12esol. budgetary control exercise (solution)

英文原文Budget management1 IntroductionThe NHS reforms have had far reaching implications for clinicians of all grades and specialties. Among other changes, it has been deliberate government policy that senior clinicians should have more direct management and budgetary responsibility within their own clinical areas. Trust hospitals have developed a directorate based management structure and devolved budgets to clinical directors. A&E departments have either become directorates in their own right or associate directorates within larger directorates. A&E consultants who take on clinical directorship responsibilities will have more direct control of spending within their own department. At first this may seem intimidating, but the advantages of having control outweigh the disadvantages of more administrative activity.This article aims to give some guidelines to help make the task less daunting, as well as some tips based on personal experience. I do not intend to cover fund raising activity or the organization of postgraduate education and its funding. Brief mention will be made of "business planning" at the end. And we have outlined what management budgeting is and how it differs from traditional budgetary control systems in health authorities; considered what it aims to achieve; and discussed the participation of clinicians in the management budgeting process and its likely impact on their methods of working.2 What is a budget?Traditional budgetary control systems are based primarily on a structure of what are normally termed functional or departmental budgets. In this structure budgets are held by those people responsible for providing a service.There is normally no participation of clinical staff in this budgetary controlstructure other than the possibility that the budget holders for pathology and radiology might be the consultants in charge. This seems strange given the considerable influence that clinicians have over the use of hospital resources.In any system of budgetary control a key principle is that individual budget holders should be held responsible only for those items of expenditure over which they can exert control. In health authorities this principle does not always apply. An extreme example of this concerns the pharmacy budget, where the pharmacist is often held responsible for drugs expenditure even though he has no direct control over the level of spending.Although a budget is a sum of money given to you to run your service (including salaries and wages of all personnel) it is important to realize it is essentially a paper exercise similar to running your own bank account and receiving a bank statement. You will never actually see the money and the nitty-gritty of manipulating the account is done by your management colleagues and the finance department. Your role as clinical director is to keep a watching brief on it and to make executive decisions as to how it isspent. There are three broad categories of budget:(1) Steady state-you are allocated the same amount of money each year with an allowance for inflation. Although it offers predictability for future planning it is inflexible and does not allow for surges in activity or unfunded government and trust lead initiatives. The majority of A&E departments receive their funding in this way.(2) Activity based-the amount of money provided reflects the work done. It is accurate, flexible, and is the basis of much purchaser/provider contract activity. It is generally not available until the work has been completed and will vary from year to year.(3) Lump sum-the government, region, or trust releases a lump sum of money for a specific purpose (for example, to start triage or audit or to complete a waiting list initiative).This is unpredictable, often comes at short notice, and can rarely be used for long term planning.Although the majority of A&E budgeting falls into the first category, lumpsum money is available from time to time. An average department seeing 50 000 patients a year may hadean annual budget of approximately one million pounds. When taking on a budget ask these questions:(1) How big is it? Who actually controls it?(2) Do you really have control of it or is it only theoretical, How often will you receive a statement? Who do you speak to make changes with the budget? With whom and how do you negotiate within your institution?(3) Ask to be taken through a budget statement and have a clear explanation of all terms, etc. It is normally delivered monthly and although it may look complicated it is easy to master and is really little different from your own bank statement.(4) Go through it carefully as mistakes are an occasional occurrence (although they can be rectified retrospective through the finance department).(5) The financial year runs from April to March. The theoretical aim is to make the books balance by the end of the financial year and not from month to month. Short term overspends or under spends are not important.(6) A positive (+) sign means an overspend and a negative (-)sign means an under spend.(7) Concentrate on the big numbers; do not worry too much about little numbers although they do need to reanalyzed at some stage as savings can probably be made without affecting the quality of service.(8) Devolve control of the nursing budget to your clinical nurse manager but be prepared to involve yourself in nursing activities (for example, the development of nurse partitioning).(9) Be prepared to negotiate with other directorates about certain items, similar issues arise with funding for anesthetic agents and blood products.