A controversy in propaganda Essay Example | Topics and Well Written Essays - 1000 words

A controversy in propaganda - Essay Example This is in addition to distributing such information to concerned citizens via their right to receive such ‘accurate’ news. Indeed as one of America’s founding fathers would portend – an informed society is essential for democracy to thrive (ODonnell and Garth 57). In order for information to have both value and meaning, it ought to be not only objective, but also reasonably complete and accurate. Hence, the ideal that both the objectivity and freedom of the press are a cornerstone of democracy. To be noted is that with freedom, as enshrined in democracies, comes both challenges and responsibilities (Chomsky and Edward 41). This necessitates correspondence that is both objective and balanced, despite prevailing personal perspectives; often in the most horrible of human conditions. In addition, when faced with the various tragedies of human misunderstandings and conflicts, it is difficult for one to remain as a detached observer. The media industry, under continuous pressure to deliver captivating and compelling news, often finds it difficult to successfully resist various temptations to sensationalize information presented (Chomsky and Edward 44). Historically, a majority of attempts made in measuring the effects of propaganda involved highly artificial techniques. However, these have not really captured the effects of propaganda because of the sleeper effect; that is, delayed reactions until the propaganda has penetrated resistance from the intended audience. Historically, the media has been on the forefront in propagating propaganda through conveyance of messages, ideals and perspectives. This has been the case from the early times newspapers, leaflets and catalogues, to the present-day society, where social media amongst other forms of electronic media, have and continue influencing society. This has been through different avenues of ‘loading’ information output in such manner, as to serve as an avenue

What are the historical causes of racial inequality in the United Essay

What are the historical causes of racial inequality in the United States - Essay Example that the white race was superior of the black, which grew at the end of the 1800s, played a big role in validating suppression and the demolishing of the traditional cultures, societies and civilizations of the native peoples of different races and ethnic groups particularly the African slaves who were sold by the Europeans to the Americans during the 19th century and who later became African-Americans. In addition, this set of beliefs and ideas also became a catalyst for regarding or considering enslavement and submission as a humanitarian responsibility or duty. â€Å"In its modern form, racism evolved in tandem with European exploration and conquest of much of the rest of the world, and especially after Christopher Columbus reached the Americas. As new peoples were encountered, fought, and ultimately subdued, theories about â€Å"race† began to develop, and these helped many to justify the differences in position and treatment of people whom they categorized as belonging to different races.† (Wolf 97) Enslavement was the chief cause of the ever-increasing political conflict and opposition around the 1850s in the United States as people started to oppose and contravene racism. This open opposition and the American democracy that made speech and opinion more open was the stepping-stone for the road from slavery to the civil rights movement and later on, towards the ethnic and racial equality around the nation. In retort to an anti-slavery Republican as the winner of the Presidential election, nearly a dozen Southern slave states in America affirmed their separation and breakaway from the United States. Together, they formed the Confederate States of America, also known as the Confederacy. The remaining twenty-five states supported the federal administration called the Union. Began in 1861, the Civil War lasted a total of four years. The reasons and grounds were complicated, and ever since this battle began, its causes have been heated with a lot of controversial

Hospitality Industry Questions and Answers

Hospitality Industry Questions and Answers Introduction What is Hospitality? People serving you popcorn when you entered a cinema, concierge in a five star hotel and the museum tour guide have the common? They are all work in servicing which is under the house of hospitality industry. Do you know that hospitality industry is the largest industry throughout the world? It is the main source of income for majority countries. Hospitality is not just about a simple servicing, but it involves in showing respect for ones guests, provide for their needs and wants, and treating each other as equals. Hospitality industry involved hotels, casinos, and resorts which provide comfort and a sort of guidance to guests. The term hospital, hospice and hostel are deriving from hospitality and these establishments protect more of the connotation of personal care. It refers to a types of establishment where provide shelter and foods for people which is in needed or away from their home. Hospitality was founded by Bob Luitweiler in year 1949 and this establis hment are responsible in setting up a building, provide secure, pleasant place for a temporary stay, cleaning and maintaining premises. Now