary and switches to another brand. Juran claims that both prevention and appraisal costs are inevitable and are not worth including in quality costs (Juran et al. , 1975). Juran advocates a categorization of quality costs including: †¢ †¢ †¢ tangible factory costs, which are measurable costs such as scrap, rework, and additional inspection; tangible sales costs, which are measurable costs such as handling customer complaints and warranty costs; intangible costs, which can only be estimated, such as loss of customer goodwill, delays caused by stoppages and rework, and loss of morale among staff (also given in Porter and Rayner (1992)). Juran’s categorization scheme focusses on the costs of product failures and emphasizes the importance of intangible quality cost elements, which in the long term are of greater importance than cost reduction. Another alternative, proposed by Dale and Plunkett, is to consider the activities relating to supplier, company (in-house) and customer under the PAF categorization. This approach has the merit of new categories which closely relate to the business activities while retaining the advantages of th e PAF categorization (Dale and Plunkett, 1991, pp. 26-7). Process cost approach It seems that the identification of quality cost elements in the PAF approach is somewhat arbitrary. It may focus on some quality-related activities which account for the significant part of total quality cost, not on all the interrelated activities in a process. Under the philosophy of process improvement in TQM, analysts should place emphasis on the cost of each process rather than an arbitrarily defined cost of quality (Goulden and Rawlins, 1995). In view of this, the process cost approach, described in the revised BS 6143: Part 1 (1992), is proposed. It recognizes the importance of process cost measurement and ownership. The process cost is the total of the cost of conformance (COC) and the cost of nonconformance (CONC) for a particular process. The COC is the actual process cost of providing products or services to the required standards, first time and every time, by a given specified process. The CONC is the failure cost associated with a process not being operated to the required standard (Porter and Rayner, 1992). According to this definition, we know that the content of this categorization (COC and CONC) is different from that of Crosby’s (POC and PONC) and Xerox’s (COC and CONC) mentioned previously. The process cost model can be developed for any process within an organization. It will identify all the activities and parameters within the process to be monitored by flowcharting the process. Then, the flowcharted activities are allocated as COC or CONC, and the cost of quality at each stage (i. e. COC + CONC) are calculated or estimated. Finally, key areas for process improvement are identified and improved by investing in prevention activities and process redesign to reduce the CONC and the excessive COC respectively (Oakland, 1993, pp. 201-7; Porter and Rayner, 1992). The British Standards Institution has included this methodology in the revised BS 6143: Part 1 (1992). Dale and Plunkett (1991, p. 43) state that this will help to extend the concept of quality costing to all functions of an nterprise and to non-manufacturing organizations, and that it also gets people to consider in more detail the processes being carried out within the organization. A process modelling method, IDEF (the computer-aided manufacturing integrated program definition methodology) (Ross, 1977), can be used to construct the process cost models for the processes within an organization (Marsh, 1989). This method utilizes activity boxes with inputs, outputs, controls and mechanisms to depict the activities of a process. However, the IDEF method is developed for use by experts for system modeling. It seems to be too complex if departmental manager and staff were to be responsible for identifying the elements of process costs. Thus, Crossfield and Dale (1990) develop a more simple method called quality management activity planning (Q-MAP) for the mapping of quality assurance procedures, information, flows and qualityrelated responsibilities. In addition, Goulden and Rawlins (1995) propose a hybrid model to overcome the limitations of the IDEF method for process quality costing. It constructs integrated or functional flowcharts to represent the processes by using information from a three-level hierarchical model (function-department-activity), where the lowest level is an activity defined as a task with a single output. This will reduce the level of complexity of the IDEF type models. Other COQ approaches There are some approaches to measuring COQ in addition to the PAF approach and the process cost approach. For example, Son and Hsu (1991) proposed a quantitative approach to measuring quality costs, which considers both manufacturing processes and statistical quality control. Statistical terms of quality are translated to dollar terms in this approach. However, the quality cost model presented in their paper is restricted to a simplified manufacturing system which consists of only a machining area (with in-process sampling inspection) and a final inspection area (with 100 percent final inspection). Besides, Chen and Tang (1992) present a pictorial approach to measuring COQ, which is patterned after that used in a computer-based information system design. The COQ variables considered in this approach include direct COQ variables (PAF costs and quality-related equipment costs) and indirect Quality cost measurement 725 IJQRM 15,7 726 COQ variables (customer-incurred costs, customer-dissatisfaction costs and loss of reputation). It includes two major steps: (1) specifying the COQ variables as well as the significant relationships among the variables, and mapping the variables and relationships into an â€Å"influence diagram† showing the structure of a COQ system; and (2) converting the structure into a well-defined â€Å"entity-relationship diagram† showing the input-output functions and their associated properties. The influence diagram used in the pictorial approach can provide an easy-tounderstand COQ system for quality management practitioners, and the entityrelationship diagram can provide an effective framework for maintaining and modifying the COQ system. Quality