(10) Use creative accountancy. This is legitimate and will even receive the support of your financial colleagues.A key principle of management budgets is that all users of services should be informed of their costs. This is achieved by means of recharges made between those budget holders who supply services and those who use them. Consideringdomestic and cleaning services again, this would entail a recharge between that department's budget and those of other departments and facilities in the hospital. Cleaning costs would then appear on budget reports.In the case of, say, pathology services, consultant budget holders would be charged according to the number and type of tests that they request. Such recharges would be based on an agreed price list for tests rather than the actual cost of performing each individual one. This would have the effect of protecting the consultants who use pathology services from bearing the costs of any inefficiencies in the laboratories.It is beyond the scope of this article to describe in detail the revised procedures for setting budgets that would apply in a system of management budgeting. Two features of importance should, however, be noted.The first is that all budget holders, including clinicians, would be invited to discuss possible changes in their budgets. Such discussions would consider options for service developments if additional resources became available and options for retrenchment should this become necessary as a consequence of reductions in resources. Also included would bean assessment of alternative ways of using existing resources to achieve greater efficiency. These reallocations might be made within a specific budget or might mean the movement of resources from one budget to another.Linked to these discussions would be several financial incentives intended to encourage good budgetary control. Typically, these would permit budget holders to retain a proportion of any planned underpinnings to use in improving the services that they provide.3 Who Needs Budgets?Modern companies reject centralization, inflexible planning, and command and control. So why do they cling to a process that reinforces those things? Budgeting, as most corporations practice it, should be abolished. That may sound like a radical proposition, but it would be merely the culmination of long-running efforts to transform organizations from centralized hierarchies into devolvednetworks that allow for nimble adjustments to market conditions. Most of the other building blocks are in place. Companies have invested huge sums in IT networks, process reengineering, and a range of management tools including EVA (Economic Value Added), balanced scorecards, and activity accounting. But they have been unable to establish a new order because the budget and the command and control culture that it supports remain predominant.In extreme cases, use of the budget to force performance improvements may lead to a breakdown in corporate ethics. People who worked at WorldCom, now bankrupt and under criminal investigation, said CEO Bernard Ebert’s rigid demands were an overwhelming fact of life there. “You would have a budget, and he would mandate that you had to be 2% under budget,” said a person who worked at WorldCom, according to an article in Financial Times last year. “Nothing else was acceptable.” WorldCom,Enron, Barings Bank, and other failed companies had tight budgetary control processes that funneled information only to those with a “need to know.”In short, the same companies that vow to stay close to the customer, so that they can respond quickly to precious intelligence about market shifts, cling tenaciously to budgeting--a process that disembowels the front line, discourages information sharing, and slows the response to market developments until it's too late.A number of companies have recognized the full extent of the damage done by budgeting. They have rejected the reliance on obsolete data and the protracted, self-interested wrangling over what the data indicate about the future. And they have rejected the foregone conclusions embedded in traditional budgets--conclusions that render pointless the interpretation and circulation of current market information, the stock-in-trade of the knowledge-based, networked company.4 Business planningThis is a new concept in the NHS but is well recognized in private industry. You will probably be asked to write on each year, a task which is not as tediousas it may sound. A good plan will help:(1) Priorities future activity(2) Predict financial needs(3) Develop departmental team spirit(4) Convince others of your “vision” and enlist their cooperation(5) Give support in times of change and uncertainty.METHOD:The following is a useful structure for developing your plan:(1) Identify all the activity of your department.(2) Do you wish to stop any activity?(3) Do you wish to continue any activity unchanged?(4) Do you wish to continue any activity with minor change?(5) Is there anything you wish to radically change?(6) Is there anything you wish to introduce which is considered radical or innovative?TIPS:(1) Involve your medical and nursing colleagues; many heads contribute many ideas(2) Use brainstorming(3) Don't forget to involve your clerical staff-they will seething from a very different angle and can contribute excellent ideas(4) Include everything in the first draft (it can be pruned later)(5) If you think an innovative idea is worth pursuing try not to be put off by caution keep pursuing it(6) The actual format of the plan should follow that usedwithin your trust.5 SummaryThe NHS as a whole is constrained to operate with finite resources. Furthermore,each individual district, as a consequence of the cash limit system, has a fixed sum of money available to it each year for the provision of services. These financial facts of life must be recognized by all those who use the serviceor work in it. From the point of view of the district they lead to two apparently contradictory obligations-namely, to provide the pattern of services that best meets the changing needs of the community as a whole; and to do so within