The European Union Essay Example | Topics and Well Written Essays - 500 words - 1

The European Union - Essay Example The European countries have a historic distaste for Americans and therefore, the nations do not want to do business with the superpower. The European need to safeguard their national and cultural boundaries compelled them to form a coalition that goes by the name of European Union. The member nations are having a common currency that they are using to fight the supremacy of American dollar. The origins of European Union are stemming from the prehistoric grudge which is present in Americans and Europeans for ages. The nation of England refused to join EU because of its close and friendly ties with America but presently, the nation is going through the rough times as it is alone in the international community of nations. The functions of European Union include facilitation of trade activities and mitigating national level disputes within member nations. The holistic purpose of the body is to help the region in becoming self sufficient and free from influence of America. The economic development and growth are the names of forces that can assist any nation or group of nations in the process of upholding their cultural and societal values. Rest of the world is busy in adapting their values in order to reflect more degree of Americanization. The nations of Europe are not willing to do that and because of this reason, they have created the featured institution. The European Union also governs defense agreements and renders help to distressed nations as well. The structure of the EU is not solid in nature and its offices are scattered across various cities in the European sector. The strategic leadership and direction is provided by the committees of European parliament. Nevertheless, the European parliament has been developed with the help of providing adequate representation to each and every member nation. The idea of EU is a practical application of pooling all resources and building synergetic relations and linkages. The European Union is a

Transdermal fentanyl patch in the use of chronic and non chronic pain

Transdermal fentanyl patch in the use of chronic and non chronic pain What is Fentanyl? Transdermal Fentanyl is a synthetic narcotic analgesic that is widely used in clinical anaesthesia which was originally synthesised by Dr Paul Janssen in the early sixties. It is approximately one hundred times more potent that morphine; which is thought of a the golden standard for opiods; this is where other opiods are compared and tested against morphine. Due to its potency, Fentanyl is mainly used for chronic long term illnesses such as cancer; however it is also used in short term acute pain for example child birth (a Fentanyl epidural would be used in this situation). Fentanyl can be administrated in many ways, which include: patch, ionysys, lollipop, injection and epidural. Biochemistry Janssens synthesis of fentanyl was to reactN-phenethylpiperidone with aniline to create 4-anilino-N-phenethylpiperidine. This compound is then reacted with propionyl chloride to give pure fentanyl, which is toxic and must be diluted in order to administrate to patients. American Chemical society 2005. Transdermal Fentanyl works by binding itself to the  µ-opioid receptors found in the Central Nervous System and the Gastro-Intestinal tract. It has high lipid solubility therefore it binds strongly to plasma proteins and can quickly cross the blood-brain barrier. This in turn causes the patient to have a sense of euphoria by increasing the patients pain threshold (the amount of discomfort a person feels enough to consider pain) and reducing the sensitivity of pain. Side effects and Benefits Transdermal Fentanyl is a more popular choice among patients as it provides a better quality of life and produces fewer side effects compared to that of other opiods. The side effects of Fentanyl are generic for all opiods, these include; respiratory depression (where the patients breathing becomes depressed and slow) muscle spasms, abnormal blood pressure (could be both high or low), nausea, vomiting, blurred vision, itching (caused by the substance making direct contact with the skin), euphoria, dizziness, weight loss and constipation. On the other hand there are many benefits that come from using the drug, example; A longer period of release i.e. Fentanyl patch can be released throughout the body for a seventy two hour period using the patch; and according to clinical studies provides an improved pain relief compared to that of morphine. A smaller volume is needed due to its potency and less constipation and less sedation occurs (the patient recovers motor function quicker). Converting a patient onto Transdermal Fentanyl Patch from Morphine The direct adaptation from Morphine to Fentanyl was first determined and tried by cancer patients. These patients are seen to have a steady and unvarying level of pain, and are receiving a constant dosage of Morphine to relieve it. On unstable pain Fentanyl does not work at its best. Below is an example of a patient receiving 100mg IV Morphine Sulphate and is going home on Fentanyl patch. 1) Convert to 24h oral MS dose 100mg/ IV MS = x 10mg/d IV MS 30mg/d oral MS 2) Adjust for cross-Tolerance 300mg/d oral MS x 0.65†  = 200mg/d oral MS †  Deriving a 35% reduction is equivalent to multiplying by 0.65 3) Convert adjusting to dose to Fentanyl Transdermal Patch dose 200mg/d oral MS = 55 µ/hr Fentanyl Patch 3.6 4) Round to closest Fentanyl Patch dosage from (25, 50, 75, 100) 55 µ/hr → 50 µ/hr Fentanyl patch† Ã¢â‚¬   † Ã¢â‚¬  Replace patch every 3 days 5) Provide oral morphine q2-4h for a break-through -pain at 10% of 24hr period total 200mg/d oral MS x 0.10 = 20mg oral MS q2-4h prn breakthrough pain Ali Olyaei PharmD, 2005 Fentanyl patch The Fentanyl patch is generally deliberated if there is no access oral for the patient and is unable to take Fentanyl orally in a tablet/lozenge form or If the patient is reluctant to continue on morphine to due unpleasant side effects such as constipation, tolerance; or if the patient is know to overdose or not taking the medication this is where the patient will become supervised. The Transdermal Fentanyl patch is often seen as the most common and easy way to treat chronic and non-chronic pain. It allows the patient to self administer the drug at home and has the longest effect on the body. (Margaret Gibbs 2009) The Patch can also be assisted by the lollipop, by using it as a top up mechanism to pain relief. Many health care professionals suggest that the patch should only be used for patients who are opioid-tolerant and cannot successfully manage there pain with other dugs such as morphine. The Patch can come in two forms which include; a Reservoir patch, where the patch is suspended in a matrix and placed onto the skin; and a Matrix patch where the drug is distributed evenly throughout a matrix. Reservoir Patch The principle of this patch is to understand and evaluate the stability and skin penetration profiles of Fentanyl. For this patch the Fentanyl is limited within a reservoir within the patch in a gel form. Dangerous drugs, Justinian Lane 2010 Matrix Patch Unlike the Reservoir patch there is no Fentanyl gel contained within the patch. This style of patch places the Fentanyl within the adhesive so it makes direct contact with the skin. (Causing the side effect of itching). This design of patch is seen as safer as is it unable to leak gel. Dangerous drugs, Justinian Lane 2010 How to apply the Patch There are many guidelines according to Drug and Therapeutics Committee August 2009; that a patient is required to follow in order to use the patch successfully. * Apply to clean, hairless skin such as the upper arm (which has not exposed to radiotherapy) and seize in place for 1 minute. * The patch works by creating a deposit of drug under the skin through the pores of the skin. * The patch should be replaced every 72 hours. Rotate position so not to irritate the skin. * Avoid direct heat and if the patient has a fever observe for opioid toxicity. * Fentanyl is causes less constipation than morphine. Therefore use half the dose of laxative if needed and repeat. * Prescribe strong opioid for breakthrough with either immediate release morphine sulphate /oxycodone or subcutaneous strong opioid The Patch works by releasing Fentanyl (either from the matrix gel or the Fentanyl Adhesive) into the body fats through the pores of the skin, which in turn releases the drug slowly and constantly around the bloodstream eventually passing the blood brain barrier allowing it to bind to  µ-opiod receptors, giving a constant pain relief of between forty-eight and seventy-two hours which is usually constant. However, it takes approximately four- twelve hours for the patch to begin releasing Fentanyl into the body. At this point the Fentanyl lollipop would be used to keep the patients pain relief up. Dosage is based on the size of the patch and absorption rate is usually regular, depending on many factors which include body temperature, size of the patient, skin type, quantity of body fat, and placement of the patch; can all have major effects on pain relief and dosage. Fentanyl patches