days, customers expectation is high. Quality is perhaps the most variable feature in hospitality industry. Answer for Question 1 Hospitality, a contemporaneous human exchange, which is voluntary entered into, and designed to intensify the mutual well being of the parties concerned through the provision of accommodation, and / or food, and / or drink. Hospitality industry had a wide scope. According to the historians, the development of hospitality industry had been traced in a thousand of years and many cultures. A professional hospitality industry must always keep updating according to the needs and wants of the societies. Success in the hotel industry are always relies on catering to the needs of the targeted clientele. Besides, providing a wide variety of services and pleasantness desirable atmosphere will always drive the hospitality industry into a large, multi faceted and diverse industry. The main component in hospitality industry is all about dealing with customers and lead to the satisfaction of the customers in every service provided since the yore days. Hospitality industry has begun since 3000 B.C ago. The field of hospitality encompassing travel, tourism, restaurants, and recreation. There are some advantages and disadvantages for every business and staff. This happen same to hospitality industry. For your knowledge, hospitality industry is a very wide scope; it mainly concentrated in two largest establishments throughout the world. Example for these two establishments is stated in the figure belowà ¢Ã¢â€š ¬Ã‚ ¦ Lodging What is lodging? It means the lodging segment of the hospitality industry example like hotels, inns, motels, resorts, chalet, and others more. In summary, lodging means any establishment which provides a bed for a fee or embrace of rent and a reasonable allowance for utilities and use appliances and furniture. Basically a lodging establishment always included elements of entertainment, personal services, recreation and food service for wayfarer. Majority of lodging facilities in the world extend from tiny bed and breakfasts meal to the latest development, megaresorts. Niches between these ultimate include commercial hotels, city center hotels, resort hotels, suburban hotels, highways hotels/motels, airport hotels, economy properties, conference centers, all suite hotels, and casino hotels. Essence of a successful set of business operations means the successful in exchange products or services for value. In a set of business, its a chain of supply with demand. Luxury hotels are selling their suite and other kind of facilities in the hotel to the guests which provide their demand. Supply and demand is the point where profits earn in a business. Product and services in a service industry like lodging, is a holistic concept. It consist of tangibles like hotel type and physical amenities and intangibilities like services provided by the lodging staff. Customer wants and needs are always changing and varied. As customer are becoming increasingly demanding, hotels must be designed and created to be more responsive and effective in order to achieve different travelers needs and wants. Advantages In 21st century, people have a necessity in staying at some city or town for an extended period of time. When a people are away from home, lodging is the only accommodation for them to have a stay. Many people are worried about how much they are going to spend for the accommodation. As a matter of fact, staying in a hotel got a couple of benefits. Privilege of day services such like room cleaning and laundry really put away the stress of the guests in doing the laundry them self after a tiring working day. Leisure places like gymnastic room or swimming pool are other attractions for customer to choosing in staying in a hotel. Since price is the first priority to the customer, hotel must be always updated to the latest promotions and events from the competitors. Furthermore, localization played an important role in advantages in lodging. There are two types of location of a hotel which is more preferred by peoples. First of all is conference hotel which is located in a city or a conference area of a country. These hotels normally targeted more on businessman. The location of the hotel enables them to travel to the work place or meeting center easily. Secondly are vocational locations. Hotels which is located near a beautiful view example like beach resort or a hotel located in a tourism area are mostly targeted on family. These hotels are free from the peak working hour in a busy city, free from noise and air pollution is always the selection of a family vacation. Environment is another factor of advantages in lodging. Example like a hotel located on a beautiful waterfront enable the guest to enjoy the mesmerizing views from their room. It is an indeed to stay at one of these hotels for stressful or a busy businessman. Do you know that other than the view of a lodging, customers demand for quality entertainment too? Good entertainment example like a luxury pub, sea diving or even a luxury swimming pool will attracts more guests with stress release and entertainment seeker demand. Disadvantages Large hotels with thousands of rooms, modern leisure facilities and wide choice of dining options are always the advantages in lodging. But, this also causes disadvantages to the lodging. A waiting line in reception area always can be seen in large lodging. A