cost collection Fundamentally, the PAF approach, the process cost approach and even Chen and Tang’s pictorial approach need first to identify the quality cost elements. For the PAF approach, COQ elements are identified under the cost categories of the selected categorization scheme. Most of COQ elements relate to qualityrelated activities. For the process cost approach, the cost elements of COC and CONC for a process are derived from the flowcharted activities of the process. Most cost elements of COC do not relate to quality-related activities of traditional COQ view. After identifying the quality cost elements, we should quantify the elements and then put costs (dollar values) on the elements which have been identified (Dale and Plunkett, 1991, pp. 40-1). In COQ literature, many authors pay attention to why COQ information is important and what should be included in a COQ system, and seldom discuss how to measure and collect quality costs. However, Dale and Plunkett give lots of guidance on quality cost collection, including objectives and scope, approaches, sources of data, ease of collection, level of detail, accuracy of data, and people involved (Dale and Plunkett, 1991, Ch. 3, pp. 6-51). Besides, Thorne (1990) recommends some relatively uncomplicated methods for calculating COQ, i. e. collecting quality costs by account, by defect type, by whole person, by labor hours, and by personal log (also given in Johnson (1995)). Dale and Plunkett state that â€Å"the collection and synthesis of quality costs is very much a matter of searching and shifting through data which have been gathered for other purposes† (Dale and Plunkett, 1991, p. 38). Some of quality costs are readily available from a cost accounting system (e. g. scrap and rework costs); some can be derived from the data of activity reports (e. g. repair and inspection costs). Nevertheless, a large portion of quality costs should be estimated by some ways. For example, the opportunity costs of lost customer goodwill and lost sales, which are intangible external failure costs (similar to the third category of Xerox’s COQ system), can be estimated by Taguchi’s quality loss function (Albright and Roth, 1994). Other examples are the costs of producing excess inventories and material handling due to suboptimal plant layouts, which are indirect failure costs and can be estimated by expertise. In addition, calculating prevention costs needs the estimates of apportionment of time by indirect workers and staff who do not usually record how they spend their time in various activities. Deficiencies of most COQ systems Generally speaking, there are the following deficiencies in measuring COQ among most COQ systems: †¢ The aspect of overhead allocation in calculating COQ is seldom discussed in the literature. In practice, some companies add overheads to the direct cost of labor and material on rework and scrap, while other companies do not. If they do, â€Å"rework and scrap costs become grossly inflated compared with prevention and appraisal costs which are incurred via salaried and indirect workers† (Dale and Plunkett, 1991, p. 45). †¢ Most of COQ measurement systems in use are not (there are some exceptions) intended to trace quality costs to their sources (O’Guin, 1991, p. 70) such as parts, products, designs, processes, departments, vendors, distribution channels, territories, and so on. Accordingly, the COQ information derived from these systems cannot be used to identify where the quality improvement opportunities exist. †¢ â€Å"It is the general lack of information about how people, other than direct workers, spend their time which presents a considerable obstacle to the collections of quality costs† (Dale and Plunkett, 1991, p. 112). The deficiencies mentioned above will decrease the accuracy of quality costs and limit the usefulness of a COQ system. However, these deficiencies can be easily solved under ABC (Cooper, 1988; Cooper and Kaplan, 1988), developed by Cooper and Kaplan of Harvard Business School, together with other techniques. Two-dimensional model of ABC Evolution of ABC The main shortcoming of traditional cost accounting is to distribute overhead costs over products by using volume-related allocation bases such as direct labor hours, direct labor costs, direct material costs, machine hours, etc. It will not seriously distort the product cost in the conventional manufacturing environment where overheads are just a small portion of product cost. In the modern manufacturing environment, however, the overheads will grow rapidly as manufacturers increasingly promote the level of automation and computerization, and the cost distortion of traditional cost accounting will be significant (Brimson, 1991, p. 179). The main reason is that many overhead costs vary with volume diversity, product diversity, and volume-unrelated activities (e. g. set-up and scheduling activities), not with the volume-related measures. For example, highvolume products consume more direct labor hours than low-volume products, but Quality cost measurement 727 IJQRM 15,7 728 high-volume products do not necessarily consume more scheduling cost than lowvolume products. Therefore, traditional cost accounting will overcost highvolume products and undercost low-volume products. In view of this, Cooper and Kaplan suggested using ABC to improve the accuracy of product costs. In early ABC systems (Turney, 1991, pp. 7-80), overhead cost is divided into various cost pools, where each cost pool contains the cost of a group of related activities consumed by products in approximately the same way. Each cost pool is distributed to products by using a unique factor that approximates the consumption of cost. This unique factor, called an allocation basis in traditional cost accounting, could be volume-related (e. g. direct labor hours and machine hours) or volume-unrelated (e. g. number of orders, set-up hours, and number of parts). Early ABC systems focus on the accurate assignment of overhead costs to products. They do not provide direct information about activities and do not consider the costs outside the plant. Thus, a two-dimensional model of ABC is proposed as shown in Figure 1. This ABC model is composed of two dimensions: cost assignment view and process view described in the following two subsections. The cost assignment view