are manufactured in five sizes: 12.5  µg/h,25 µg/h, 50 µg/h, 75 µg/h and 100 µg/h. Fentanyl Lollipop The Transdermal Fentanyl Lollipop is a fast end effective method of administrating the drug, as the drug enters the body via mucous membranes in the mouth. It is primarily used as a top up method of pain relief in conjunction to the Fentanyl Patch, when the patient requires it. It is an beneficial form of administration as the lollipop doesnt require trained medical staff regarding administration Richard Payneb et al. It is preferred among patient as it is portable and fast-acting. The dosages for the lollipop are the following: 200  µg in gray 400  µg in blue 600  µg in orange 800  µg in purple 1200  µg in green 1600  µg in burgundy Fentanyl is prescribed after an assessment of the patients condition, medical history and known tolerance to pain medication, such as Morphine. In addition, the dosage is decided based on the severity of the pain over a twenty-four hour period. Conclusion To summarise Transdermal Fentanyl is a potent synthetic analgesic which was manufactured for the treatment of both chronic and non chronic pain management which include situations such as cancer or childbirth. It is widely used for the treatment of cancer as is it approximately one hundred times more potent than morphine which is described as the golden standard for opiods. The Fentanyl patch is manufactured in two different styles; Matrix and Reservoir; they work by diffusing the drug through the pores of the skin and allowing it to be transported around the bodys blood system furthermore crossing the blood barrier binding to the  µ-opiod receptors. The lollipop as a top up mechanism in conjunction according to the patients pain level. The patch is effective and preferred by patients as it has fewer side effects than the majority of opiods i.e. morphine, and provides the patient with a better quality of life as it can be administrated at home and last for approximately seventy-two hours. References ~ Margaret Gibbs, The role of transdermal fentanyl patches in the effective management of cancer painhttp, (June 2009) ://www.internurse.com Last accessed 1ts December 2009 ~ Last accessed 1st march 2010 (Online) http://www.medicinenet.com/fentanyl_transdermal_system/article.htm ~ Figure 1 (online) http://pubs.acs.org/cen/img/83/i25/8325fentanyl.gif ~ American Chemical society 2005 (online) Last accessed 10th March 2010 http://pubs.acs.org/cen/coverstory/83/8325/8325fentanyl.html ~ Drug and Therapeutics Committee August 2009 (online) Last accessed 12th March 2010 http://www.typepad.com/services/trackback/6a00d8341c716c53ef011571115245970c ~ Figure 2 (online) http://corpreform.typepad.com/.a/6a00d8341c716c53ef01157205fb1a970b-pi ~ Figure 3 (online) http://corpreform.typepad.com/.a/6a00d8341c716c53ef01157205fb2a970b-pi ~ Figure 4 (online) http://pi.watson.com/product_shot_images/00591_3213_72.jpg ~ Last accessed 12th march 2010 (online) http://www.fifeadtc.scot.nhs.uk/support/Fentanyl%20palliative%20care.pdf ~ Last accessed 12th march 2010 (online) http://www.typepad.com/services/trackback/6a00d8341c716c53ef011571115245970c ~ Richard Payneb et al (online) Oral transmucosal fentanyl citrate (OTFC) for the treatment of breakthrough pain in cancer patients: a controlled dose titration study, (1999) Pain 79 303-312, Last accessed www.sciencedirect.com 21/01/2010

The Microbiology of the Vibrio cholerae Bacterium Essay -- Biology Bac

The Microbiology of the Vibrio cholerae Bacterium Abstract Cholera is a deadly disease that has caused a worldwide phenomenon throughout history. Its imperative weapon, the Vibrio cholerae bacterium, has allowed cholera to seize control and wipe out a huge percentage of the human population. V. cholerae’s toxins are the primary causes of cholera’s lethal symptoms. The bacterium contains toxins that help it accomplish its job of invading the human system and defeating the body’s powerful immune system. With its sibling bacterium Escherichia coli, V. cholerae has become one of the most dominant pathogens in the known world. V. cholerae’s strategies in causing the infamous deadly diarrhea have been widely studied, from the irritation of the intestinal epithelium to the stimulation of capillary leakage, as well as the internal effects of the disease such as the Peyer’s patches on the intestinal walls. Overall, the Vibrio cholera bacterium has made cholera a tough disease to overcome, and because of its deadly virulence factors, cholera has become one of the most frightening diseases a human body could ever encounter. Introduction Cholera is a diarrheal illness in the intestinal tract caused by the gram negative bacterium Vibrio cholerae. Vibrio cholerae is a member of the family vibrionaceae and of the genus Vibrio, which are fresh, brackish, or saltwater dwelling anaerobes that have the ability to ferment. Vibrios are highly halophilic, which means that they need salt-rich environment in order to thrive. They are usually rod-shaped and are either straight or curved, and are very sensitive to acid. Vibrios are motile organisms that travel with a single flagellum, and depend on saccharose sugar and starch for their growth a... ...holera†. 2005. University of Wisconsin-Madison Department of Bacteriology. 20 July 2007. 4.) Finkelstein, Richard A. â€Å"Cholera, Vibrio cholerae O1 and O139, and Other Pathogenic Vibrios" 5.) "Vibrio cholerae." Online Image. 6 June 2001. MIT Design That Matters: Health Group Design Project. University of Wisconsin. 23 July 2007 6.) "Vibrio cholerae Attachment and Colonization in Experimental Rabbits." Online Image. Cholera, Vibrio cholerae O1 and O139, and Other Pathogenic Vibrios 23 July 2007 7.) "Sodium Movement." Online Image. Optimizing the Intestinal Health Of Baby Calves. Merriks Inc. 24 July 2007 The Microbiology of the Vibrio cholerae Bacterium Essay -- Biology Bac The Microbiology of the Vibrio cholerae Bacterium Abstract Cholera is a deadly disease that has caused a worldwide phenomenon throughout history. Its imperative weapon, the Vibrio cholerae bacterium, has allowed cholera to seize control and wipe out a huge percentage of the human population. V. cholerae’s toxins are the primary causes of cholera’s lethal symptoms. The bacterium contains toxins that help it accomplish its job of invading the human system and defeating the body’s powerful immune system. With its sibling bacterium Escherichia coli, V. cholerae has become one of the most dominant pathogens in the known world. V. cholerae’s strategies in causing the infamous deadly diarrhea have been widely studied, from the irritation of the intestinal epithelium to the stimulation of capillary leakage, as well as the internal effects of the disease such as the Peyer’s patches on the intestinal walls. Overall, the Vibrio cholera bacterium has made cholera a tough disease to overcome, and because of its deadly virulence factors, cholera has become one of the most frightening diseases a human body could ever encounter. Introduction Cholera is a diarrheal illness in the intestinal tract caused by the gram negative bacterium Vibrio cholerae. Vibrio cholerae is a member of the family vibrionaceae and of the genus Vibrio, which are fresh, brackish, or saltwater dwelling anaerobes that have the ability to ferment. Vibrios are highly halophilic, which means that they need salt-rich environment in order to thrive. They are usually rod-shaped and are either straight or curved, and are very sensitive to acid. Vibrios are motile organisms that travel with a single flagellum, and depend on saccharose sugar and starch for their growth a... ...holera†. 2005. University of Wisconsin-Madison Department of Bacteriology. 20 July 2007. 4.) Finkelstein, Richard A. â€Å"Cholera, Vibrio cholerae O1 and O139, and Other Pathogenic Vibrios" 5.) "Vibrio cholerae." Online Image. 6 June 2001. MIT Design That Matters: Health Group Design Project. University of Wisconsin. 23 July 2007 6.) "Vibrio cholerae Attachment and Colonization in Experimental Rabbits." Online Image. Cholera, Vibrio cholerae O1 and O139, and Other Pathogenic Vibrios 23 July 2007 7.) "Sodium Movement." Online Image. Optimizing the Intestinal Health Of Baby Calves. Merriks Inc. 24 July 2007

Archaisms and historisms Essay