large hotel requires good management. A failure management will just slow down the running process in a hotel daily. We cant predict whether the guest will have a late check out and this causes the incoming guest to have a wait before they can check into their room. Secondly, a large hotel sometimes will face the problem of insufficient staffs. In a luxury dining, due to the staff are insufficient, they are always run off their feet by the number of guests. Unfortunately, guests will be kept waiting when they need something while the staffs are busying in handling another guest. Example like you ask for a menu, you might be able to be waiting for the menus to be brought to you until your stomach start rumbling. Food service Food service is a large industry which deals with all the preparations of food outside the home. Example like establishing a restaurant, catering a wedding party, and running a cafeteria are all forms of food service. Normally these restaurants lay institutional food service in business, colleges, hospitals and remedial faculties. A bunches amount of goods and services fall under the coverage of food service, example like establishment which transport food and equipment related to kitchen, silverware and so forth. Job opportunities had been wider up due to human energy is needed in this set of industry. Restaurateurs, waiters, dietitians and chefs are some example of worker needed in food service industry. Some people in this industry are sent for training so that they are qualified to work in this industry. High class luxury dining needs talent and qualified people to work in it. Colleges now days are offering hospitality courses. In year 2008, there were 546,300 privately owned food service and drinking places around the United Sates. 47 percent of these establishment primarily serve patrons who order and pay before eating while 39 percent of establishment offer full service restaurant; being served well and after consume their delicious cuisine only make a payment. Another 9 percent had been comprised by drinking places and special food service like caterers had comprised about 5 percent of all establishments in this industry. Food service can be defined as worlds most widespread and familiar industry. Advantages In food service industry, human energy is needed in a big amount. From the chef, assistant chef until waiter got quite a many positions. Here is where the job opportunities once again wider up. The requirements for these positions example like a cleaner in a dining or waiters do not need high education levels. People with a diploma or degree on hand can hold the position of a manager in a department. As there is getting more and more lodging and dining is developing, it is quite an opportunities for youngers out there to get a bright future for themselves through hardworking. Besides, food industry targeted people which are looking for foods when they are starving. This is why choosing a correct location will be the final judges on how well the set of business will go. A restaurant which located in a down town of course will grab some customers from the busy working life in the city. First its easy to find, save up the customer time, and even some time rusher people can just have a take away meal near a restaurant near his / her company. In this highly competitive hospitality industry, a well and professional trained staff is essential to the key of success of any food service establishment. Besides, technology influences the food services industry in many ways by enhancing efficiency and productivity. Order are being taken down by electronic devices, patron seating are all contributing in an efficient fast serving Disadvantages Yes it is an advantage when the job opportunities are getting wider and a student which is just graduated will be easier to get a job in hospitality industry. But, a new staff with just a piece of diploma or degree and without any working experience will eventually affect the efficiency of service in any establishment. Some time in on the job training will be needed again before these new employees are able to handle the tasks and responsibilities in a restaurant. Besides, location of a restaurant in down town is a good starting point in successful service industry. But, do you know it is very expensive for the rental for the shop which is located in down town? Shop lots in down town got limited quantities too, and competitors are many out there. Another factor which leads to disadvantages in food service industry is about the working hour. Works in the food industry are always grueling and demanding. Working hours are often long and irregular and dealing with varied and complex situation. Besides, people also must highly attune to the need of customer satisfaction. However, wages are heavily based on the tips from customers, and employees may have a limited access to the benefits and protections from the government such as minimum wage laws. Conclusion In hospitality industry, good service is the top priority and is the primary focus in order to achieve customer satisfaction. Working in hospitality industry must always keep this in mind, Customers do not buy service delivery but they buy experiences; they do not buy service quality but they buy memories; they do not buy foods and drinks but the buy meal experiences; they do not buy event or functions but they buy occasions. In hospitality industry, we are the