Adopting Thorium Energy

When it comes to nuclear power most people would think about uranium. Our current state of nuclear power harnesses power through nuclear fission. The heat generated from this process boils water which drives massive steam turbines to create electricity. While this sounds like a fairly simple process the dangers it presents are massive. Reactor core meltdowns and the waste products are serious dangers the environment. There is an alternative element that can be used in place of uranium which is more efficient, abundant, and most importantly†¦safer. That element is thorium. Thorium is a naturally occurring radioactive chemical element. It is named after Thor, the Norse god of thunder. When used in a system for generating electricity its waste materials are 10 – 1000 times less long lived than uranium. This provides profound benefits over uranium when it comes to storing waste products. Thorium provides a greater energy yield than uranium; 5,000 tons of thorium is equivalent to about 61,000 tons of uranium. Those amounts are what’s needed to provide energy to the entire planet. At this point you’re probably wondering why we’re not using it if it’s safer and more powerful. Thorium has had a complicated history. Not because of any potential dangers it may have presented, but the potential dangers it didn’t possess. Uranium based nuclear power plants serve another purpose. Their waste products aid in the creation of weapons. Thorium’s waste products are not as easily weaponized. During the cold war governments were hesitant about funding a fledgling source of energy. Instead they opted to continue to invest and expand the infrastructure of the established uranium based nuclear plants. The last government funded thorium reactor was shut down in 1973 and thorium research nearly died along with it. In short; the benefits of weapons were chosen over having a safer and more energy independent future. The very nature of thorium allows for a facility orders of magnitude safer than the uranium nuclear power plants. When a nuclear power malfunctions or is damaged there is possibility of it exploding and releasing radioactive aterials into the atmosphere. The three worst nuclear power plant disasters occurred in 1979 with Three Mile Island, Pennsylvania; 1986 with Chernobyl; and in 2011 with the disaster in Fukushima, Japan. Chernobyl is estimated to remain uninhabitable for approximately 20,000 years while Fukushima is expected to remain so for 20 years or more. Entire cities abandoned do to the inherent danger of uranium based nuclear energy. Thorium has a sort of built-in fail-safe in that it requires extremely high temperatures to operate. This is alone makes for one its safest qualities. Without going into too much detail; if a thorium power plant were to lose power the devices heating its reactor tank would stop working. This would decrease the operating temperatures of thorium and its reactions would cease. The thorium would then be drained into a collection tank through the force of gravity. Unlike uranium power plants; thorium has no need to use water as a coolant. In an emergency a thorium power plant can shut itself down without any human intervention. Only recently has thorium once again become a serious contender for replacing uranium. As countries move to dismantle their nuclear arsenals thorium moves closer to the forefront of an energy independent future. Not all countries are as forward thinking as others though. China is currently the most forward thinking when it comes to thorium and has already outlined plans to have a new thorium reactor by the end of the decade. Estimates show that China has enough thorium to power its electricity needs for 20,000 years. That amount of potential and safe energy is unheard of. The United States alone sits on a reserve of about 440,000 tons of thorium in storage. Remember that 5,000 tons could power the entire planet for a year. The total estimated thorium content on Earth is around 120 trillion tons. So much energy waiting to be harnessed. The United States has let politics get in the way of what truly matters for far too long. The main hurdle to building new thorium plants is that new regulations would have to be established first. Those who make their fortunes off the established nuclear power plants no doubt lobby politicians to prevent thorium from becoming the leading source of energy. America will hurt itself if it allows other countries to gain too much of a head start in thorium energy research. Though thorium is not without its hurdles; its potential cannot be denied or ignored any longer. It’s extremely energy dense. There will never be a shortage of it. It’s incredibly safe. The waste products are less long lived and cannot be made into weapons. Like the Norse god it was named after thorium is set to take the world by storm.

An Introduction to Management and Cost Accounting

International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8].Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems [8]. The benefits of ABC and its positive impact on firm’s performance motivated a numerous studies which examined various aspects of ABC.Among such studies are McGowan [11] who assessed the integrity of ABC success, Innes and Mitchell [4, 12] and Yanren [13] who conducted research on factors affecting ABC adoption, and Shield [3], Shields and McEwen [14], Gosselin [15] and Baired et al. [16, 17]who concentrated on factors influencing ABC success especially at the implementation stage. However, there is mounting evidence that suggests most of firms are experiencing problems in implementing ABC and, in some extreme cases, ABC implementation is not successful [3], which later resulted in abandoning the ABC systems altogether [15].Questions arise as to why ABC implementation is successful in certain companies and fails in others. Based on the contingency theory, researchers have argued that the reasons for different degrees of ABC success could be due to the different contextual factors faced by each firm. These have led researchers to recognize assessing factors that influence ABC success implementation as an important research area.The following are among the research that have been carried out to examine factors that influence ABC success: Anderson [18]; Shie ld [3]; McGowan and Klammer [19]; Krumwiede [20]; and Anderson and Young [21] This article has two main objectives; the first objective is to identify research gaps based on the revision of previous research and the second objective is to propose theoretical research framework for current research.This article is organized as follows: Section II presents a discussion of selected articles related to factors influencing ABC implementation and gaps or limitations of previous studies and suggestions for current research are stated in the section III and IV. The framework for current research is provided in section V, Section VI defines each research variable and the final section presents the conclusion. II. PREVIOUS RESEARCH In this section, selected ABC implementation empirical 144Abstract—In today’s advanced manufacturing and competitive environment, accurate costing information is crucial for all the kinds of businesses, such as manufacturing firms, merchandizing firms , and service firms. Argued to be superior to the traditional volume-based costing system, Activity-Based Costing system (ABC) has increasingly attracted the attention of practitioners and researchers alike as one of the strategic tools to aid managers for better decision making.The benefits of ABC system and its impacts on companies’ performance have motivated numerous empirical studies on ABC system and it is considered as one of the most-researched management accounting areas in developed countries. Previous research on ABC have examined pertinent issues related to ABC implementation such as the levels of ABC adoption in various countries, the reasons for implementing ABC, the problems related to ABC and the critical success factors influencing ABC.This paper reviews the research on ABC carried out within the last decade, from 1995-2008, and from the review research gaps are identified. Specifically, this paper examines the selection of factors influencing successful ABC i mplementation, variables used by previous research and the definitions and operationalization of the variables. The review reveals that past research concentrated mainly on behavioral, organizational, and technical variables as the main determinants of ABC success but very little research have been done to examine the roles of organizational culture and structure.Based on the research gaps identified, a research framework for future research is provided. Index Terms—Advanced Manufacturing Activity-Based Costing, ABC Success Environment, I. INTRODUCTION In today’s competitive and continually changing business environment, firms need to be vigilant of the impacts of the changes in the business environment and devise appropriate strategies to survive and prosper. Advancements in manufacturing and communication technologies have drastically changed the ways businesses conduct their activities.Adoption of advanced manufacturing technologies such as robotics and computerized manufacturing have resulted in significant changes in the manufacturing cost structure which have led academics and practitioners to argue that the traditional costing methods are no longer sufficient within this new manufacturing environment [1] (Johnson and Kaplan, 1987). This had resulted in the change from the traditional volume-based cost model to new costing methods such as Activity Based Costing (ABC) [2].Due to its ability in providing more accurate costing information and enhancing firms’ performance, ABC is International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X studies, which spanned 1995-2008 periods, were collected from four prominent refereed accounting research journals, in management accounting field: Journal of Management Accounting Research, Accounting, Organizations and Society, Management Accounting Research and British Accounting Review.Factors used by previous research to investigate the effect on ABC success impleme ntation are summarized, and stage of ABC implementation also is outlined. A. Technical Variables