Introduction We often hear about words being added to dictionaries as they become part of everyday vernacular, but have you ever heard about any words that get removed? Some people argue that if a word has existed at some point in time then it merits a place in the dictionary. After all, who knows when someone may come across it in an old text and need to look up the definition? Others say that dictionaries should reflect the language that we use here and now, and so those words which have become obsolete in everyday language should no longer have a place in the dictionary. Language and culture are constantly changing, so how do we keep up with these changes without losing our past? The article is intended to go back in time and to disclose archaisms in the English language. Different groups of archaisms, the difference between archaisms and historisms, periods of their development, stylistic features, semantic groups and other problems got their reflection in the article. Different viewpoints of scientists, the aim of using archaisms in belles-lettres and their classification are presented and illustrated by the examples in Russian and English. 1. How do words in everyday language become obsolete? The vocabulary of a language never remains stable. There are constant changes in the semantic structure of any language. Words appear, undergo a number of phonetic and semantic changes and finally pass completely out of use. The disappearance of various things, phenomena, etc. causes either com ­plete disappearance of their names or turns them into  «representatives » of a previous epoch. Many words become obsolete in ordinary language, but remain in poetry, in books conforming to a definite style, in oratory, etc. A great many archa ­isms survive in English dialects. Thus the fate of obsolete words may be different. We distinguish two groups of obsolete words: archaisms proper and historical terms (historisms). Before turning to them it is of primary importance to distinguish the terms †archaic† and †obsolete†. The terms â€Å"archaic† and â€Å"obsolete† are used more or less indiscriminately by some authors. The meaning of these temporal labels, however, can be somewhat different among dictionaries. The label archaic is  used for words that were once common but are now rare. Archaic implies having the character or characteristics of a much earlier time. Obsolete indicates that a term is no longer in active use, except, for example, in literary quotation. Obsolete may apply to a word regarded as no longer acceptable or useful even though it is still in existence. In the American Heritage Dictionary of the English Language, (Boston: Houghton Mifflin [4th ed.], 2004) the archaic label is described this way: â€Å"This label is applied to words and senses that were once common but are now rare, though they may be familiar because of their occurrence in certain contexts, such as the literature of an earlier time. Specifically, this label is attached to entry words and senses for which there is only sporadic evidence in print after 1755.† The AHD describes the obsolete label thus: â€Å"The label obsolete is used with entry words and senses no longer in active use, except, for example, in literary quotations. Specifically, this label is attached to entry words and senses for which there is little or no printed evidence since 1755.† In Merriam-Webster’s Collegiate Dictionary, 11th Edition (Springfield, MA: Merriam-Webster, 2003), the Explanatory Notes say, â€Å"The temporal label obs for obsolete means that there is no evidence of use since 1755. The label obs is a comment on the word being defined. When a thing, as distinguished from the word used to designate it, is obsolete, appropriate orientation is usually given in the definition. The temporal label archaic means that a word or sense once in common use is found today only sporadically or in special contexts.† Random House Dictionary defines an obsolete word as one â€Å"no longer in use, esp. out of use for at least a century†, whereas an archaism is referred to as â€Å"current in an earlier time but rare in present usage†. However, it should be pointed out that the borderline between â€Å"obsolete† and â€Å"archaic† is vague and uncertain, and in many cases it is difficult to decide to which of the groups this or that word belongs. 2. Archaisms proper: etymology, main features and usage. In language, an archaism (from the Ancient Greek: á ¼â‚¬Ã Ãâ€¡ÃŽ ±ÃÅ ÃŽ ºÃÅ'Ï‚, archaà ¯kà ³s, ‘old-fashioned, antiquated’, ultimately á ¼â‚¬Ã Ãâ€¡ÃŽ ±Ã¡ ¿â€"ÃŽ ¿Ãâ€š, archaà ®os, ‘from the beginning, ancient’) is the use of a form of speech or writing that is no  longer current. This can either be done deliberately (to achieve a specific effect) or as part of a specific jargon (for example in law) or formula (for example in religious contexts). Many nursery rhymes contain archaisms. Archaic elements that occur only in certain fixed expressions (for example ‘be that as it may’) are not considered to be archaisms. Archaisms proper are obsolete words denoting real things and phenom ­ena, but the words themselves are no longer found in ordinary English: they were substituted by others, obsolete words becoming their stylistic synonyms. These words are moribund, already partly or fully out of circulation, rejected by the living l anguage. There are three stages in the aging processes of words: they become rarely used; they are in the stage of gradually passing out from use; these are the morphological forms belonging to the earlier stage of the development of the language [thee, thou], corresponding verbal endings [thou makest], many French borrowings [palfreu] they have already gone completely out of use and are still recognized by the English-speaking people. [me thinks = it seems to me, nay = no]. archaic words proper is no longer recognizable in modern English; such words were in use during the Old English period, are earlier dropped out of the language or have changed in the appearance so much that they have become unrecognizable [losso =lazy fellow]. While some words become obsolete from everyday language, others still exist but their meaning has changed over time. Words like fun fur have remained in use as their meanings have been adapted to current circumstances. Fun fur used to refer to cheap animal fur that had been dyed in several colors until the 1960s. Today it refers to synthetic fur. 3. Types of archaisms: lexical and grammatical archaisms and their peculiarities Generally we distinguish lexical and grammatical archaisms.  Grammatical archa ­isms are forms of words which went out of use with the development of the grammar system of the English language: -th – suffix of the 3rd person sing., Present Indef. Tense, e.g. hath, doth, speaketh; -st – 2nd person – dost, hast, speakest; art – 2nd person of the verb  «to be » pl.; thou, thee, thy, thine – pronouns; ye – plural, 2nd person. Lexical archaisms. Poetry is especially rich in archaisms. Words that are too well known and too often used do not call up such vivid images as words less familiar. This is one of the reasons which impel poets to use archaic words. They are  «new » just on account of their being old, and yet they are not utterly unknown to be unintelligible. The following are some of the most common lexical archaisms used in poetry: billow – Ð ²Ã ¾Ã ¹Ã ½Ã °; save – Ð ºÃ'€Ð ¾Ã ¼Ã µ; plain – Ð ¶Ã °Ã »Ã ¾Ã ²Ã °Ã'‚Ã'Å'Ã' Ã' ; behold – Ð ²Ã ¸Ã ´Ã µÃ'‚Ã'Å'; yon (yonder) – Ã'‚Ð ¾Ã'‚; eke – Ã'‚Ð ¾Ã ¶Ã µ; brow – Ã'‡Ð µÃ »Ã ¾; foe – Ð ²Ã'€Ð °Ã ³; ere – Ð ´Ã ¾; steed – Ð ºÃ ¾Ã ½Ã'Å'; morn – Ã'Æ'Ã'‚Ã'€Ð ¾; belike – Ð ²Ã µÃ'€Ð ¾Ã' Ã'‚Ð ½Ã ¾; damsel – Ð ´Ã µÃ ²Ã'Æ'Ã'ˆÐ ºÃ °; woe – rope; oft, oft-times – Ã'‡Ð °Ã' Ã'‚Ð ¾; mere â⠂¬â€œ Ð ¾Ã ·Ã µÃ'€Ð ¾, Ð ¿Ã'€Ã'Æ'Ð ´; hearken – Ã' Ã »Ã'Æ'Ã'ˆÐ °Ã'‚Ã'Å'; albeit – Ã'…Ð ¾Ã'‚Ã' , etc. Their last refuge is in historical novels (whose authors used them to create a particular period atmosphere) and, of course, in poetry which is rather conservative in its choice of words. So their main function is to sustain a special evaluated atmosphere of poetry. They form an insignificant layer of special literary vocabulary. On the whole they are detached from the common literary vocabulary. Thus, the use of archaic words is a stylistic device. In historical novels they create an atmosphere of the past. In the depiction of events of the present they assume the function of a stylistic device proper. The stylistic functions of the archaic words are based on the temporary perception of the event. Even when used in a terminological aspect they create a special atmosphere in the utterance. They form a rather insignificant layer of the special literary vocabulary. 1. They are used by authors to produce an elevated (Ð ²Ã ¾Ã ·Ã ²Ã'‹Ã'ˆ) effect. 2. They have a tendency to detach themselves from the common literary word-stock and assume the quality of terms denoting certain notions and calling forth poetic diction. Closely associated with archaisms are poetical words. The use of poetic words doesn’t as a rule create the atmosphere of poetry, but it substitutes its expressiveness. The common way of creating such words is compounding  [young-eyed, rosy-fingered]. Poetic words and expressions are understandable to a limited number of readers. In modern poetry words are often used in strange combinations [the sound of shame]. Poetic words in an ordinary environment may also have a satirical function. They can also be found in other styles, e.g. in journalistic style: proceed (go), the welkin (the sky), the vale (the valley), the devouring element (the fire). Archaic words – yclept (to call, name), quoth (to speak), eftsoons (again soon after) are good examples. They evoke emotive meaning. They color the utterance with the certain air of loftiness (elevation). But generally fail to produce a general feeling of delight. They are taken hacked, too outdate. These words are often used by modern ballet mangers (Ã' Ã ¾Ã'‡Ð ¸Ã ½Ã ¸Ã'‚Ð µÃ »Ã ¸ Ð ±Ã °Ã »Ã »Ã °Ã ´). Some poetical words and set expressions make the utterance understandable only to a limited number of readers. This poetical language is often called poetical jargon. â€Å"Alas! They had been friends in youth; But whispering tongues can poison truth And