dreamers of dreams. We are required to make the guest to feel that the host being hospitable through feelings of generosity which is a desire to please and a genuine regard for the guest as an individual. Remember, hospitality industries are always an honorable profession and we are the industry which mostly deals with customers needs and wants. Question 2 Find out the factors that affecting travel and tourism. Explain in detail Introduction Travel and tourism is mainly for recreation, leisure or business purposes. Tourism is very important to the hospitality industry as it is the main support of the revenue in lodging. Tourism refers to the activities of persons travelling to and staying in a place outside for not more than one consecutive year for leisure, business and other purpose. Therefore, these people are considered to be tourists; on a visit that is temporary and short term. These organizations include restaurants, hotels, motels and resorts. There are two types of tourism which is domestic tourism and outbound tourism. Domestic tourism refers to people which take holidays or a few days trip in their own country. Example like a family is visit to another part of the country. Outbound tourism refers to people which travel away from home and visit to another country for leisure or business purpose. However, no matter what type of travel it is, these people will always ended up in staying in lodging. This is where the revenue of the hospitality industry started. Answer for Question 2 Travel and tourism has become a popular global leisure activity. Tourists are generally classified in statistics according to the duration and purpose of their journey. Day trippers refers to tourists which is away from home just for a day and dont need any accommodation. Visitors which need an accommodation can be classified by their length of stay, such as one night or more. These visitors may be classified as to whether they are touring for business or leisure purposes. People travel for leisure is because they are living in a hectic life style, they are seeking for a relaxation which is away from a busying life, and they need a rest and prestige. There are a few factors which affecting travel and tourism. Growing Leisure Leisure can be defined as the opposite meaning of idleness. People now days are busying in working, keeping themselves in a busy and hectic life style. But, as the world is neither changing, nor the policies in any organization is changing too. Most of the companies out there had been generous in providing their employees paid holidays and even some large organization are providing a three day weekends. A more flexible arrangements has been added into peoples leisure time, and eventually, these liberal company policies had enable the employees to go for a vacation or travel to give themselves a break. Income In the 21st century, most of the women are working in order to maintain their family income. What does it mean by maintain the family income? It is more on referring if one spouse loses a job, that wont causes elimination of all the family income. Besides, due to the education which is though is school or college, women had more motives in working outside. They seek for challenges, they seek for work which is professional and excitement and another reason why women choose to work after marriage is they want to give a more comfortable and satisfying life to her family. Everyone works in maintaining a comfortable life style. Of course, when you are busy in working, especially for a marriage person, after a tiring working day, they might still need to take care of their children at home in the night and some house works still need to be done. Eventually, leisure time for our own will be immolated. So, if there is a time for them to get away from this hectic life style, it is not surpris ing when they spend their money on the goods and services they demanded. Time will be a bounty for them. They wont bother about the price for their travel, because it is not easy for them to get a rest in such pressure and hectic life style, good and quality travelling will always be their wise choice. Push and Pull Factors The travelling motives for people tend to categorize as escaping from and / or escaping to a particular destination. Push factor brings up the meaning of a person who travel to a place due to his / her response in what is missing. Pull factors brings up the meaning of attractiveness of a places and attract the people to visit to it. Push and pull factor can be classifies into nine motives to travel which seven of those are socio psychological or known as push motives; the other two are defined as cultural or pull motives. Push motives are escapism, relaxation, retrogression, social inter action, self exploration and prestige while pull motives are innovation and education. There is also two main type of push and pull factors which is personal and interpersonal. Interpersonal is a result of social interaction. Personal rewards are self determination, sense of competence or challenge. Technology change Technological changes within tourism included several different factors from medical advances to the innovative tourism. Better communication, transport like cruise ships and safety have emboldened new customers which demand easier, quicker and cheaper service, this demand can only be fulfill by the help of technology. Besides, new transportation also got an