Early studies of ABC adoption and implementation undertaken by previous researchers concentrated on technical factors, such as identification of main activities, selection of cost drivers, problem in accumulating cost data. Example of these research are Cooper [9], Morrow and Connelly [22].However, technical factors alone may not be adequate to explain the factors influencing ABC success implementation. Cooper et al. [23] argued that the key problem during ABC implementation stage is that companies only focus on technical factors. They suggested that to make ABC implementation more effective, non-technical factors such as involvement of non-accounting in ABC implementation process, top management championship, adequate training program to employees about the objectives and benefits of ABC should be emphasized as well.Similar opinions were expressed by Shield [3] and Shields and McEwen [1 4]. Shield (1995) found no significant relationship between technical factors and ABC success. Shields and McEwen [14] also highlighted that sole emphasis on the architectural and software design of ABC systems leads to the failure of ABC implementation. Therefore many researchers have suggested that new variables should be considered to investigate factors influencing ABC success. B.Contextual, Behavioral and Organizational Variables Recognizing the research gaps in identifying factors that may affect ABC success, academicians shifted their focuses from technical factors to other variables, such as contextual, behavioral and organizational, culture, as well as organizational structure. Anderson [18] conducted a longitudinal investigation of ABC process in General Motor (GM) from a period of 1986 to 1993. In his research, he examined the effects of organizational variables and contextual variables, and segmented ABC implementation into four major stages, initiation, adoption, adapta tion and acceptance.He found that organizational factors, such as top management support and training for the ABC system affected various stages of ABC significantly, while contextual variables, such as competition, relevance to managers’ decisions and compatibility with existing systems produced different degree of impact on different stages of ABC. Shield [3] examined the relationships between diversity of behavioral, organizational and technical factors and the success of ABC implementation.She employed Shield and Young’s [24] framework and summarized behavioral and organizational variables as top management support, adequate resources, training, link ABC system to performance evaluation and compensation, non-accounting ownership, link ABC to competitive strategies as well as clarity of ABC objectives. She found that top management support, linkage to quality initiatives and to personal performance measure (pay/appraisal), implementation of training and resource ade quacy were the significant predictors in explaining ABC success.She also found that technical variables were not associated with ABC success. Shield’s findings are supported by other researchers, such as Shield and McEwen [14], who argued that a significant cause for unsuccessful implementations of ABC of several companies could be due to the emphasis of architectural and software design of the ABC system and less attention given to behavioral and organizational issues, which were identified by Shield [3]. Krumwiede and Roth [25] also stated that barriers of ABC implementation can be overcome if firms could give importance to behavioral and rganizational variables identified by Shield [3]. Similarly, Norris [26] agreed with Shield’s [3] findings that the association between ABC success and behavioral and organizational variables is stronger than with technical variables. She further highlighted that the impact of behavioral, organizational and technical should be focus ed at individual level. McGowan and Klammer [19] conducted a survey of 53 employees from 4 targeted sites in the U. S. o examine whether employees’ satisfaction levels are associated with ABC implementation by They also measured their perceptions of the factors associated with the degree of satisfaction, such as top management support; the degree of involvement in the implementation process; objectives clearly stated; objectives shared; training; linkage to performance evaluation system; adequate resources; information quality and preparer over user. Their results indicated that employees’ satisfaction with ABC implementation was positively related with clarity of objectives and quality of ABC information.Gosselin [15] carried out a survey of 161 Canadian manufacturing companies to examine the effects of strategic posture and organizational structure on adoption and implementation of general forms of Activity-based costing. He segmented the ABC implementation stage int o adoption and implementation. The research findings showed that a prospector strategy was associated with manager decision to adopt ABC, while centralization and formalization were significantly associated with ABC success implementation. Krumwiede [20] surveyed U.S manufacturing firms to study how contextual factors, such as the potential for cost distortion or size of firms; organizational factors, such as top management support, training or non-accounting ownership, affect each stage of ABC implementation process. His findings showed that the different factors affected the various stages of implementation of ABC and the degree of importance of each factor varies according to the stage of implementation. Contextual factors, such as usefulness of cost information, IT existence, less task uncertainty and large organizations were related to ABC adoption.Moreover, organizational factors, such as top management support, non-accounting ownership, and implementation training affect ABC success implementation. 145 International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X In another study by Anderson and Young [21], the relationship between organizational and contextual variables, such as organizational structures, task characteristics, management support, information technology and ABC success was examined.The result confirmed the importance of organizational factors (top management support and adequacy resources) during the ABC implementation stage. In South Africa, Sartorius et al. [27] carried out a mail survey to investigate the effect of organizational factors such as top management, adequate resources, coherence with organizational goals and strategy on ABC success. They found top management support and resources were the crucial factors in explaining ABC success. In the UK, Innes and Mitchell [4] and [12] surveyed the extent of ABC adoption among largest firms.The study aimed to find out factors influencing ABC success by u sing behavioral and organizational variables, and it was found that top management influenced ABC success significantly. In another study conducted by Khalid [28] using a questionnaire survey among the largest 100 firms in Saudi Arabia, ABC adoption was found to be positively related to diversity of products. In Malaysia, Ruhanita et al. [29] conducted a mail survey and a case study to examine that factors influencing ABC success, especially at adoption stage.They found the significant factors were cost distortion, decision usefulness, information technology and organizational factors. In addition, the findings showed that decision usefulness, top management support, link ABC to performance measure and compensation influenced the ABC success adoption significantly. A case study of one Chinese manufacturing firm was carried by Lana and Fei [30] in China. Their research aimed to examine some key success factors pertinent to ABC implementation within Chinese organizational and cultural setting.The research findings showed that top management support, hierarchical and communication structure and high proportion of dedicated professionals were the significant factors in determining ABC success implementation. Majid et al. [7] used a case study approach to describe the process of ABC implementation in a Malaysian service company and a Malaysian manufacturing company. In this research, they categorized ABC implementation into initiation and adoption, design, implementation and use of information.The purpose of the research was to find out the problems faced during ABC implementation, He found that the factors determining ABC success were top management support, suitable ABC software, and finally, ensuring that all affected employees understand and participate in the ABC implementation stage. And they also found that at different stages of ABC, the dominant factors influencing ABC success were also different. Colin et al. [31] adopted behavioral and organizational fac tors summarized by Shield (1995) to examine factors influencing the adoption and degree of success of ABC systems and determinants of that success.In their research, the targeted research population was manufacturing and service firms in the UK. They found that top management support, non-accounting ownership, adequate training provided to ABC determined the ABC success. Besides behavioral, organizational and technical variable, some researchers also indicated that the dimensions of national cultures could affect the level of ABC success [32, 33]. Brewer [32] used Hofstede’s taxonomy of work-related cultural values to examine the relationship between national culture and Activity-Based Costing system.In the study, Hofstede [34]’s work was applied to the case of Harris Semiconductor (HS), which has implemented ABC at plants in Malaysia and the USA. The results showed that the level of ABC success in Malaysia was higher than that of U. S due to high-power-distance and co llectivist cultures in Malaysia. In addition, Supitcha and Frederick [33] also included national culture’s dimension into framework in a case study of one Thai state-owned enterprise’s budgeting system.They found that due to cultural differences, modifications were required when the organizations in Thailand tried to implement ABC system in Thai environment. Apart from national culture, corporate culture factors were also tested by prior research. Baird, Harrison and Reeve [17] conducted a study to investigate the relationship between the extent of ABC adoption and the organizational variables of size and decision usefulness of cost information and business unit culture. In their research, data were collected by a mail survey questionnaire and samples were randomly selected from business units in Australia.The research finding showed significant relationships between ABC adoption and decision usefulness, cultural dimensions of outcome orientation and tight verse loose control. Baird, Harrison and Reeve [16] examined the relationship between success of activity management practices and organizational factors (top management support, training, link to performance evaluation and compensation, and link to quality initiatives), and organizational culture (outcome orientation, team orientation, attention to detail, as well as innovation).They adopted a survey questionnaire method on randomly chosen business units in Australia. The findings showed that two organizational factors (top management support, link to quality initiatives) explained the variations in success of activity management practices, such as ABC, and outcome orientation and attention to detail of organizational culture were associated with ABC success. They also stressed that compared with organizational culture, organizational factors had stronger associations with the ABC.Table 2. 