constancy lives in realms above; And life is thorny; and youth is vain; And to be wroth with one we love, Doth work like madness in the brain†¦Ã¢â‚¬  (Coleridge) Thou and thy, aye (â€Å"yes†) and nay (â€Å"no†) are certainly archaic and long since rejected by common usage, yet poets use them even today. (We also find the same four words and many other archaisms among dialectisms, which is quite natural, as dialects are also conservative and retain archaic words and structures). Numerous archaisms can be found in Shakespeare, but it should be taken into consideration that what appear to us today as archaisms in the works of Shakespeare, are in fact examples of everyday language of Shakespeare’s time. There are several such archaisms in Viola’s speech from Twelfth Night: â€Å"There is a fair behavior in thee, Captain, And though that nature with a beauteous wall Doth oft close in pollution, yet of thee I will believe thou hast a mind that suits With this thy fair and outward character. I prithee — and I’ll pay thee bounteously — Conceal me what I am, and be my aid For such disguise as haply shall become The form of my intent†¦Ã¢â‚¬  (Act 1, Sc. 2) 32 Further examples of archaisms are: morn (for morning), eve (for evening), moon (for month), damsel (for girl), errant (for wandering, e.g. errant knights), etc. Sometimes, an archaic word may undergo a sudden revival. So, the formerly archaic kin (for relatives; one’s family) is now current in American usage. Archaisms are also most frequently encountered in poetry, law, science, technology, geography and ritual writing and speech. Their deliberate use can be subdivided into literary archaisms, which seeks to evoke the style of older speech and writing; and lexical archaisms, the use of words no longer in common use. Archaisms are kept alive by these ritual and literary uses and by the study of older literature. Should they remain recognized, they can be revived, as the word anent was in this past century. Because they are things of continual discovery and re-invention, scie nce and technology have historically generated forms of speech and writing which have dated and fallen into disuse relatively quickly. However the emotional associations of certain words (for example: ‘Wireless’ rather than ‘Radio’ for a generation of British citizens who lived through the second world war) have kept them alive even though the older word is clearly an archaism. A similar desire to evoke a former age means that archaic place names are frequently used in circumstances where doing so conveys a political or emotional subtext, or when the official new name is not recognized by all (for example: ‘Persia’ rather than ‘Iran’, ‘Bombay’ rather than ‘Mumbai’, ‘Madras’ rather than ‘Chennai’). So, a restaurant seeking to conjure up historic associations might prefer to call itself Old Bombay or refer to Persian cuisine in preference to using the newer place name. A notable contemporary example is the name of the airline Cathay Pacific, which uses the archaic Cathay (â€Å"China†). Archaisms are frequently misunderstood, leading to changes in usage. One example is found in the phrase â€Å"the odd man out†, which originally came from the phrase â€Å"to find the odd man out†, where the verb â€Å"to find out† has been split by its object â€Å"the odd man†, meaning the item which does not fit. The compound adverbs and prepositions found in the writing of lawyers (e.g. heretofore, hereunto, thereof) are examples of archaisms as a form of jargon. Some phraseologies, especially in religious contexts, retain archaic elements that are not used in ordinary speech in any other context: â€Å"With this ring I thee wed.† Archaisms are also used in the dialogue of historical novels in order to evoke the flavour of the period. Some may count as inherently funny words and are used for humorous effect. 4. Historims: main features and classification Historisms are names of things and phenomena which passed out of use with the development of social, economical, cultural life of society but which retain historical importance. Unlike archaisms, historical terms have no syno ­nyms in Modern English: they are only names of things and notions which refer to the past of the English people. The sphere of these words is restricted with scientific literature or with books and novels dealing with certain historical periods. There are lots of his ­torisms in the historical novels of W.Scott and other English authors, e.g.: Historisms are very numerous as names for social relations, institutions and objects of material culture of the past. The names of ancient transport means, ancient clothes, weapons, musical instruments can offer many examples. Before the appearance of motor-cars many different types of horse-drawn carriages were in use. The names of some of them are: brougham, berlin, calash, diligence, fly, gig, hansom, landeau, phae ton, etc. It is interesting to mention specially the romantically metaphoric prairie schooner ‘a canvas-covered wagon used by pioneers crossing the North American prairies’. There are still many sailing ships in use, and schooner in the meaning of ‘a sea-going vessel’ is not an historism, but a prairie schooner is. Many types of sailing craft belong to the past as caravels or galleons, so their names are historisms too. The history of costume forms an interesting topic by itself. It is reflected in the history of corresponding terms. The corresponding glossaries may be very  long. Only very few examples can be mentioned here. In W. Shakespeare’s plays, for instance, doublets are often mentioned. A doublet is a close-fitting jacket with or without sleeves worn by men in the 15th-17th centuries. It is interesting to note that descriptions of ancient garments given in dictionaries often include their social functions in this or that period. Thus, a tabard of the 15th century was a short surcoat open at the sides and with short sleeves, worn by a knight over his armour and emblazoned on the front, back and sides with his armorial bearin gs. Not all historisms refer to such distant periods. Thus, bloomers — an outfit designed for women in mid-nineteenth century. It consisted of Turkish-style trousers gathered at the ankles and worn by women as â€Å"a rational dress†. It was introduced by Mrs Bloomer, editor and social reformer, as a contribution to woman rights movement. Somewhat later bloomers were worn by girls and women for games and cycling, but then they became shorter and reached only to the knee. A great many historisms denoting various types of weapons occur in historical novels, e. g. a battering ram ‘an ancient machine for breaking walls’; a blunderbuss ‘an old type of gun with a wide muzzle’; breastplate ‘a piece of metal armour worn by knights over the chest to protect it in battle’; a crossbow ‘a medieval weapon consisting of a bow fixed across a wooden stock’. Many words belonging to this semantic field remain in the vocabulary in some figurative meaning, e. g. arrow, shield, sword, vizor, etc. Thus we can distinguish the following types of historisms: 1. words of social position: yeomen – Ð ¹Ã ¾Ã ¼Ã µÃ ½, knight – Ã'€Ã'‹Ã'†Ð °Ã'€Ã'Å', scribe – Ð ¿Ã ¸Ã' Ã µÃ'†; 2. names of arms and words connected with war: battle ax – Ð ±Ã ¾Ã µÃ ²Ã ¾Ã ¹ Ã'‚Ð ¾Ã‚ ­ Ð ¿Ã ¾Ã'€Ð ¸Ã º, musket – Ð ¼Ã'Æ'Ã'ˆÐ ºÃ µÃ'‚, visor – Ð ·Ã °Ã ±Ã'€Ð °Ã »Ã ¾, warrior – Ð ²Ã ¾Ã ¸Ã ½, sword – Ð ¼Ã µÃ'‡, gauntlet – Ã'€Ã'‹Ã'†Ð °Ã'€Ã' Ã ºÃ °Ã'  Ð ¿Ã µÃ'€Ã'‡Ð °Ã'‚Ð ºÃ ° = Ð »Ã °Ã'‚Ð ½Ã °Ã'  Ã'€Ã'Æ'Ð ºÃ °Ã ²Ã ¸Ã'†Ð °, archer – Ã' Ã'‚Ã'€Ð µÃ »Ã ¾Ã º Ð ¸Ã · Ð »Ã'Æ'Ð ºÃ °, spear – Ð ºÃ ¾Ã ¿Ã'Å'Ð µ; 3. types of vessels: galley – Ð ³Ã °Ã »Ã µÃ'€Ð °, frigate – Ã'„Ã'€Ð µÃ ³Ã °Ã'‚, caravel – Ð ºÃ °Ã'€Ð °Ã ²Ã µÃ »Ã »Ã °; 4. types of carts which went out of use: brougham – Ð ¾Ã ´Ã ½Ã ¾Ã ¼Ã µÃ' Ã'‚Ð ½Ã °Ã'  Ð ºÃ °Ã'€Ð µÃ'‚Ð °, chaise – Ã'„Ð °Ã' Ã'‚Ð ¾Ã ½, Ð »Ã µÃ ³Ã ºÃ °Ã'  Ð ¿Ã ¾Ã ²Ã ¾Ã ·Ã ºÃ ° Ã'  Ð ¾Ã'‚Ð ºÃ'€Ã'‹Ã'‚Ã'‹Ð ¼ Ð ²Ã µÃ'€Ã'…Ð ¾Ã ¼, hansom – Ð ´Ã ²Ã'Æ'Ã'…Ð ¼Ã µÃ' Ã'‚Ð ½Ã'‹Ð ¹ Ã' Ã ºÃ ¸Ã ¿Ã °Ã ¶, Ð ³Ã ´Ã µ Ã' Ã ¸Ã ´Ã µÃ ½Ã ¸Ã µ Ð ºÃ'Æ'Ã'‡Ð µÃ'€Ð ° Ã'€Ð °Ã' Ã ¿Ã ¾Ã »Ã ¾Ã ¶Ã µÃ ½Ã ¾ Ð ¿Ã ¾Ã ·Ã °Ã ´Ã ¸ Ð ¸ Ð ½Ã µÃ' Ã ºÃ ¾Ã »Ã'Å' ­ Ð ºÃ ¾ Ð ²Ã'‹Ã'ˆÐ µ Ð ¼Ã µÃ' Ã'‚ Ð ´Ã »Ã'  Ã' Ã µÃ ´Ã ¾Ã ºÃ ¾Ã ², coach – Ð ºÃ °Ã'€Ð µÃ'‚Ð ° (Ð ¿Ã ¾Ã'‡Ã'‚Ð ¾Ã ²Ã °Ã' ); 5. names of old musical instruments: lute – Ð »Ã'ŽÃ'‚Ð ½Ã' , lyre – Ð »Ã ¸Ã'€Ð °. So the number of  historisms which reflect the social life and culture of the past is very great. Conclusion Though many of the words discussed above are rather old-fashioned, outdate and are rarely used in modern society, they still have a unique place in the depositary of English word-stock. Thus they can be found in bigger dictionaries as they might be relevant to specific fields. Words and their meanings are always bound to specific contexts and times in which their meaning makes sense. Anyone learning a language needs to be aware of how words are used today and historically in order to correctly interpret and understand their meaning. So one should always keep up with the constant changes in language to make sure that their skills are the most appropriate for today’s modern world. Methodical literature 1. Ð Ã'‚Ã'€Ã'Æ'Ã'ˆÐ ¸Ã ½Ã ° Г. Б., Ð Ã'„Ð °Ã ½Ã °Ã' Ã'Å'Ð µÃ ²Ã ° О. Ð’., ÐÅ"Ð ¾Ã'€Ð ¾Ã ·Ã ¾Ã ²Ã ° Ð . Ð . ЛÐ µÃ ºÃ' Ã ¸Ã ºÃ ¾Ã »Ã ¾Ã ³Ã ¸Ã'  Ð °Ã ½Ã ³Ã »Ã ¸Ã ¹Ã' Ã ºÃ ¾Ã ³Ã ¾ Ã' Ã ·Ã'‹Ð ºÃ °: Ð £Ã'‡Ð µÃ ±. Ð ¿Ã ¾Ã' Ã ¾Ã ±Ã ¸Ã µ Ð ´Ã »Ã'  Ã' Ã'‚Ã'Æ'Ð ´Ã µÃ ½Ã'‚Ð ¾Ã ². ДÃ'€Ð ¾Ã'„Ð °, 1999 2. ГÐ ¸Ã ½Ã ·Ã ±Ã'Æ'Ã'€Ð ³, Ð ¡. Ð ¡. Ð ¥Ã ¸Ã ´Ã µÃ ºÃ µÃ »Ã'Å', Г. Ð ®. КÐ ½Ã' Ã ·Ã µÃ ²Ã ° Ð ¸ Ð . Ð . Ð ¡Ã °Ã ½Ã ºÃ ¸Ã ½. ЛÐ µÃ ºÃ' Ã ¸Ã ºÃ ¾Ã »Ã ¾Ã ³Ã ¸Ã'  Ð °Ã ½Ã ³Ã »Ã ¸Ã ¹Ã' Ã ºÃ ¾Ã ³Ã ¾ Ã' Ã ·Ã'‹Ð ºÃ °: Ð £Ã'‡Ð µÃ ±Ã ½Ã ¸Ã º Ð ´Ã »Ã'  Ð ¸Ã ½-Ã'‚Ð ¾Ã ² Ð ¸ Ã'„Ð °Ã º. Ð ¸Ã ½Ã ¾Ã' Ã'‚Ã'€. Ã' Ã ·. Ð’Ã'‹Ã' Ã'ˆ. Ã'ˆÐ ºÃ ¾Ã »Ã °, 1979. 3. Ð Ã'€Ð ½Ã ¾Ã »Ã'Å'Ð ´ И. Ð’. ЛÐ µÃ ºÃ' Ã ¸Ã ºÃ ¾Ã »Ã ¾Ã ³Ã ¸Ã'  Ã' Ã ¾Ã ²Ã'€Ð µÃ ¼Ã µÃ ½Ã ½Ã ¾Ã ³Ã ¾ Ð °Ã ½Ã ³Ã »Ã ¸Ã ¹Ã' Ã ºÃ ¾Ã ³Ã ¾ Ã' Ã ·Ã'‹Ð ºÃ °: Ð £Ã'‡Ð µÃ ±. Ð ´Ã »Ã'  Ð ¸Ã ½-Ã'‚Ð ¾Ã ² Ð ¸ Ã'„Ð °Ã º. Ð ¸Ã ½Ã ¾Ã' Ã'‚Ã'€. Ã' Ã ·. ÐÅ".: Ð’Ã'‹Ã' Ã'ˆ. Ã'ˆÐ º., 1986. — 295 Ã' ., Ð ¸Ã ». — Ð Ã ° Ð °Ã ½Ã ³Ã ». Ã' Ã ·. Internet sources http://ru.scribd.com/doc/33264944/English-Lexicology http://en.wikipedia.org/wiki/Archaism http://dictionary.reference.com/help/faq/language/d25.html http://window.edu.ru/library/pdf2txt/731/67731/41095/page6 http://matadornetwork.com/abroad/20-obsolete-english-words-that-should-make-a-comeback/2/