advance in time management. Shorter and efficient time period is just needed for a person to travel from a country to another side of the planet. Furthermore, through technological advances, online booking has been one of the biggest factors in affecting travel and tourism. Users are enabling to check for travelling packages from tour agencies websites and direct purchase it by just a few clicks at home without need to go to the agencies. With the association and sponsored from different tour agencies and organizations, MATTA FAIR had been organized. MATTA FAIR is an open public fair which offer supreme packages which can be affo rd by economical income family. Development in technology had leads more and more people are getting to travelling around the world rather than remain at their own country and stick in the hectic daily schedule. Demographic The topic middle aging of America which is a significant demographic change had proved that middle age generally indicated to higher income and a greater propensity to travel. The group of people with age around 35 to 44 is most likely to stay in accommodations or a longer outstation trip, whether is for leisure or business purpose. Another significant demographic development for tourism is about the growing of the mature market which mean group of people with age over 55. This group of people got their mortgages paid and a large proportion of them have a nest egg of savings and retirement benefits to withdrawn. This had enabled these groups of people to travel around the world and enjoy for the rest for their life. This people with age 55 65 years old as the first baby boomers which move into their mature years will be very excited and active in seeking a whole new experience which is deal with the travel and leisure moment in their life after being retired. And this is the reason they are able to have a long period vacation. Another group of aging people which is over the age of 85 normally suggest an expansion in assisted living facilities. Safety Security Safety and security have been identified as one of the global forces that would drive the tourism industry in a new millennium. Things that tourisms worried when they are staying in a hotel at any destination are all about the same which is: Assault Raping Larceny Robbery Fire within premises Protecting the lives of guests and workers, property and assets of the business from criminal actions includes security checks on existing design and technology. Lighting of the public and external areas, building access, key control, security of guestroom doors, and guarding of the property must be always keep updated and check by the maintenance department. All the employees should be trained to know about all the appropriate security procedures when there is an emergency happened example like a fire situation. If the safety and security in a lodging establishment is good and well management, eventually guests which stay at the first time will get good impression from it and eventually will recognize it to their friends when they back to their country. Conclusion Travel and tourism is important to the hospitality industry. The most common reason why people go for travel is leisure, and sometimes followed by business. An attractive environment appeals to tourists, whether is natural or built, and the development of the industry in a locality will relate to the surrounding area. People are travelling by car more than any other means. Travel by air had been increase over the last 10 years. But, the fares begin to rise and this causes people taught that travelling is expensive. This is why some people just ignore travelling and keep themselves in busy working. Communications between air lines and tourism industry should make an agreement in order to bring up the tourism industry. Rising of fares will never give any help in bringing the tourism industry to a new millennium.

Immigration Reform Essay -- Economics Welfare Immigration Essays

Immigration Reform At this time, the United States has allowed more immigrants to enter the country than at any time in its history. Over a million legal and illegal immigrants take up residence in the United States each year. Immigration at its current magnitude is not fulfilling the interests or demands of this country. With the country struggling to support the huge intake of new comers, life in America has been suffering tremendously. The excessive stress put upon the welfare system, overuse of the family reunification laws, and the exploitation of employment based immigration in the computer industry are reasons for immigration reform. The United States welfare system has difficulties supporting the huge numbers of immigrants coming into the country each year. A majority of the immigrants are from poor countries and come to the U.S. looking for work. A research organization called Urban Institute revealed that immigrants use more welfare and earn lower incomes than natives, which results in immigrants paying less taxes. The Urban Institute is a non-profit organization that investigates the social and economic problems of this country. Statistics from a Federation for American Immigration Reform (FAIR) newsletter shows, ?. . . the share of immigrant households below the poverty line (29 percent) is much higher than the share of native households that are poor (14 percent)--more than twice as high.? Due to the large numbers of poverty st...