1 presents a summary of the previous research discussed in this section, which highlights the factors inf luencing ABC success and the research method adopted by each research. TABLE 2. 1: A SUMMARY OF PREVIOUS RESEARCH RELATED TO ABC SUCCESS IMPLEMENTATION Author Shield (1995) Method Survey Variable Behavioral, organizational, technical Individual, organizational factors, technical, task and so on Stage Not specify All the stages Anderson (1995) Case 146International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X technical variables Innes et al. (1995) Gosselin (1997) Survey Behavioral & organizational variables Structure & strategy Adoption implement ation Survey Adoption & Implemen tation Not specify Not specify Not specify Not specify All the stage Implemen tation Adapted from Lana and Fei [30] III. GAPS FROM PREVIOUS RESEARCH From the review of previous research, this section highlights the gaps from previous research.First, as highlighted by Lana and Fei (2007) a majority of ABC research still was done in developed countries and very little research has been done in developing country, especially in Asian context. Thus it is necessary to identify whether the Asian culture and way of doing business may have a different impact on the extent of ABC adoption and implementation. Second, a majority of ABC research reviewed adopted the behavioral and organizational variables identified by Shield [3] to investigate factors influencing ABC success. So far only one research. which was conducted by Gosselin [15] examinedthe effect of organizational structure on ABC success among Canadian business units. The importance of organizational structure effect on management accounting practices is stressed by many researchers. For example, Damanpour [35] stated that whether an innovation can be successfully adopted or implemented to some extent is determined by the type of structure the a firm adopts, so the current study also will consider organizational structure as one of the predictors of ABC success.Third, few research have examined the eff ect of corporate culture on ABC success empirically. Hence it is necessary to examine the association between ABC success and corporate culture, as well as how important cultural factors might be relative to organizational, non-cultural factors [16]. Forth, very few studies have investigated the effect of national cultural on ABC and so far, only two researchers, namely, Brewer [32] and Supitcha and Frederick [33], have included this variable in their studies.Supitcha and Frederick [33] argued that national culture differences often require successful accounting practices in one country to be modified for effective use in another country. So the influence of national culture should not be ignored [32]), especially in developing countries, and differences in term of perceived ABC success could be explained by national culture. The next research gap is that some previous research did not specify the ABC implementation stage for example, Shield [3] and Brewer [32].According to Krumwied e and Roth [25], ABC implementation has six different stages. They are initiation, Adoption, Adaption, Acceptance, Routinization, Infusion, the final two stages are considered as â€Å"mature stage† [25]) and it is argued that at different stage, the dominant factors that determine ABC success implementation are also different. In order to investigate the factors influencing ABC success more accurately, the current research will concentrate on one particular stage of ABC implementation that is mature stage.Finally, the selected articles show most of ABC implementation research were conducted using quantitative method such as questionnaire survey, and there are very few research used qualitative method (see Table 2. 1). According 147 Norris (1997) McGowan & Klammer (1997) Foster & Klammer (1997) Brewer (1998) Krumwiede (1998) Anderson & Young (1999) Case Survey Behavioral & Organizational Behavioral & organizational Non Survey Case Survey National culture Contextual & organiza tional Organizational & contextual variables Interview &survey Supitcha et al (2001) Case National cultureNot specify Innes et al. (2000) Sartorius et. al (2000) Cotton et. al (2003) Khalid (2003) Baird et. al (2004) Ruhanita et al. (2006) Lana & Fei (2007) Survey Behavioral & organizational variables Organizational variables Behavioral & organizational variables Size, production, overhead Size, decision usefulness of cost information, culture Cost distortion, decision usefulness, IT, organizational Technical, behavioral, organizational, contextual factors Organizational factors, culture Organizational, technical factors Behavioral & organizational Behavioral, organizational &Adoption Survey Survey Not specify Adoption Survey Survey Adoption Adoption Survey & Case Case Adoption All the stage Baird et al. (2007) Sartorius et al. (2007) Colin et al. (2008) Majid et al. (2008) Survey Survey Survey Case Implemen tation Adoption Implemen tation Adoption & International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X to Cavana et al. [36], questionnaire survey of data collection often encounters problems of low response rate and to counter this problem researchers are encouraged to use multiple methods to collect data. IV.PROPOSED FRAMEWORK FOR FUTURE RESEARCH As very few empirical research have been done in developing countries on ABC adoption and implementation, future research should be conducted in developing nations, especially, in Asian countries such as China. Since China is one of the fastest growing economies in the world, it would be interesting to know if ABC success is affected by similar factors as in the western countries. Furthermore, since joining the WTO in the year of 2001, Chinese enterprises started adopting western management accounting techniques, thus it is necessary to know the impact of Chinese culture on the ABC success.Hence the current study will focus on ABC success among Chinese manufacturing companies. Kr umwiede and Roth [25] classified ABC implementation into different stages; initiation, adoption, adaption, acceptance, routinization, and infusion. It has been suggested in the literature that the dominant factors that determine ABC success implementation are also different at different stages [20]. A review of the literature shows that more research has been done to examine the determinant factors at the adoption and very few studies on implementation stage.Thus the current research will concentrate on one particular stage of ABC implementation, especially, the ‘mature’ stage (Routinization, Infusion). The current research will also examine the effect of structure on ABC success. It has been argued that in order to examine the effect of structure, the sample should come from only one industry. Gosselin [15] argued that different industries have different level of centralization, and formalization, and he suggested that a study should concentrate on one particular indus try.Similarly, Rotch [37] stated that compared with manufacturing firms, non-manufacturing firms are very different in terms of characteristics. For instance, hotels are different from manufacturing firms and output of non-manufacturing firms are extremely hard to determine. Moreover, activities in non-manufacturers, especially in service sectors are hard to be predicted, and also large proportion of total cost are joint costs, which often difficult to assign to output. Similarly, Clarke, Hill and Stevens [38] highlighted that significant differences exist in terms of cost structure between manufacturers and non-manufacturers.In non-manufacturing sector, direct labor and direct material cost are almost equal to zero, and fixed overhead costs are the dominant costs in the cost structure and this difference makes researching ABC application in this type of industry more problematic. Hence the current study will focus on manufacturing industry only and since ABC is more likely to be im plemented by larger firms [28], this research will also concentrate on large sized manufacturing business. As discussed in the earlier section, previous research has not systematically examined the effects of organizational structure and organizational culture on ABC success.This motivates the current research to investigate the effects of these variables on ABC success. V. RESEARCH FRAMEWORK A. Proposed theory The current research will adopt Contingency theory and organizational theory to develop the research framework. Contingency theory has been widely adopted to conduct research in management accounting field [39-41]. Contingency theory asserts that the design and application of control systems are contingent on the environment of the organizational setting in which these controls operate and function [39].It is widely used to explain the characteristics of management accounting system [42]. Waterhouse and Tiessen [43] stated that the design and structure of management control s ystem is contingent on number of