Project on Budgetary Control Essay

1. A budget is concerned for a definite future period. 2. A budget is a written document. 3. A budget is a detailed plan of all the economic activities of a business. 4. All the departments of a business unit co-operate for the preparation of a business budget. 5. Budget is a mean to achieve business and it is not an end in itself. 6. Budget needs to be updated, corrected and controlled every time when circumstances changes. Therefore it is a continuous process. 7. Budget helps in planning, coordination and control. 8. Different types of budgets are prepared by industries according to business requirements. 9. A budget acts a business barometer. 10. Budget is usually prepared in the light of Past Experience. 11. Budget is a constant endeavor of the Management. 2 PREPARATION OF BUDGETS 1. Definition of objectives: A budget being a plan for the achievement of certain operational objectives, it is desirable that the same are defined precisely. The objectives should be written out; the areas of control demarcated; and items of revenue and expenditure to be covered by the budget stated. This will give a clear understanding of the plan and its scope to all those who must cooperate to make it a success. 2. Location of the key (or budget) factor: There is usually one factor (sometimes there may be more than one) which sets a limit to the total activity. For instance, in India today sometimes non-availability of power does not allow production to increase inspite of heavy demand. Similarly, lack of demand may limit production. Such a factor is known as key factor. For proper budgeting, it must be located and estimated properly. 3. Appointment of controller: Formulation of a budget usually requires whole time services of a senior executive; he must be assisted in this work by a Budget Committee, consisting of all the heads of department along with the Managing Director as the Chairman. The Controller is responsible for co-ordinating and development of budget programmes and preparing the manual of instruction, known as Budget manual. The Budget manual is a schedule, document or booklet which shows, in written forms the budgeting organisation and procedures. The manual should be well written and indexed so that a copy thereof may be given to each departmental head for guidance. 3 4. Budget period: The period covered by a budget is known as budget period. There is no general rule governing the selection of the budget period. In practice the Budget Committee determines the length of the budget period suitable for the business. Normally, a calendar year or a period coterminous with the financial year is adopted. The budget period is then sub-divided into shorter periods—it may be months or quarters or such periods as coincide with period of trading activity. 5. Standard of activity or output: For preparing budgets for the future, past statistics cannot be completely relied upon, for the past usually represents a combination of good and bad factors. Therefore, though results of the past should be studied but these should only be applied when there is a likelihood of similar conditions repeating in the future. Also, while setting the targets for the future, it must be remembered that in a progressive business, the achievement of a year must exceed those of earlier years. Therefore what was good in the past is only fair for the current year. In budgeting, fixing the budget of sales and of capital expenditure are most important since these budgets determine the extent of development activity. For budgeting sales, one must consider the trend of economic activity of the country, reactions of salesmen, customers and employees, effect of price changes on sales, the provision for advertisement campaign plan capacity etc. 4 Meaning of Budgetary Control: The Chartered Institute of Management Accountants of England and Wales has defined the terms ‘budgetary control’ as â€Å"Budgetary control is the establishment of budgets relating to the responsibilities of executives of a policy and the continuous comparison of the actual with the budgeted results, either to secure by individual action the objective of the policy or to provide a basis for its revision.† It is the system of management control and accounting in which all the operations are forecasted and planned in advance to the extent possible and the actual results compared with the forecasted and planned ones. Budgetary Control Involves: 1. Establishment of budgets 2. Continuous comparison of actuals with budgets for achievement of targets 3. Revision of budgets after considering changed circumstances 4. Placing the responsibility for failure to achieve the budget targets. The salient features of Budgetary Control System are as follows: 1. Determining the objectives to be achieved, over the budget period, and the policy or policies that might be adopted for the achievement of these ends. 2. Determining the variety of activities that should be undertaken for the achievement of the objectives. 3. Drawing up a plan or a scheme of operation in respect of each class of activity, in physical as well as monetary terms for the full budget period and its parts. 5 4. Laying out a system of comparison of actual performance by each person, section or department with the relevant budget and determination of causes for the discrepancies, if any. 5. Ensuring that corrective action will be taken where the plan is not being achieved and, if that be not possible, for the revision of the plan. In brief, it is a system to assist management in the allocation of responsibility and authority, to provide it with aid for making, estimating and planning for the future and to facilitate the analysis of the variation between estimated and actual performance. In order that budgetary control may function effectively, it is necessary that the concern should develop proper basis of measurement or standards with which to evaluate the efficiency of operations, i.e., it should have in operation a system of standard costing. Besides this, the organization of the concern should be so integrated that all lines of authority and responsibility are laid, allocated and defin ed. This is essential since the system of budgetary control postulates separation of functions and division of responsibilities and thus requires that the organization shall be planned in such a manner that everyone, from the Managing Director down to the Shop Foreman, will have his duties properly defined. Objectives of Budgetary Control System: 1. Portraying with precision the overall aims of the business and determining targets of performance for each section or department of the business. 2. Laying down the responsibilities of each of the executives and other personnel so that everyone knows what is expected of him and how he will be judged. Budgetary control is 6 one of the few ways in which an objective assessment of executives or department is possible. 3. Providing a basis for the comparison of actual performance with the predetermined targets and investigation of deviation, if any, of actual performance and expenses from the budgeted figures. This naturally helps in adopting corrective measures. 4. Ensuring the best use of all available resources to maximize profit or production, subject to the limiting factors. Since budgets cannot be properly drawn up without considering all aspects usually there is good co-ordination when a system of budgetary control operates. 5. Co-coordinating the various activities of the business, and centralizing control and yet enabling management to decentralize responsibility and delegate authority in the overall interest of the business. 6. Engendering a spirit of careful forethought, assessment of what is possible and an attempt at it. It leads to dynamism without recklessness. Of course, much depends on the objectives of the firm and the vigour of its management. 7. Providing a basis for revision of current and future policies. 8. Drawing up long range plans with a fair measure of accuracy. 