Management Accounting Essay

Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountant’s have a CVP model that is appropriate for assisting management with decision making Ryan Bebbington Word Count 1796 Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountant’s have a CVP model that is appropriate for assisting management with decision making Cost volume profit analysis looks into the relationship between a firms fixed and variable costs and total revenues across a varying level of production. The model will give a predicted level of profit at a given level of production. There are many ways that CVP analysis can be useful for decision making, it is important to distinguish between the different applications of the Economists and Accountants interpretations, as well as other factors involved in decision making. CVP analysis is used in management decisions when forecasting production levels. To use this model effectively, Management will look at different scenarios of output, prices and costs, and see where the model predicts the firm’s revenues will cover its total costs. This point is known as the breakeven point. Management can investigate the effects of price increases, changing costs from fixed to variable such as salaries to commission based pay. Managers can also investigate the outcomes from decisions such as making components in house or buying in, retaining or replacing equipment and marketing decisions. They can also investigate the sales mix. By having a prediction of the effects of these variables, managers will be able to make better decisions, as they have more information. CVP is a simplified model and thus has limitations to its analysis and predictions. When managers are aware of the limitations and how to correctly use CVP analysis it can be a powerful tool. Managers must be aware that there are assumptions that are made to simplify the CVP tool, as it cannot truly model the real business, as it would be far too complicated. The economist’s interpretation of the CVP graph, Figure 1, is based on two main assumptions, which explain the shape of the cost and revenue curves. The first assumption, which affects the revenue curve is that the firm is competing on price competition, this means that in order to increase sales, the firm must reduce the marginal selling price of the product. This causes the firm’s revenue curve to level off, as the marginal revenue falls to à ¯Ã‚ ¿Ã‚ ½0, as in figure 1b. After this point the firm is selling at a negative price, causing the firm’s total revenue to fall. The second assumption is based on the firms cost curve, is based on economies and diseconomies of scale. The firm’s economies of scale cause the variable cost per unit to decrease as production increases, as in figure 1b. This can be due to any of the economies of scale, such as purchasing, where a discount for bulk buying is received, managerial, where managers can become more specialised, financial where the firm is offered lower interest rates as there is a lower risk of lending. The Total cost curve will level off as these increasing returns to scale cause the production to reach a level of most efficient output. After this the firm will experience decreasing returns to scale, as the plant is operating at a higher production level than it was designed for, causing problems in production, such as bottlenecks in the production line. This causes the average unit cost to increase again, giving the curve its shape. It is important to understand that Economists are trying to most accurately model real world situations, rather than create a tool for management decisions. The accountants CVP model, figure 2, is based on a simpler interpretation of the cost and revenue functions, this is because Accountants are not concerned with provided an accurate representation of the cost and revenue functions, instead they wish to display the relevant ranges, figure 3, of production for the firm. As this is the information that is used for short-run decision making, as this is the time frame where the information is most useful for management decision making, information for longer term decision making is required for board level decisions, to do with the long term objectives of the company. The information that the firm uses to produce its cost and revenue curves is extracted from previous operating costs and revenues, this ensures that the information is reliable. The Accountants cost function, is a straight line, which assumes that for each additional unit produced, a standard variable cost is incurred, the assumption that production will only be occurring in a relevant range means that the firm’s production will not alter enough to cause increasing or decreasing returns to scale. The Accountant’s interpretation of the fixed cost curve is different to the Economist’s view because it meets the Y axis at a higher point, which indicates that the Accountants believe that firms are committed to a higher minimum level of fixed costs. This is because although a firm may reduce its fixed costs to a lower level, as in the Economist’s interpretation, the firm can only do this by redundancies and shutting down plants. As the Accountants model only represents a relevant range, the fixed costs cannot be reduced to this level in the short run, when this interpretation is extended outside of the relevant range, a stepped fixed cost and total function will be seen, as in figure 3. The other difference is that the revenue function is linear. This is because in the short run, firms cannot change the price of their products easily; it may also be because of firms competing on non-price, rather than price competition. As Accountants make no attempt to extend the revenue function outside of the relevant range, there is no need to model the firm’s decrease in product price to increase demand. The Accountant’s interpretation of the Cost Volume Profit model is more appropriate for Management decisions, as management decisions are not concerned with long term information. This is because the Board of Directors will be making the firms long term decisions. The information that the Economist’s model provides, includes a lot of information outside of this relevant range, this will affect the reliability of the data in the model. The data in the model will be less reliable as it is more difficult to accurately predict the behaviour of the cost and revenue functions, outside of the relevant range, as it is not based on past sales data. It will also be more expensive to compile the information needed as it is a more complex model. It