factors; there are product diversity, cost structure, size, level of competition and degree of customization [44, 45]. Sartorius, Eitzen and Kamala [45] illustrated an example to explain the relationship between ABC and the contingency factors. They stated that increasing fixed costs leads to a need for more accurate cost allocation technique such as ABC.This is especially true for firms which produce more than one products as different product products use differential amounts of resources [17]. Competition is another contextual factor that leads to the emergence of more sophisticated costing system such as ABC. In addition, large sized firms are more likely to adopt ABC than smaller firms due to the size of overhead, number of activities needs to be coordinated, as well as limited resources[16, 45]. However, adoption and implementation of an innovation are totally different[41].Hence, Contingency theory alone may not be adequate to explain ABC impl ementation stage. Krumwiede [20] concluded from a survey among US firms that contextual factors may influence the ABC adoption stage while implementation stage is more associated with organizational factors. He also suggested that once a firm arrives at ABC implementation stage, it should pay attention to organizational factors. Hence, another theory should be applied to explain ABC implementation stage, which is organizational change theory [29].According to organizational change theory, changes in organizations could be classified into four categories: technology, products, structure, and culture [29]. Gosselin [15] categorized ABC implementation stage as the administrative procedure. Therefore, ABC could be considered as a structural change and its success is determined by top-down approach. Based on organizational change theory, Cooper and Zmud [46] divide IT innovation into six sequence stages; 1) initiation, 2) adoption, 3) adaptation, 4) acceptance, 5) routinization, as well as 6) infusion.They also stated that at various stages the dominant factors in determining IT innovation are also different. B. Research Framework In view of the discussion in the previous sections, the following framework is proposed, depicted by Figure 1, for this research. Prior research test the relationship between ABC success and behavioral, organizational variables, hence 148 International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X the current research will also base on Shield [3]’s model to examine the impact of behavioral, organizational variables on ABC success.In addition, it also will include two additional variables, organizational culture and structure as Gosselin [15] stated that effect of organizational culture and structure on ABC success should not be ignored. also will adopt those dimensions. As for ABC success, the current study will adopt McGowan ‘s [11] definition. McGowan [11] used four perspectives to measure A ctivity-Based Costing Management, namely users’ attitude, technical characteristics rating, perceived usefulness in improving job performance and impact on organizational process. This measure subsequently adopted by Byrne et al. 49] to test ABC success implementation in Australian context. In their research, they stressed that McGowan’s [11]definition provides the most robust measure, hence the current study will also apply McGowan’s [11] definition as the indicators as ABC success. REFERENCE [1] [2] [3] [4] [5] Johnson, H. T. and R. S. Kaplan, Relevance Lost: The rise and fall of management accounting 1987: Harvard Business School Press Kennedy, T. and J. Affleck-Graves, The impact of activity-based costing techniques on firm performance. 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Chen, The role of manufacturing practices in mediating the impact of activity-based costing on plant performance. Accounting, Organizations and Society, 2008. 33(1): p. 1-19. Cooper, R. and R. S. Kaplan, Profit priorities from activity-based costing. Harvard Business Review, 1991. 69(3): p. 130-135. Swenson, D. , The benefits of activity-based cost management to the manufacturing industry.Journal of Management Accounting Research, 1995. 7: p. 167-180. McGowan, A. S. , Perceived benefits of ABCM implementation. Accounting Horizons, 1998. 12(1): p. 31-50. [Innes, J. , F. Mitchell, and D. Sinclair, Activity-based costing in the U. K. ‘s largest companies: a comparison of 1994 and 1999 survey results. Management Accounting Research, 2000. 11(3): p. 349-362. Yanren, X. , S. Wenbin, and W. L. Thomas, Activiey–based costing popularity in china. Cost Management, 2008. 22(3): p. 40-48. Shields, M. D. and M. A. McEwen, Implementing activity-based costing systems successfully.Cost Management, 1996. 9(4): p. 15-22. Gosselin, M. , The effect of strategy and organizational structure on the adoption and implementation of activity-based costing. Accounting, Organizations and Society, 1997. 22(2): p. 105-122. Baird, K. M. , G. L. Harrison, and R. C. Reeve, Success of activity management practices: the influe nce of organizational and cultural factors. Accounting and Finance, 2007. 47(1): p. 47-67. Baird, K. M. , G. L. Harrison, and R. C. Reeve, Adoption of activity management practices: a note on the extent of adoption and the influence of organizational and cultural factors.Management Accounting Research, 2004. 15(4): p. 383-399. Anderson, S. W. , A framework for assessing cost management system changes: the case of activity based costing implementation at general motors, 1986-1993. Journal of Management Accounting Research, 1995. 7: p. 1-51. McGowan, A. S. and T. P. Klammer, Satisfaction with activity-based cost management implementation. Journal of Management Accounting Research, 1997. 9: p. 217-237. Krumwiede, K. R. , The implementation stages of activity-based costing and the impact of contextual and organizational factors. Journal of Management Accounting Research, 1998. 0: p. 239-277. Fig 1: Theoretical Research Framework Seven behavioral and organizational variables are importan t to cost management practices identified by Shield and Young [24]. They are: 1) Top management support; 2) linkage to competitive strategies, 3) performance evaluation and compensation, 4) non-accounting ownership, 5) sufficient resources, 6) training in designing, implementing and using cost management system and 7) consensus about the clarity of the objectives of the cost management system, so current study will use all this indicators as behavioral and organizational variables.Lana and Fei [30] reviewed past empirical research about factors influencing ABC success and summarized the technical used by prior research, they are software packages, gathering data on cost drivers, identifying activities, knowledge of data requirement and data collection, the participation of external consultants. The current study also employed Lana and Pan [30]’s definition and its measurement for technical variables. Whether a company can adopt and implement a management innovation can be sig nificantly affected by organizational structure [35].Burns and Stalker [47] classified organizational structure into mechanistic and organic, mechanistic organizations have higher level of centralization and formalization than that of organic structure [15]. Gosselin [15] found that ABC can be more successfully implemented in mechanistic organizations. Centralization and formation will be treated as indicators for organizational structure in current research. Organizational culture still produces significant on ABC success, as Skinner [48] pointed out uncaring culture leads to the failure of ABC. Baird et al. 16] used outcome orientation, team orientation, attention to detail, as well as innovation to examine the relationship between activity management success and organizational culture. And the current study [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] 149 International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X [21] An derson, S. W. and S. M. Young, The impact of contextual and process factors on the evaluation of activity-based costing systems. Accounting, Organizations and Society, 1999. 24(7): p. 525-559. [22] Morrow, M. and T.Connolly, Practical problems of implementing ABC. Accountancy, 1994. 113(1205): p. 76. [23] Cooper, R. and R. S. Kaplan, Activity-based systems: measuring the costs of resource usage. Accounting Horizons, 1992. 6(3): p. 1. [24] Shield, M. and S. M. Young, A behavioral model for implementing cost management systems. Journal of Cost Management 1989: p. 17-27. [25] Krumwiede, K. R. and H. P. Roth, Implementing information technology innovations: the activity-based costing example. SAM Advanced Management Journal (07497075), 1997. 62(4): p. 4-13. [26] Norris, G. , The formation of managers' views of ABC and their impact on the outcome of its se: a grounded theory case study' Accounting Research Journal 1997. 10(2): p. 180-200. [27] Sartorius, K. , C. Eitzen, and P. Kamala, Or ganizational Problems in respect of the implementation of activity-based costing in South Africa. Meditari Accountancy Research 2000. 8: p. 215-227. [28] Khalid, A. , Activity-based costing in Saudi Arabia's fargest 100 firms in 2003. Journal of American Academy of Business, Cambridge, 2005. 6(2): p. 285-292. [29] Ruhanita, M. and I. Daing Nasir, Activity based costing (ABC) adoption among manufacturing organizations – the case of Malaysia. International Journal of Business and Society, 2006. (1): p. 70-101. [30] Lana, Y. J. L. and P. Fei, The implementation of activity-based costing in China: an innovation action research approach. The British Accounting Review, 2007. 39(3): p. 249. [31] Mohammed, A. -O. and D. Colin, Organizational and behavioral factors influencing the adoption and success of ABC in the UK. Cost Management, 2007. 21(6): p. 38-48. [32] Brewer, P. C. , National culture and activity-based costing system: a note. Management Accounting Research, 1998. 9: p. 241 -260. [33] Supitcha, M. and H. W. Frederick, Cultural influences on the ABC implementation in Thailand's environment.Journal of Managerial Psychology, 2001. 16(2): p. 142-156. [34] Hofstede, G. , The cultural relativity of organizational practices and theories. Journal of International Business Studies, 1983. 14(2): p. 75-89. [35] Damanpour, F. , Organizational innovation: a meta-analysis of effects of determinants and moderators. Academy of Management Journal, 1991. 