9. Providing a yardstick against which actual results can be compared. Working of a budgetary control system: The responsibility for successfully introducing and implementing a Budgetary Control System rests with the Budget Committee acting through the Budget Officer. The Budget Committee would be composed of all functional heads and a member from the Board to 7 preside over and guide the deliberations. The main responsibilities of the Budget Officer are: 1. To assist in the preparation of the various budgets by coordinating the work of the accounts department which is normally responsible to compile the budgets—with the relevant functional departments like Sales, Production, Plant maintenance etc.; 2. To forward the budget to the individuals who are responsible to adhere to them, and to guide them in overcoming any practical difficulties in its working; 3. To prepare the periodical budget reports for circulation to the individuals concerned; 4. To follow-up action to be taken on the budget reports; 5. To prepare an overall budget working report for discussion at the Budget Committee meetings and to ensure follow-up on the lines of action suggested by the Committee; 6. To prepare periodical reports for the Board meeting. Comparing the budgeted Profit and Loss Account and the Balance Sheet with the actual results attained. It is necessary that every budget should be thoroughly discussed with the functional head before it is finalized. It is the duty of the Budget Officer to see that the periodical budget reports are supplied to the recipients at frequent intervals as far as possible. The efficiency of the Budget Officer, and through him of the Budget Committee, will be judged more by the smooth working of the system and the agreement between the actual figures and the budgeted figures. Budgets are primarily an incentive and a challenge for better performance; it is up to the 8 Budget Officer to see that attention of the different functional heads is drawn to it to face the challenge in a successful manner. Advantages of Budgetary Control System: 1. The use of budgetary control system enables the management of a business concern to conduct its business activities in the efficient manner. 2. It is a powerful instrument used by business houses for the control of their expenditure. It in fact provides a yardstick for measuring and evaluating the performance of individuals and their departments. 3. It reveals the deviations to management, from the budgeted figures after making a comparison with actual figures. 4. Effective utilization of various resources like—men, material, machinery and money is made possible, as the production is planned after taking them into account. 5. It helps in the review of current trends and framing of future policies. 6. It creates suitable conditions for the implementation of standard costing system in a business organization. 7. It inculcates the feeling of cost consciousness among workers. 8. It helps the principal of management by exception to apply. 9. Management which has developed a well ordered budget plans and which operate accordingly, receive greater favour from credit agencies. 9 Limitations of Budgetary Control System: 1. Based on Estimates: Budgets may or may not be true, as they are based on estimates. 2. Time factor: Budgets cannot be executed automatically. Accuracy in budgeting comes through experience. Management must not expect too much during the development period. 3. Cooperation Required: Staff co-operation is usually not available during budgetary control exercise. The success of the budgetary control depends upon willing co-operation and teamwork, 4. Expensive: Its implementation is quite expensive. No budgetary programme can be successful unless adequate arrangements are made for supervision and administration. 5. Not a substitute for management: Budget is only a managerial tool. It cannot substitute management. 6. Rigid document: Budgets are considered as rigid document. But in reality, firm’s affairs continuously change under inflationary pressure and changing government policies. 10 ZERO BASE BUDGETS The technique of zero base budgeting suggests that an organisation should not only make decisions about the proposed new programmes, but should also review the appropriateness of the existing programmes from time to time. Such a review should particularly be done of such responsibility centres where there is relatively high proportion of discretionary costs. Costs of this type depend on the discretion or policies of the responsibility centre or top managers. These costs have no direct relation to volume of activity. Hence, management discretion typically determines the amount budgeted. Some examples are: expenditure on research and development, personnel administration, legal advisory services. Zero base budgeting, as the term suggests, examines or reviews a programme or function or responsibility from ‘scratch’. The reviewer proceeds on the assumption that nothing is to be allowed. The manager proposing the activity has, therefore, to justify that the activity is essential and the various amounts asked for are reasonable taking into account the outputs or results or volume of activity envisaged. No activity or expense is allowed simply because it was being allowed or done in the past. Thus according to this technique each programme, whether new or existing, must be justified in its entirety each time a new budget is formulated. It involves: 1. Dealing with particularly all elements of mangers’ budget requests 2. Critical examination of ongoing activities along with the newly proposed activities 3. Providing each manger a range of choice in setting priorities in respect of different activities and in allocating resources. 11 Process of Zero Base Budgeting: The following steps are involved in Zero base budgeting: Determining the objectives of budgeting: The objective may be ‘to effect cost reduction in staff overheads or it may be to drop, after careful analysis, projects which do not fit into achievement of the organizations objectives etc. Deciding on scope of application: The extent to which zero base budgeting is to be introduced has to be decided, i.e. whether it will be introduced in all areas of the organisation’s activities or only in a few selected areas on trial basis. Developing decision units Decision units for which cost-benefit analysis is proposed have to be developed so as to arrive at decisions whether they should be allowed to continue or to be dropped. Each decision unit, as far as possible should be independent of other units so that it can be dropped if the cost analysis proves to be unfavourable for it. Developing decision packages : A decision package for each unit shou ld be developed. While developing a decision package, answers to the following questions would be desirable: †¢ Is it necessary to perform a particular activity at all? If the answer is in the negative, there is no need to proceed further. †¢ How much has been the actual cost of the activity and what has been the actual benefit both in tangible as well as intangible forms? †¢ What should be the estimated cost of the level of activity and the estimated benefit from 12 such activity? †¢ Should the activity be performed in the way in which it is being performed, and what should be the cost? †¢ If the project or activity is dropped, can the unit be replaced by an outside agency? After completing decision packages for each unit, the units are ranked according to the findings of cost benefit analysis. Essential projects are identified and given the highest ranks. The last stage is that of implementing the decision taken in the light of the study made. It involves the selection and acceptance of those projects which have a positive cost-benefit analysis or which are capable of meeting the objectives of the organization. The above analysis shows that zero base budgeting is in a way an extension of the method of cost benefit analysis to the area of the corporate budgeting. Advantages of Zero Base Budgeting: †¢ It provides the organization with systematic way to evaluate different operations and programmes undertaken. It enables management t o allocate resources according to priority of the programmes. †¢ It ensures that each and every programme undertaken by managers is really essential for the organization, and is being performed in the best possible way. †¢ It enables the management to approve departmental budgets on the basis of cost-benefit analysis. No arbitrary cuts or increase in budget estimates are made. †¢ It links budgets with the corporate objectives. Nothing will be allowed simply because it was being done in the past. An activity may be shelved if it does not help in achieving the goals of the enterprises. 