can also be argued that some managers will find it difficult to interpret the Economists model, as the information will be more complex. Managers may wish to extend the CVP model to cover longer term decisions, will need to be aware of the long term behaviour of fixed costs. In the long term, firms will have a greater control over fixed costs, they can expand capacity by increasing floor space, hiring more supervisors and upgrading or purchasing new machinery. Which will give the firm’s fixed cost line a step function. Other factors will also affect the firm’s revenue and cost curves, such as advertising strategies, changes in political, environmental, social, economical, and legal factors, such as a change in VAT rate. These factors cannot easily be planned for and are not easily shown in long term CVP analysis, which is the main reason that CVP cannot accurately model long term production. One of the features useful for decision making, is the ability to display the information in different methods, one of these is the Margin of safety. This is the difference between the expected sales and break even sales, expressed as a percentage of the expected sales. It shows management the level that sales can fall by before the company’s revenue falls below the breakeven point. The information can also be displayed as two other charts. The first is a contribution chart, figure 4, in this chart, the fixed costs are shown as the difference between the variable cost line and the total cost line. The total contribution is displayed as the difference between the revenue line and the variable cost line. It is useful for showing a total contribution level at any level of output. The other presentation is the Profit volume graph, figure 5; this graph is useful because the other two charts to not directly display the profit at any given level of production as it must be calculated. The P-V graph simply displays the firms profit or loss at any given level of production. These two graphs will be useful for management decisions concerned with contribution or profits at a given level of production. Once again, the economist’s version of these two graphs would be far too complicated, and the information will not be reliable enough to base management decisions on. In the real world, firms will be producing multi products, and spreading the overhead costs across each of these products. A firm may wish to alter the CVP analysis to reflect their product mix. This is done by grouping production into batches. The batches revenue and variable costs will be defined as the total of the products in the batch. The values for the batch are then applied to the CVP chart in the same way as a single product. For the CVP model to be used effectively by managers, they must be aware of the assumptions made whilst preparing and gathering the information. If management are not aware of the assumptions made in the data, then they will be unable to draw relevant conclusions from the information. The assumptions i are that all other variables remain constant; there is a constant sales mix, total costs and revenues are linear functions of output, profits are calculated using variable costing, the analysis only applies to the relevant range, costs can be divided into fixed and variable elements, it only applies to the short term, and fixed costs do not change. In conclusion, the Accountant’s interpretation of the CVP analysis, as shown by the underlying assumptions, will allow managers to develop a more relevant understanding of the information, so that it can be used more effectively in decision making. If managers tried to use the economists CVP graph, the cost of gathering and interpreting the data would be high, as well as making the information more difficult to understand and less reliable. In the real world, the Accountant’s model may be considered too simplistic, as it relies on many assumptions and conditions, which are often not met. This is why it important to understand that the Accountant’s CVP model may not be applicable. For the CVP analysis to be effective, managers must be aware of the limitations of the model, otherwise they will be unprepared for any deviations from the outputs of the model.

Marginal Costs and Benefits

Marginal analysis is a technique used in microeconomics by which very small changes in specific variables are studied in terms of the effect on related variables and the system as a whole. Marginal costs and benefits are a vital part of economics because they help to provide the relevant measurement of costs and benefits at a specific level of production and consumption (McCain, 2008). This is the reason why I’ve chosen this topic for my paper. We use economics in our daily lives without knowing it. It would be nice to have an unlimited source of income, where one doesn’t have to worry on how they spend. Of course to most cases, we don’t have that luxury so we must live on a budget. Analyzing the marginal costs will benefit us in the long run because when we live on a budget, we spend most of our lives trying to find the most out of our spending. Let’s say that one person who lives on a tight budget, but they would like to have a nice vacation in one point of their lives. They would work toward that point and find out how much they would need for the costs of the trip. Every dollar now becomes crucial to their spending because we must know how much we can afford and have to be wise about it. We cannot go out there and start spending like mad because in the end we’ll ask ourselves, â€Å"Now how are we going to pay this off? † So calculating within the budget is necessary, but keeping in mind that we should be able to actually enjoy the vacation without being tedious of every single cent that is coming out of our pocket. Let’s say that we have a budget of $2000 total to go on this trip. Looking at the prices of the airfare, transportation, food, lodging etc. , we have to see much this would all cost us so therefore we can know how much money is left to us to spend on certain material items we may come across to when we are on vacation. There’s always something that one could find that raises the question, â€Å"I should buy this because I wouldn’t be able to find it where I am currently living. † When we calculate all the costs, we will see how much it would benefit us in the long run. The benefits of this situation is that if we find deals and discount for the necessary factors of our trip, we have more spending money to enjoy our vacation, buying things without that guilt factor because we know it’s within our budget.