34(3): p. 555-590. [36] Cavana, R. Y. , B. L. Delahaye, and U. Sekran, Applied business research: qualitative and quantitative Methods, ed. 3rd. 2001: John Wiley & Sons Australia, Ltd. [37] Rotch, W. , Activity-based costing in service industries.Journal of Cost Management for the Manufacturing Industry 1990. 4: p. 4-14. [38] Cllarke, P. J. , N. T. Hill, and K. Stevens, Activity-based costing in ireland: Barriers to, and opportunities for, change. Critical Perspectives on Accounting, 1999. 10(4): p. 443-468. [39] Otley, D. T. , The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 1980. 5(4): p. 413-428. [40] Fisher, J. G. , Contingency theory, management control systems and firm outcomes: past results and future directions. Behavioral Research in Accounting, 1998. 10: p. 47. [41] Chenhall, R.H. , Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 2003. 28(2-3): p. 127-168. [42] Anthony, R. N. and V. Govindarajan, Management control system. 10th edition. 2002, New York: Mcgraw-Hill/Irwin [43] Waterhouse, J. H. and P. Tiessen, A contingency framework for management accounting systems research. Accounting, Organizations and Society, 1978. 3(1): p. 65-76. [44] Drury, C. and M. Tayles, Explicating the design of overhead absorption procedures in UK organizations.The British Accounting Review, 2005. 37(1): p. 47-84. [45] Sartorius, K. , C. Eitzen, and P. Kamala, The design and implementation of Activity Based Costing (ABC): a South African survey. Meditari Accountancy Research 2007. 15(2): p. 1-21. [46] Cooper, R. B. and R. W. Zmud, Information technology implementation research: a technological diffusion approach management science, 1990. 36(2): p. 123-139. [47] Burns, T. and G. M. Stalker, The management of innovation. 1961, London Tavistock Publications [48] Skinner, J. , Answers on ABC. Australian Accountant, 1998. 68(2): p. 46-49. [49] Byrne, S. , E. Stower, and P.Torry. Activity based costing implementation success in Australia. 2008 [cited 2008 26th August]; Available from: http://eprints. usq. edu. au/3719/1/Byrne_Stower_Torry. pdf. First Author: Mr. Zhang Yi Fei was born on Sept 9th, 1978. He obtained his bachelor degree in Accounting from Sichuan Normal University, Cheng Du City, Si Chuan province, China in the year of 2002. He obtained his Masters in Business Administration specializ ing in Accounting in 2005 from University Malaysia Sabah. Currently he is pursuing his PhD degree in Management Accounting at University of Malaya, Kuala Lumpur, Malaysia.Second Author: Che Ruhana ISA (PhD) is currently an associate professor in accounting at the Faculty of Business and Accountancy, University of Malaya (UM). She joined UM as a tutor in 1987 after obtaining the BBA (Accounting) from Oklahoma State University, USA. In 1990, she graduated from London School of Economics and Political Science with the degree MSc in Accounting and Finance. She obtained her PhD in Accounting from University Putra Malaysia in 2005. Her current research interests are management accounting change, management accounting and performance measurement systems in public sector organizations. 150

Does Absolute Freedom Exist Essay - 860 Words

Does absolute freedom exist? In Joel M. Charon’s article, â€Å"Are Human Beings Free?†, he explores this question. Charon makes it a point that the answer is not as simple as it may seem to be. Throughout the article he focuses a lot on the idea that human beings thoughts and actions are highly controlled by social forces. Charon sees freedom as a person s ability to control these aspects of life. He also believes â€Å"to be free means that the individual is active, not passive, is self-directed rather than directed, chooses direction rather than influenced† (Charon, 2012, p.111). In order to be free a person must have control over his/her thoughts. However, Charon realizes there are many social factors that influence our thoughts which in turn causes our freedom to become limited. It is also apparent that even if someone is able to think freely they may not be able to act freely on their thoughts, which again causes freedom to become limited. Along with this, the idea that the culture/society were born into is what shapes the way we think and act is brought up. Every culture has its own set of rules and beliefs that influence the people of that culture. Society plays a role by placing people into differing social classes. People in higher classes are taught to act, dress, and think differently than that of someone in a lower class. Social class also affects the opportunities a person may be given. People in the lower classes will have less opportunities than people in higherShow MoreRelated‘Freedom of Speech Means the Freedom to Offend.1372 Words   |  6 Pageshear. This sentence sums up the very essence of free speech; it is, as Orwell believed, the mother of all civil rights. Without the unconditional freedom to offend it cannot exist. Ideas are, more often than not, dangerous things. There is little point in having freedom of speech if it only defends the most popular and innocuous of opinions. 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Given ample time to consider the task, however, a simple, sufficient definition can present itself: freedom is the ability to choose, for any creature living life in any place in any time. There is no greater truth to the statement, and no underlying meanings; freedom is simply the ability to choose. Read MoreTruth Is Not Moral Truth1273 Words   |  6 Pagesdefines truth as â€Å"the property of being in accord with fact or reality.† With one universe, which follows a definite set of laws, only one reality exists. Therefore, with one reality, only one, absolute truth exists. In recent years, with â€Å"social progress,† truth has been under attack. Many are not willing to accept the truth as it is, as they view absolute fact as offensive and emotionally damaging. People are told that truth is relative; they are encouraged to tailor the truth to their opinionsRead MoreMonarchy Vs. Democracy By Thomas Hobbes And John Locke1655 Words   |  7 Pagesof Thomas Hobbes and John Locke, one can see that democracy creates the most beneficial outcome. Hobbes had a pessimistic view of people. He believed humans were selfish, doing anything to further their own position in life. Hobbes believed in an absolute monarchy, a government that gave all the power to a king or queen. Even though he distrusted democracy, he believed that a diverse group of representatives present the problems of the common people would prevent a king from being unfair and cruelRead MoreA Thesis Statement : Monarchy And Democracy1476 Words   |  6 Pagesgovernment is to protect individual liberties and rights. Locke notes in chapter 10 in his book, Second Treatise of Government, he uses the word â€Å"commonwealth†. Locke explains that he does not explicitly mean democracy. He rather uses â€Å"commonwealth† to accentuate that the community, regardless of its form of government, exists for the good of all. 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Under a sovereign leader all subjects have absolute liberty. Hobbes says that subjects are completely free because the only chains restraining them are lawsRead MoreAnalysis Of Kurt Vonnegut s Harrison Bergeron 873 Words   |  4 Pagesestablish both a complet freedom and absolute equality. You can see this in the constatnt struggle for social and economic equality of the black people in America from activist such as Frederick Douglass, and Booker T. Washington, to 1960‘s civil rights leaders such as Martin Luther King, Malcolm X. You can also see this in the struggle of the Gays and lesbians communities for marriage equality, and in Women the pursuit for equal rights in pay etc. Living in societies of total freedom and complete equality

Essay on Ericksons 8 Stages of Life - 2832 Words

Erikson’s 8 Stages- 1 Erikson’s 8 Stages of life PSY 240 February 10, 2012 Erikson’s 8 Stages- 2 It is human to have a long childhood; it is civilized to have an even longer childhood. Long childhood makes a technical and mental virtuoso out of man, but it also leaves a life-long residue of emotional immaturity in him. This was a quote stated by Erik Homburger Erikson the creator of the 8 stages of life. Erikson believed life is organized into eight different stages that start from they day you are born and continue until the day you die (Harder). Since adult life tends to last longer then childhood or teen years Erikson broke down the stages in experiences naming them young adult, middle aged adults, and older adults†¦show more content†¦Erikson’s 8 Stages- 4 This stage of life is also a stage that was too long ago to remember, and my daughter has yet to reach this age, but I have dealt with children of this age when I was a dance teacher, and autonomy is a huge factor in a child’s life. When I was teaching dance my three year olds thought they knew everything and they were quick to tell me â€Å"NO†. I also experienced shame and guilt in my class. I had a little girl and she just could not seem to copy what I was doing, and I could tell she was starting to upset herself. I walked over to her and worked with her until she had the dance move perfectly, and that shame and guilt she was feeling for not getting the move down quickly went away. She was that happy independent three year old that walked into my classroom. Even at a young age independence is highly noticeable but guilt can take over a child in seconds. That is why it is our job as adults and parents to make a child as happy and confident as possible. Play Age: 3 to 5 years initiative vs. guilt According to Arlene F. Harder, â€Å"During this period we experience a desire to copy the adults around us and take initiative in creating play situations. We make up stories with Barbies and Kens, toy phones and miniature cars, playing out roles in a trial universe, experimenting with the blueprint for what we believe it means to be an adult. (Harder)† Erikson stated that in this stage we normally become involved in anShow MoreRelatedErik Erikson’s Eight Stages of Development Essay1163 Words   |  5 PagesIn Erik Erikson’s theory he explains that in every stage, a positive or a negative attitude is developed within an individual. During our developing stages we are either successful or we fail. 