of ABC The detailed cost assignment view of ABC is shown in Figure 2. ABC assumes that cost objects (e. g. products, product lines, processes, customers, channels, Cost Assignment View Resources Resource Drivers Process View Cost Drivers Activities Performance Measures Activity Drivers Cost Objects Figure 1. Two-dimensional model of ABC Source: Adapted from Turney, (1991, p. 81) Resources Resource Drivers First Stage Quality cost measurement Activity Center Activity Activity Cost Pool 729 Cost Element Second Stage Activity Drivers Cost Objects Figure 2. Detailed cost assignment view of ABC Source: Adapted from Turney, (1991, p. 97) markets, etc. ) create the need for activities, and activities create the need for resources. Accordingly, ABC uses two-stage procedure to assign resource costs to cost objects. In the first stage, resource costs are assigned to various activities by using resource drivers. Resource drivers are the factors chosen to approximate the consumption of resources by the activities. Each type of resource traced to an activity becomes a cost element of an activity cost pool. Thus, an activity cost pool is the total cost associated with an activity. An activity center is composed of related activities, usually clustered by function or process. We can create activity centers by various ways according to different information needs. In the second stage, each activity cost pool is distributed to cost objects by using an adequate activity driver which is used to measure the consumption of activities by cost objects (Turney, 1992). If the cost objects are products, then total cost of a specific product can be calculated by adding the costs of various activities assigned to that product. The unit cost of the product is achieved by dividing the total cost by the quantity of the product. The resources used in manufacturing companies may include people, machines, facilities, and utilities, and the corresponding resource costs could be assigned to activities in the first stage of cost assignment by using the resource drivers time, machine hours, square footage, and kilowatt hours respectively (Brimson, 1991, p. 135). For the manufacturing activities, there are the following categories of activities (Cooper, 1990): †¢ unit-level activities (performed one time for one unit of product, e. g. 100 percent inspection, machining, finishing); IJQRM 15,7 730 batch-level activities (performed one time for a batch of products, e. g. sampling inspection, set-up, scheduling); †¢ product-level activities (performed to benefit all units of a particular product, e. g. roduct design, design verification and review); †¢ facility-level activities (performed to sustain the manufacturing facility, e. g. plant guard and management, zero defect program). The costs of different levels of activities will be traced to products by using the different kinds of activity drivers in the second stage of ABC cost assignment view. For example, machine hours is used as the activity driver for the activity machining; set-up hours or the number of set-up for machine set-up; and the number of drawings for product design (Tsai, 1996b). Usually, the costs of facility-level activities cannot be traced to products with the definite causeeffect relationships and should be allocated to products with appropriate allocation bases (Cooper, 1990). The information achieved from ABC cost assignment view is usually used for the decisions of pricing, quoting, product mix (Tsai, 1994), make versus buy, sourcing, product design, profitability analysis, and so on (Turney, 1992). The process view of ABC The process view of ABC is composed of three building blocks: cost drivers, activities and performance measures. It provides information on why the activities are performed via cost drivers and on how well the activities are performed via performance measures. Cost drivers are factors that determine the workload and effort required to perform an activity (Turney, 1991, p. 87), i. e. factors that cause a change in the cost of an activity (Raffish and Turney, 1991). For example, the quality of parts received by an activity (e. . the percent that are defective) is a determining factor in the work required by that activity, because the quality of parts received affects the resources required to perform the activity. Cost drivers identify t he cause of activity cost and are useful because they point people to take action at the root cause level, i. e. they reveal opportunities for improvement. An activity may have multiple cost drivers associated with it. Performance measures are used to indicate the work performed and the results achieved in an activity (Raffish and Turney, 1991). They tell us how the activity is meeting the needs of its internal or external customers. There are five fundamental elements of activity performance: (1) the quality of the work done; (2) the productivity for the activity; (3) the cycle time required to complete the activity; (4) the cost traced or allocated to the activity; and (5) customer satisfaction (Miller, 1996, pp. 94-5; Turney, 1991, pp. 88-9). †¢ Performance measures differ from one activity to another and from one company to another. Performance measures may be financial or nonfinancial. The process view of ABC places emphasis on processes. A process is a series of activities that are linked to perform a specific objective. A business process often runs across artificial organizational boundaries, departments or functions. Because of the interdependency of activities in a process, the work of each activity affects the performance of the next activity in the process. Accordingly, performance measures for one activity may become cost drivers for the next activity (Turney, 1991, p. 190). For example, performance measures for designing new tools may include the number of change in specifications and the number of new drawings, and these performance measures are just the cost drivers for the succeeding activity, manufacturing new tools. This tells us that merely identifying activities without consideration of their relationship to other activities in the process will result in overlooking many improvement opportunities (Lawson, 1994, p. 35). The information achieved from the process view of ABC can be used to aid in process/activity improvement. The potential improve