13 †¢ It helps in identifying areas of wasteful expenditure and, if desired, it can also be used for suggesting alternative courses of action. †¢ It facilitates the introduction and implementation of the system of `management by objectives’. Thus it can be used not only for fulfillment of the objectives of traditional budgeting, but also for a variety of other purposes. It is contended that zero base budgeting is time consuming. Of course, it is true, but it happens only in the initial stages when decision units have to be identified and decision packages have to be developed or completed. Once this is done, and the methodology is clear, zero base budgeting is likely to take less time than the traditional budgeting. In any case, till such time the organization is properly acclimatized to the technique of zero base budgeting, it may be done in a way that all responsibility centre’s are covered at least once in three or four years. Zero base budgeting as a concept has become quite popular these days. The technique was first used by the U.S. Department of Agriculture in 1962. Texas Instruments, a multinational company, pioneered its use in the private sector. Today, a number of major companies such as Zerox, BASF, International Harvester and Easter Airlines in the United State are using the system. Some departments of the Government of India have recently introduced zero base budgeting with a view to making the system of budgetary control more effective. 14 PERFORMANCE BUDGETS Performance budgeting (or programme budgeting) has been designed to correct the shortcomings of traditional budgeting by emphasizing management’s considerations/ approaches. Both the financial and physical aspects are incorporated into the budget. A performance budget presents the operations of an organisation in terms of functions, programmes, activities, and projects. In performance budgeting, precise detainment of job to be performed or services to be rendered is done. Secondly, the budget is prepared in terms of functional categories and their sub-division into programmes, activities, and projects. Thirdly, the budget becomes a comprehensive document. Since the financial and physical results are interwoven, it facilitates management control. The Main objectives of Performance Budgeting are: (i) to coordinate the physical and financial aspects; (ii) to improve the budget formulation, review and decision-making at all levels of management (iii) to facilit ate better appreciation and review by controlling authorities (legislature, Board of Trustees or Governors, etc) as the presentation is more purposeful and intelligible; (iv) to make more effective performance audit possible; and (v) to measure progress towards long-term objectives which are envisaged in a development plan. Performance budgeting involves evaluation of the performance of the organisation in the context of both specific, as well as, overall objectives of the organisation. It presupposes a crystal clear perception of organisational objectives in general, and short-term business objectives as stipulated in the budget, in particular by each employee of the organisation, irrespective of his level. It thus, provides a definite direction to each employee and also a control mechanism to higher management. 15 Performance budgeting requires preparation of periodic performance reports. Such reports compare budget and actual data, and show variances. Their preparation is greatly facilitated if the authority and responsibility for the incurrence of each cost element is clearly defined within the firm’s organisational structure. In addition, the accounting system should be sufficiently detailed and coordinated to provide necessary data for reports designed for the particular use of the individuals or cost centres having primary responsibility for specific cost. The responsibility for preparing the performance budget of each department lies on the respective Department Head. Each Department Head will be supplied with a copy of the section of the master budget appropriate to his sphere. For example, the chief buyer will be supplied with the copy of the materials purchase budget so that he may arrange for purchase of necessary materials. Periodic reports from various sections of a departme nt will be received by the departmental head that will submit a summary report about his department to the budget committee. The report may be daily, weekly or monthly, depending upon the size of business and the budget period. These reports will be in the form of comparison of budgeted and actual figures, both periodic and cumulative. The purpose of preparing these reports is to promptly inform about the deviations in actual and budgeted activity to the person who has the necessary authority and responsibility to take necessary action to correct the deviations from the budget. 16 FUNCTIONAL BUDGET A functional budget is one which is related to function of the business as for example, production budget relating to the manufacturing function. Functional budgets are prepared for each function and they are subsidiary to the master budget of the business. The various types of functional budgets to be prepared will vary according to the size and nature of the business. The various commonly used functional budgets are: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Sales budget Production budget Plant utilisation budget Direct-material usage budget Direct-material purchase budget Direct-labour (personnel) budget Factory overhead budget Production cost budget Ending-inventory budget Cost-of-goods-sold budget Selling and distribution cost budget Administration expenses budget Research and development cost budget (xiv) Capital expenditure budget Cash budget 17 Illustration: Sales Budget: Sales forecast is the commencement of budgeting and hence sales budget assumes primary importance. The quantity which can be sold may be the principal budget factor in many business undertakings. In any case in order to chalk out a realistic budget programme, there must be an accurate sales forecast. The sales budget indicates for each product: 1. The quantity of estimated sales and 2. The expected unit selling price. These data are often reported by regions or by sales representatives. In estimating the quantity of sales for each product, past sales volumes are often used as a starting point. These amounts are revised for factors that are expected to affect future sales, such as the factors listed below. 1. Backlog of unfilled sales orders 2. Planned advertising and promotion 3. Expected industry and general economic conditions 4. Productive capacity 5. Projected pricing 6. Findings of market research studies 7. Relative product profitability. 8. Competition. 18 Once an estimate of the sales volume is obtained, the expected sales revenue can be determined by multiplying the volume by the expected unit sales price, the sales budget represents the total sales in physical quantities and values for a future budget period. Sales managers are constantly faced with problem like anticipation of customer requirements, new product needs, competitor strategies and various changes in distribution methods or promotional techniques. The purposes of sales budget is not to attempt to estimate or guess what the actual sales will be, but rather to develop a plan with clearly defined objectives towards which the operational effort is directed in order to attain or exceed the objective. Hence, sales budget is not merely a sales forecast. A budget is a planning and control document which shows what the management intends to accomplish. Thus, the sales budget is active rather than passive. A sales forecast, however, is a projection or estimate of the available customer demand. A forecast reflects the environmental or competitive situation facing the company whereas the sales budget shows how the management intends to react to this environmental and competitive situation. A good budget hinges on aggressive management control rather than on passive acceptance of what the market appears to offer. If the company fails to make this distinction, the budget will remain more a figure-work exercise than a working tool of dynamic management cont rol. 19 The sales budget may be prepared under the following classification or combination of classifications: 1. Products or groups of products. 2. Areas, towns, salesmen and agents. 3. Types of customers as for example: (i) Government, (ii) Export, (iii) Home sales, (iv) Retail depots. 