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He clarified what occur during each stage and how they can have a long time effect on our behavior we fail to move across these stages properly. Freud’s psychoanalytic personality theory have three main component, the Id, ego and superego which work together to make a complex human behavior. Freud’s work have influence many other thinkers such as Fred Adler and Erickson. Adler believes that our behavior derived from our need forRead MoreDevelopmental Psychology : The Stages Of Development1191 Words   |  5 Pages2015 Erickson Essay Erick Erickson, a German psychoanalyst created a theory called the Stages of Development, which consist of eight phases. As a person passes though each stage they will attempt to resolve crises that are important to the process of life. These eight stages include building a sense of trust in others, discovering a sense of self, as well as preparing the forthcoming generation for the future. 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He traveled abroad and she never seen him again. Erickson was born a few years later in Germany in 1902, where she stayed with some aunts. Erickson never knew who his biological father was. His mother would never tell them (Erick Erickson, sharperRead MoreImportance Of Volunteering At Pine Meadow Elementary School1241 Words   |  5 PagesI am volunteering at Pine Meadow Elementary School. I volunteer from 8:30 – 9:50 in the morning every Monday, Tuesday, Thursday, and Friday. I am in Ms. Wurzbergers room and she teaches kindergarten class that consists of children ages 5-6. There are 20 children in the classroom with one teacher. One of the kids has a special teacher he walks around with all the time but they are not usually in the classroom. The classroom is set up with 4 tables spread around the room with 5 chairs at each tableRead MoreThe Psychosocial Theory Of Human Development832 Words   |  4 Pagesthat take place through eight stages. 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A Brief Note On Anorexia And Bulimia Nervosa - 1561 Words

In today s western society, an abundance of factors contribute to the way one thinks and feels about themselves physically, and essentially how one would act upon this. All over the world, messages and images of skinny women are engrossing people s lives, leaving negative and long-lasting affects behind. Current beliefs of western culture suggest one must obtain a perfect, which has become analogous to thin, physique in order to achieve happiness and success, causing many young women to feel negatively about themselves and potentially leading to dangerous eating disorders. Certain factors and beliefs of western culture, including the obsession with thinness, influence of the media, and society s backlash against feminism, all play a†¦show more content†¦Furthermore, those suffering from eating disorders experience restricted daily life activities. These eating disorders should not be ignored as it is evident that they are malicious and can take over one s life. It does no t help that standards of beauty are depicted as anorexic, making it difficult for the victim to recognize and overcome their illness. There is no one factor that is responsible for eating disorders, but rather several. A loss of self identity, poor self esteem, perfectionism, maturity fears, personality, genetics, and family dynamics are all factors that can play a role in contributing to these disorders(Lackstrom, 2014). Whether one feels as if they are always dependent on someone, has a failure to form an identity, or possesses a need for being perfect, this can lead to an eating disorder. It is these factors, alone or in combination, influenced by western culture that can shape an individual s vulnerability or predisposition to such illnesses. Eating disorders affect people of all races, classes, sexes, and ages. However, the vast majority of those affected are young women. Anorexia and bulimia commonly begin during adolescence or young adulthood, rarely affecting women over the age of forty. As stated in the Diagnosis and Statistical Manual of Mental Disorders(DSM), there is an an approximately 10:1 female-to-male ratio, of those affected with

Australian Policy and Monetary Policy Effectiveness

Question: Discuss abot theAustralian Policy and Monetary Policy Effectiveness. Answer: Introduction This paper will focus on a particular country and then see how the Central bank policies are overall impacting the situation in the country. The country of choice for this paper is Australia and the Central bank of the country is known as Reserve Bank of Australia. The paper will evaluate the objective and roles of the Central Bank and then look into the various macroeconomic indicators of Australia. Then the paper will explore the recent comments by Treasurer Mr. Morrison on the effectiveness of the monetary policy and finally paper will provide some recommendation which the country can look up to in the current scenario. Role of Central Bank in the Economy In this paper the country I have chosen for my assessment is Australia. The central bank of the country is known as Reserve Bank of Australia. The main objective of the Reserve Bank of Australia is guided by the Banking Act which was passed in 1959 (Cao, 2015). The main objective of RBA is to control inflation and maintain proper currency flow in the economy of the country. The other objective which overall guides the main objective is to maintain financial stability in the country and maintain high level of employment for the residents of the country. The banking act passed in 1959 is the governing regulation for RBA. The regulations of the Banking Act impose certain methods which can be used by RBA to perform its objective. The Central theme of these methods is the monetary policy stance which RBA need to work on. The monetary policy stance which the bank takes helps in determining the cash rate in the economy and in turn controls the money supply in the country. The ultra-lose mon ey policy is indicative of the fact that RBA is having focus on increasing money supply, increasing purchasing power and also to provide necessary push to the growth in the economy. On the flip side, tight monetary policy is indicative of controlling the money supply, reducing the inflation and also to control the excess liquidity in the system. The central bank of the country, Reserve Bank of Australia (RBA) is also responsible under the banking act to keep zero level of unemployment. This is a kind of ideal situation and in the practical world scenario the RBA is not able to meet that target. The primary role of RBA is to control inflation in the economy and maintain the financial stability of the country. RBA acts as the banker to the Government and all Governments banking need are taken care off by RBA. The tools available with the RBA are the monetary policy action and maintaining the currency flow in the country. As per the act the roles of RBA are broadly defined under three categories. These three broad categories are stability of the currency in the country; maintenance of employment in the country; and finally work for the economic prosperity of the residents (Manalo, 2015). Mr. Morrisons View on Effectiveness of Monetary Policy In this article, Treasurer Mr. Morrison highlights that in current situation how the central bank has reached a limit whereby it cannot reduce the interest rate further. He also argues that in the era of low interest rate, in some cases negative interest rate, monetary policy has lost its power to influence any major changes in the economy. He highlights that this is one of the major concerns which all major economies are facing in the current situation. The current cash rate in the economy is standing at 1.5%. However, Mr. Morrison also stated that his statement should not be taken up as a concern for RBAs independence but is only indicative of the fact that rates wont reduce any further in the coming times. The concern of the treasurer are pretty accurate, the ability of central banks all over the world to transmit policy actions to last mile in the population is questioned. Let us also take an example of India, where Central Bank has reduced benchmark rates by 1.5% in last 18 mont hs, but commercial banks have only been able to transmit some 0.60% to 0.75% to the consumers and corporates. This is happening across the world, take example of Europe which is facing constant period of deflation for last two years and even negative interest rates are not able to spur up demand. In a recent interview, the treasures Scott Morrison signaled that Reserve Bank of Australia now has limited capacity left to reduce interest rate any further (Robinson, 2015). He argued that in the world of such low interest rates, in some cases even negative interest rates, the monetary policy as a tool as lost its effectiveness. The ability of the monetary policy to create an impact and then influence matter in the economy is diminishing at a faster rate (Cao, 2015). He clarified in the same interview that he is not even questioning RBAs independence and his comments are not in that regard, but the current economic system has exhausted the effectiveness of the rate cut. Discussion on Effectiveness of the Monetary Policy Mr. Morrison in the article highlights how effectiveness of the monetary policy is diminishing across the world. I believe in the current situation this holds true. In a recent paper by IMF, the writer singles out Folk theorem and highlights how the increasing dependence on interest rate and quantitative easing to bring out a country of economic doldrums is nowadays yielding mixed results. The interest rate is increasing become highly ineffective, however quantitative easing is still yielding mixed results. The paper has done detailed study on different countries and the prevailing scenario in those economies. Some of the limitations which are now visible in developed economies are deflation and liquidity traps. Euro zone is a classic example of how the region is facing deflation and is not able to come out of it even after strong quantitative easing support and negative interest rate. Markets all over the world dont function as silos anymore (Manalo, 2015). The interlinking of trade , growth in globalisation has made all central banks to be dependent on one another. The central banks all over the world are dependent on each other and stance which they hold. Monetary policy tends to become ineffective if the discussion has no orientation and synchronization with what is happening in the world outside. Concern on the Long-Term Rating of the Country In current times Australia is also facing a concern related to long term rating of the country. Six months back global credit rating agency Standard Poors reduced the investing outlook of the country from stable to negative. The rating agency at that time has warned the Government that there is an urgent need to reduce the budgetary deficit which was rising at alarming rate. Currently SP has again warned the country that they might downgrade the rating of the country from AAA. This is cause of worry for the country as the rating downgrade will hurt the investment outlook and in turn will also impact the cost of borrowing. This will also increase the risk premia that foreign investors will demand from Australian investments. The increase in risk premia means the country wont be kept in same bracket of investment as it was used to be. It is only six months back when SP lowered the credit rating outlook of the country from stable to negative. This was the first such strong warning from the rating agency stating that AAA status was under visible threat. The rating agency warranted such action with rationale that country need to address is budgeted deficit. The key problem identified by SP is not the Federal debt, it is the record housing debt which the country is facing. This debt is significantly funded from the overseas market and as per rating agency this is one of the biggest risk that the country is facing (Manalo, 2015). At one end of the spectrum there is a requirement to push for growth so that savings can increase, however on the flip side the rate cutting capacity of RBA has diminished. Coupled with that even if RBA does a rate cut, effectiveness of the same is really doubtful in Australian economy. Major Economic Indicators Some of the major indicators for the current state of Australian economy are: As per the last available data on the GDP, the country has grown by 3.3% in The inflation in the economy has averaged at 1.3% The cash rate maintained by RBA stand at 1.5% The population of the country stood at 24.1 million and it is growing with an annual growth rate of 1.4% Unemployment rate in the economy stood at 5.6% and around 12 million people are currently employed in the system The services remain as the largest contributor to the Gross Domestic product with its share standing at 59%, followed by 9% in the construction sector, 7% in manufacturing, 6% in mining and 5% in retail trade If one looks at the debt levels of the country, they would be able to visualise the real risk matrix of the country. It is not the government debt which is the cause of worry, it is the debt which has been provided by foreign entities to housing sectors and the dominant commodity sectors. This is the biggest risk concern which has been raised by global rating agencies. The housing market is facing lot of trouble, the demands are muted; people are seeing foreclosures as the only option and new demand is not turning up to prepare for the cash flow of the previous demand. The global issues are hurting the country and hence monetary policy easing stance has been maintained for long. Some of the major global issues which have hurt the economy in recent times are Brexit and the outcome of the United States presidential election. Both the results have not been in favour of investor expectations and that is one of the major reasons why fund outflow has taken place from investment destinations like Australia (Cao, 2015). What are the Estimates of Growth for the Country? As per OECD estimates the growth is expected to be 3% in 2018. There wont be any strong inflationary pressure in the economy as even some fall in unemployment rates will only reduce inequality. The OECD expects monetary policy tightening to start from the end of 2017 and this is in line with the stance of majority of developed nation. The monetary policy tightening is a necessity as per OECD, as it will unwind the current tension due to low interest rate environment, establishing some control on the situation in the housing market. The Government of Australia is looking forward to a strong period of fiscal consolidation. Some of the structural reforms which the government should implement are improvement in the tax structure. What are the GlobalIssues which are Hurting the Economy? The global issues like Brexit and outcome of United States Presidential election has increased the overall volatility in the global financial markets. Markets dont like uncertain environment and both these events have increased the quotient of uncertainty in the system. On the Brexit issue, markets want to see how the exit happens and what the terms under which it will happen are. Some of the critical question which Brexit has raised are; whether the Euro survive as a region with single common currency post Brexit; will other countries follow the same suit as happened with Britain; what will be the economic impact of Brexit; how will be the overall trade impacted from Brexit. On the other side unexpected win of the Republican candidate Donald Trump in the recently concluded United States election has again increased overall uncertainty quotient in the system. Some of the concerns which market foresee are; Whether globalisation will reduce in Trump era; what will happen with trade rel ations and pact which exist with Japan and China; what will be stance of Trump for the outsourcing industry; will the developed economies like United States become more closed in the upcoming times. These global issues are few of the major issues which the Government and RBA are facing. The Government is not in a position to reduce fiscal deficit by curbing spending as private capex is not picking up and it is the public spending which has driven the growth in the recent times. Coupled with this problem, RBA is not in a situation to provide any further rate cut because of long period of ultra-lose monetary policy. This double whammy on the economy of Australia is one of the prime problems which the country is facing. Industries and the related lobbies have been asking for low cost of borrowing so that next part of private capex can start. However the duration of lose monetary policy has already stayed for long and the current environment needs some tightening or status quo maintenance. The credit rating agencies are asking the Government of Australia to tighten the fiscal spending so that the deficit can be lowered. There main concern rises from the kind of debt which the housing market is standing on. Coupled with that the situation in the commodity market is also not improving and the Government is also not able to clearly predict the kind of pricing the key commodities in the country will be seeing in the near term. This is generally not the case but the global factors are definitely having its say and are raising the concern with the country. Authorised Deposit Institutes and their Workings Authorised deposit institutes in Australia are corporations which are governed under Banking Act, 1959 of the country. They are authorised to take deposits from the customers and hence governed by the Act. These institutions include the banks, credit unions and building societies. They effectively manage liquidity, interest rate risk in similar manner as the banks and other money market related companies. However if they are not operating as banks the reporting standards are different and format of working is also significantly different. Recommendation Some of the recommendation which the country can look forward to is releasing bonds in different denomination to take care of dollar denominated debt in the housing market. Once the housing market sees signs of revival, then the next step is to start monetary tightening and also focus on reducing fiscal deficit. The reduction in fiscal deficit and improvement in housing market scenario, will pave ways to avoid any rating downgrade. Hopefully the global environment during this period would be stable and there wont be any additional risk. Conclusion Monetary policy as a tool for establishing control over the financial stability of the country has lost it means by some degree due to impact of globalisation, more demand oriented economies. This is the prime reason why countries like Australia, European region are seeing that current monetary policy measures or quantitative easing is not leading to desired results. As per the FORK theory developed by wall street journal IMF this is increasingly becoming a challenge and still quantitative easing is helping matters but cash rates are seeing reduced impact. Recently markets all over the world has turned volatile due to the impact of Brexit and also due to the outcome of the recently concluded United States Presidential election. The victory of Republican candidate has increased the volatility of the system. This is one of the reason why policy actions and budget repair actions taken by Australian government has not been so effective. The reduction in fiscal deficit and improvement in housing market scenario, will pave ways to avoid any rating downgrade. References Cao, L., Hosking, A., Kouparitsas, M., Mullaly, D., Rimmer, X., Shi, Q., Stark, W. and Wende, S., 2015. Understanding the economy-wide efficiency and incidence of major Australian taxes.Treasury WP,1 Georgiadis, G. and Mehl, A., 2015. Trilemma, not dilemma: financial globalisation and Monetary policy effectiveness Hanif, M.N. and Iqbal, J., 2016.Assessing Monetary Policy Effectiveness in Rich Data Environment(No. 80). State Bank of Pakistan, Research Department Imam, P.A., 2015. Shock from graying: Is the demographic shift weakening monetary policy effectiveness.International Journal of Finance Economics,20(2), pp.138-154 Manalo, J., Perera, D. and Rees, D.M., 2015. Exchange rate movements and the Australian economy.Economic Modelling,47, pp.53-62 Rees, D.M., Smith, P. and Hall, J., 2016. A Multi?sector Model of the Australian Economy.Economic Record Rey, H., 2015.Dilemma not trilemma: the global financial cycle and monetary policy independence(No. w21162). National Bureau of Economic Research Robinson, T., Tsiaplias, S. and Nguyen, V.H., 2015. The Australian Economy in 201415: An Economy in Transition.Australian Economic Review,48(1), pp.1-14 Sheen, J., Trck, S. and Wang, B.Z., 2015. Daily Business and External Condition Indices for the Australian Economy.Economic Record,91(S1), pp.38-53 Sims, C.A., 2016, August. Fiscal Policy, Monetary Policy and Central Bank Independence. InDesigning Resilient Monetary Policy Frameworks for the Future: A Symposium Sponsored by the Federal Reserve Bank of Kansas City Wu, J.C. and Xia, F.D., 2016. Measuring the macroeconomic impact of monetary policy at the zero lower bound.Journal of Money, Credit and Banking,48(2-3), pp.253-291 Zhang, H.E., 2015.The sustainability of European Monetary Union. Evidence from business cycle synchronisation, monetary policy effectiveness and the Euro fiscal dividend(Doctoral dissertation, University of Bradford)