4. Period—months, weeks, etc Example of Sales Budget: XYZ Ltd. Sales Budget for the Year Ended 31 March XXXX Particulars Units Selling Price (P.U) Total Sales Value (Rs.) Product A Product B Total 5000 10000 75 80 375000 800000 1175000 20 LEADING TO THE PREPARATION OF THE MASTER BUDGET When all the necessary functional budgets have been prepared, the budget officer will prepare the master budget which may consist of budgeted profit and loss account and budgeted balance sheet. These are in fact the budget summaries. When the master budget is approved by the board of directors, it represents a standard for the achievement of which all the departments will work. On the basis of the various budgets (schedules) prepared earlier in this study, we prepare below budgeted income statement and budgeted balance sheet. Illustration: Floatglass Manufacturing Company requires you to present the Master budget for the 31 March 2012 from the following information: Sales: Toughened Glass Bent Glass Direct Material Cost Direct Wages Factory Overheads: Indirect Labour Works Manager Foreman Rs. 500 per month Rs. 400 per month 2.5% on Sales Rs. 600000 Rs. 200000 60% of Sales 20 workers @ Rs. 150 per month 21 Stores and Spares Depreciation on Machinery Repairs and Maintenance Other Sundries Administration, selling and Distribution Expenses Rs. 12600 Rs. 3000 Rs. 8000 10% on Direct Wages Rs. 36000 per year Solution: Master Budget for the Year Ending 31 March 2012 Particulars Amount (Rs.) Sales: Toughened Glass Bent Glass Total Sales Less: Cost of Production: Direct Material Direct Wages Prime Cost (A) Fixed Factory Overhead: 480000 36000 516000 600000 200000 800000 Amount (Rs.) 22 Works Manager’s Salary Foreman’s Salary Depreciation Light and Power Total Fixed Factory Overhead (B) Variable Factory Overhead: Stores and Spares Repairs and Maintenance Sundry Expenses Total Variable Factory Overhead (C) Works Cost (A+B+C) Gross Profit (Sales- Works Cost) Less: Administration, Selling and Distribution Expenses Net Profit 6000 4800 12600 3000 26400 20000 8000 3600 31600 574000 226000 36000 190000 23 CAPITAL EXPENDITURE BUDGET: The capital expenditure budget represents the planned outlay on fixed assets like land, building, plant and machinery, etc. during the budget period. This budget is subject to strict management control because it entails large amount of expenditure. The budget is prepared to cover a long period of years and it projects the capital costs over the period in which the expenditure is to be incurred and the expected earnings. The preparation of this budget is based on the following considerations: 1. Overhead on production facilities of certain departments as indicated by the plant utilization budget. 2. Future development plans to increase output by expansion of plant facilities. 3. Replacement requests from the concerned departments 4. Factors like sales potential to absorb the increased output, possibility of price reductions, increased costs of advertising and sales promotion to absorb increased output, etc. Merits/Advantages: 1. It outlines the capital development programme and estimated capital expenditure during the budget per iod. 2. It enables the company to establish a system of priorities. When there is a shortage of funds, capital rationing becomes necessary. 3. It serves as a tool for controlling expenditure. 4. It provides the amount of expenditure to be incorporated in the future budget 24 summaries for calculation of estimated return on capital employed. 5. This enables the cash budget to be completed. With other cash commitments capital expenditure commitment should also be considered for the completion of the budget. 6. It facilitates cost reduction programme, particularly when modernization and renovation is covered by this budget. 25 FIXED AND FLEXIBLE BUDGETS Fixed Budget: According to Chartered Institute of Management Accountants of England, â€Å"a fixed budget is a budget designed to remain unchanged irrespective of the level of activity actually attained†. A fixed budget shows the expected results of a responsibility center for only one activity level. Once the budget has been determined, it is not changed, even if the activity changes. Fixed budgeting is used by many service companies and for some administrative functions of manufacturing companies, such as purchasing, engineering, and accounting. Fixed Budget is used as an effective tool of cost control. In case, the level of activity attained is different from the level of activity for budgeting purposes, the fixed budget becomes ineffective. Such a budget is quite suitable for fixed expenses. It is also known as a static budget. Essential conditions: 1. When the nature of business is not seasonal. 2. There is no impact of external factors on the business activities 3. The demand of the product is certain and stable. 4. Supply orders are issued regularly. 5. The market of the product should be domestic rather than foreign. 6. There is no need of special labour or material in the production of the products. 7. Supply of production inputs is regular. 8. There is a trend of price stability. Generally, all above conditions are not found in practice. Hence fixed budget is not important 26 in business concerns. Merits/advantages: 1. Very simple to understand 2. Less time consuming Demerits/Disadvantages: 1. It is misleading. A poor performance may remain undetected and a good performance may go unrealized. 2. It is not suitable for long period. 3. It is also found unsuitable particularly when the business conditions are changing constantly. 4. Accurate estimates are not possible. Flexible Budget According to Chartered Institute of Management Accountants of England,†a flexible budget is defined as a budget which, by recognizing the difference between fixed, semi-variable and variable costs is designed to change in relation to the level of activity attained.† Unlike static (fixed) budgets, flexible budgets show the expected results of a responsibility center for several activity levels. You can think of a flexible budget as a series of static budgets for different levels of activity. Such budgets are especially useful in estimating and controlling factory cos ts and operating expenses. It is more realistic and practicable because it gives due consideration 27 to cost behaviour at different levels of activity. While preparing a flexible budget the expenses are classified into three categories viz. 1. Fixed, 2. Variable, and 3. Semi-variable. Semi-variable expenses are further segregated into fixed and variable expenses. Flexible budgeting may be resorted to under following situations: 1. In the case of new business venture due to its typical nature it may be difficult to forecast the demand of a product accurately. 2. Where the business is dependent upon the mercy of nature e.g., a person dealing in wool trade may have enough market if temperature goes below the freezing point. 3. In the case of labour intensive industry where the production of the concern is dependent upon the availability of labour. Merits/ Advantages: 1. With the help of flexible budget, the sales, costs and profit may be calculated easily by the business at various levels of production capacity. 2. In flexible budget, adjustment is very simple according to change in business conditions. 3. It also helps in determination of production level as it shows budgeted costs with classification at various levels of activity along with sales. Hence the management can easily select the level of production which shows the profit predetermined by the owners of the bu siness. 4. It also shows the quantity of product to be produced to earn determined profit. 28 Demerits/Disadvantages: 1. The formulation of flexible budget is possible only when there is proper accounting system maintained, perfect knowledge about the factors of production and various business circumstances is available. 2. Flexible Budget also requires the system of standard costing in business. 3. It is very expensive and labour oriented. Need for flexible budget: 1. Seasonal fluctuations in sales and/or production, for example in soft drinks industry; 2. A company which keeps on introducing new products or makes changes in the design of its products frequently; 3. Industries engaged in make-to-order business like ship building; 4. An industry which is influenced by changes in fashion; and 5. General changes in sales. 29 Illustration: A factory which expects to operate 7,000 hours, i.e., at 70% level of activity, furnishes details of expenses as under: Particulars Variable Expenses Amount (Rs.) 1260 Semi- Variable Expenses 1200 Fixed Expenses 1800 The semi-variable expenses go up by 10% between 85% and 95% activity and by 20% above 95% activity. Construct a flexible budget for 80, 90 and 100 per cent activities. Solution: Particulars Budgeted Hours Variable Expenses Semi-Variable Expenses Fixed Expenses Total Expenses Recovery Rate Per Hour 70% 7000 1260 1200 1800 4260 0.61 80% 8000 1440 1200 1800 4440 0.55 90% 9000 1620 1320 1800 4740 0.53 100% 10000 1800 1440 1800 5040 0.50 30 Difference between Fixed and Flexible Budget: Fixed Budget Flexible Budget It does not change with actual volume of It can be recasted on the basis of activity activity achieved. Thus it is known as rigid level to be achieved. Thus it is not rigid. or inflexible budget. It operates on one level of activity and under It consists of various budgets for one set of conditions. It assumes that there different levels of activity. will be no change in the prevailing conditions, which is unrealistic. Here as all costs like – fixed, variable and Here analysis of variance provides useful semi-variable are related to only one level information as each cost is analyzed of activity so variance analysis does give useful information. If the budgeted and actual activity levels differ Flexible budgeting at different levels of significantly, then the aspects like cost activity facilitates the ascertainment of ascertainment and price fixation do not give a cost, fixation of selling price and tendering correct picture. of quotations. a meaningful basis of not according to its behaviour. Comparison of actual performance with It provides budgeted targets will be meaningless comparison of the actual performance with specially when there is a difference the budgeted targets. between the two activity levels. 31 BIBLIOGRAPHY 1 ICAI Module on Cost Accounting 2 Newsletters and opinions published by ICAI 3 http://en.wikipedia.org/wiki/Budget 4 www.icai.org