Pros Cons free essay sample

Most wireline phone companies charge more than what youd pay for most alternatives, and some are taxed more as well. There are some locations where getting new wired phone service is prohibitively expensive or even impossible. Long Distance and extra features like Call Waiting are normally included with alternative phones. More Features: Cellular and broadband phones normally include Long Distance, Voice Mail, Caller ID, Call Forwarding and more, usually at no additional charge. They also have Text Messaging and various forms of data service which are unavailable with a landline. Portability: If you move your home more than average (or if its on wheels), your phone and your number can stay with you. There are no installation charges. Temporary Usage: You can have phone service for the season in a vacation home or cabin, or on an extended stay at a hotel or home of a friend or relative without installing a separate line. We will write a custom essay sample on Pros Cons or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Unlimited Plans: Most alternatives offer a plan that includes Unlimited talk minutes and Long Distance, including cellular. Most cellular carriers have eliminated Unlimited Data plans, although there are some that include Data with some other restrictions. Anonymity: You can easily set up an account (especially prepaid cellular) with either no name or an alternative identity. Fewer Telemarketers: Nuisance calls are reduced because telemarketers want to target customers in certain geographic areas. They wont know where you are. Most telcos provide your landline number to telemarketers. With cellular its illegal for now. With broadband, it depends on the carrier who sets up your number. Internet Access: Your wireless phone can also be your connection to the Internet, either with an internal browser or tethered to your computer, and available wherever there is cellular coverage. Wireless broadband is also available separate from your cellular account. Wi-Fi for Multiple Devices: You can get a cellular modem that provides a wi-fi signal that can connect to up to 5 separate wi-fi devices. Its Green: Replace your fax with an Internet-based fax service like eFax or MyFax. com and stop wasting paper and ink. (Give your old fax to charity) Attitude: Some wired phone companies just treat their customers badly. Sometimes it feels better to leave at any price. Take your broadband wherever you go A mobile broadband connection is exactly that, which means that you can access your emails, check the sports results or watch YouTube videos no matter where you are, provided you have 3G reception. Stop paying for line rental Millions of people continue to pay for line rental on a home phone landline that they rarely use, just so that they can get broadband at home. With mobile broadband, theres no need to pay line rental potentially saving you over ? 100 a year. Plug and play technology All the software you need to connect to the internet is automatically installed when you first plug your USB modem into your laptop no need to set it up or call a technical support helpline. Flexible options available Mobile broadband customers can take advantage of some really great pay as you go tariffs from as little as ? 2 a day, or rolling one-month packages, meaning they only ever pay for what they actually need. Cons: Safety: If you need to call 911, public safety authorities wont automatically know where you are, youll have to tell them. Also, calls with alternative phones will not necessarily be routed to the closest agency. Also, you wont receive Reverse 911 calls alerting you to a public emergency in your neighborhood unless your local emergency center allows you to sign up your number and associate it with a local address. Security: Some businesses will not allow you to use their services without a traceable land line. This includes credit card companies, pizza shops and a few others, although this rule is slowly being relaxed. Satellite TV services want a landline-like plug for their equipment to call them each night. It does work with some broadband phone systems. Your satellite service can still work without it, but you will most likely pay an extra charge. Reliability: Wired telephone services have come as close to 100% reliable as is practical. Their network has substantial power backup, redundant circuits and years to get it right. Alternatives are improving but their networks can vary significantly. Cell sites and other communications nodes have a limited amount of backup power. In an extended power outage, such as after a hurricane or snowstorm, the service may not work, leaving you with no service. Corded phones work in power failures. Cable phones also have a lower level of reliability. Sound Quality: Some alternative phones dont sound the same or as good as a landline. While your alternative phone may sound fine to you, it may be difficult for others. Also, some broadband phone services just dump their audio into the Internet resulting in widely varying data travel times giving you significant sound delays. Lack of Service: You may be in a location where there are no wireless broadband alternatives or may have poor cellular coverage. This might be rectified by adding a cell site to your home. Broadband Speeds: While there are some fairly fast wireless broadband connections, it may be some time before they will compare to wired or cable connections. Malfunctions: Cell sites can stop working for various reasons. Repairs often need to be made on site and may take time. Broadband services require one or more pieces of equipment at your house which you will need to fix if it fails. Wireline equipment can normally be repaired at the central office. Murphys Law says breakdowns will happen at the worst possible time. You Have No Backup: Unless you have an extra cellular phone, if something happens to your main phone or its associated equipment, or your account, you cant just plug another phone into the wall. Inconvenience: Some alternative services only offer a single jack for one phone. If you want service throughout the house you either must go wi-fi or cellular. Otherwise, plan on using the phone near your computer or router. With a cell phone you need to keep it close to you if your home is large or on multiple floors. It Might be Difficult to Get a Job: Some employers require a Local number to consider you for a position. While you can change your out-of-town portable number to something local, there goes your Number For Life. Surprise Costs. Since you normally pay for cellular by the minute, you might talk a lot more than you think. Savings may be less than you expected when calculated long term. Broadband carriers are not regulated like wireline services and could make changes that you dont expect. You Wont Be Listed in the Phone Book. Some directories let you to pay for a personal listing, but others use that as a way to keep you as a landline customer. Alarm systems. Most existing dial-up alarm systems dont work with broadband phone connections. There are other alarm alternatives, including wireless. You May Not Be Able to Send or Receive Faxes. In some cases, faxing is not an issue. In others, you cant just plug in your fax machine. A better choice is to to use a paperless, web-based service like eFax or MyFax. com. Low download limits Even the most generous of mobile broadband tariffs only offer a download allowance of 15GB per month, and that could set you back ? AÂ  month on a two-year contract, while typical value packages offer less than 5GB a month. High costs for exceeding your limit Most mobile broadband providers charge a fee when you exceed your download limit. This is normally several pence per MB and costs can very quickly add up if youre not careful. Always keep an eye on your usage. Slower connections Although suppliers might advertise speeds of up to 10 or 12Mb, mobile broadband speeds rarely exceed the average of around 1Mb. This, combined with the tight usage limits, makes mobile broadband unsuitable for large downloads. Coverage Most of the UK is covered by the 3G mobile network, but coverage can be patchy in some rural areas, with speeds significantly slower in some parts of the country, so you should always check coverage in your area before signing up. PROS OF FIXED LINE NETWORK Reliability Land line/fix line phones can be more reliable than their cellular counterparts. Disconnected cables can disable land lines, but these problems are easily remedied. On the other hand, cellular phones are plagued by several different issues because they rely on a network of radio waves, cellular towers and satellites. In some areas, cellular service is plagued by dropped calls and fuzzy reception. Emergencies The reliability of land line phones makes them advantageous when it comes to emergencies. For example, if someone is hurt and needs immediate medical care, you do not have to worry about contending with poor reception. Land lines also provide a fixed location that emergency responders can rush to. On a cell phone, you must state your address or describe your location, which wastes precious time during a crisis. Sponsored Links