a fixed financial allocation. The provision of services that meet the needs of the community requires constant appraisal of the way that resources are used. This may indicate that growth in a certain area of activity is required. Cash limits, however, imply that growth in one area can only be achieved either through contraction in another or by an overall improvement in efficiency. Management budgeting provides the means to examine and tackle these issues and thus can help to reconcile the conflicting demands that confront districts.Budgetary responsibility gives you more control. Take time to master the fine detail, ask questions of your management and finance colleagues about anything you do not understand (you will not lose face), and develop the skills of lateral thinking and creative accountancy. Even if your budget is repeatedly overspent do not take it personally, ensure that management are aware of it and have a goodnight's sleep. Do not worry about it.中文译文预算管理1．介绍国民保健制度的改革措施已经对所有职业和专业医生产生了深远的影响。

Mitigation options to reduce phosphorus losses from the agricultural sector and improve surface water quality:A reviewO.F.Schoumans a ,⁎,W.J.Chardon a ,M.E.Bechmann b ,C.Gascuel-Odoux c ,G.Hofman d ,B.Kronvang e ,G.H.Rubæk f ,B.Ulén g ,J.-M.Dorioz haAlterra Wageningen UR,P.O.Box 47,6700AA Wageningen,The Netherlands bNorwegian Inst Agr &Environm Res,N-1432As,Norway cINRA,UMR1069,Soil Agro and HydroSystem,65route de Saint-Brieuc,35042Rennes,France dDep.Soil Management,University of Ghent,Coupure 653,B-9000Gent,Belgium eAarhus University,Dept.of Bioscience,Vejlsovej 25,DK-8600Silkeborg,Denmark fAarhus University,Dept.of Agroecology,P.O.Box.50,DK-8830Tjele,Denmark gSwedish Univ Agr Sci,Div Water Qual Management,Dept Soil Sci,SE-75007Uppsala,Sweden hINRA,UMR CARRTEL Station d'hydrobiologie,BP 511,74203Thonon-Les-Bains,FranceH I G H L I G H T S •Various mitigation options to reduce phosphorus losses from agricultural land were described in terms of factsheets.•Global budget systems and agro-environmental recommendations systems are useful tools for setting up a more sustainable agricultural management practice.•At field scale different crop and soil management techniques are available to increase the P ef ficiency and reduce loss of P from the fields by erosion and runoff.•At catchment scale the landscape and the hydrological system determines the buffer capacity,transfer and delivery of nutrients to the surface water system and several options are available to reduce P losses.•Finally,with surface water management measures the impact of nutrient loads on surface water quality can be reduced.a b s t r a c ta r t i c l e i n f o Article history:Received 20September 2012Received in revised form 14August 2013Accepted 20August 2013Available online 20September 2013Editor:D.Barcelo Keywords:Diffuse pollution Water quality Phosphorus Nutrients MeasuresThe EU Water Framework Directive (WFD)obliges Member States to improve the quality of surface water and groundwater.The measures implemented to date have reduced the contribution of point sources of pollution,and hence diffuse pollution from agriculture has become more important.In many catchments the water quality remains poor.COST Action 869was an EU initiative to improve surface water quality that ran from 2006to 2011,in which 30countries participated.Its main aim was a scienti fic evaluation of the suitability and cost-effectiveness of options for reducing nutrient loss from rural areas to surface waters at catchment scale,including the feasibility of the options under different climatic and geographical conditions.This paper gives an overview of various categories of mitigation options in relation to phosphorus (P).The individual measures are described in terms of their mode of action,applicability,effectiveness,time frame,environmental side-effects (N cycling)and cost.In total,83measures were evaluated in COST Action 869.©2013Elsevier B.V.All rights reserved.1.IntroductionThe role of an excess of nutrients phosphorus (P)and nitrogen (N)in the eutrophication of surface water was recognised in the mid-20th century (Red field,1958;Vollenweider,1968).Among the negative environmental effects of eutrophication are reduced functioning and biodiversity of aquatic ecosystems and decline in surface water quality (Scheffer,1998;Smith et al.,1999).The Harmful Algal Blooms (HABs)associated with eutrophication produce toxic algal substances that kill fish (Carpenter et al.,1969;Jaworski,1981)and cause disease in ani-mals (Kotak et al.,1994;Main et al.,1977)and humans (Falconer,1989;Lawrence et al.,1994).Nutrient loads to waters must be reduced to control eutrophication.The relative concentrations of total N and P together with bioas-says have been used to estimate which of these nutrients is limiting the growth of algae in aquatic systems (Atkinson and Smith,1983;Hecky et al.,1993;Red field,1958;Smith,1983).For freshwater sys-tems the indicative N:P weight ratios are ≤4.5for N-limitation,4.5–6for intermediate conditions and ≥6for P-limitation;the equivalentScience of the Total Environment 468–469(2014)1255–1266⁎Corresponding author.Tel.:+31317486446;fax:+31317419000.E-mail address:oscar.schoumans@wur.nl (O.F.Schoumans).0048-9697/$–see front matter ©2013Elsevier B.V.All rights reserved./10.1016/j.scitotenv.2013.08.061Contents lists available at ScienceDirectScience of the Total Environmentj o u r n a l h o me p a g e :ww w.e l s e v i e r.c o m /l o c a t e /s c i t o t envvalues for marine systems are respectively,≤5,5–10and≥10(EC, 2002).In most freshwater systems P is the limiting factor and is the nutrient present in lowest amount in relation to phytoplankton re-quirements(Carpenter,2008;Herath,1997;Lee,1973).By contrast, in marine systems,N has often been identified as the growth-limiting nutrient,especially in summer(Anderson and Glibert, 2002;Ärtebjerg and Carstensen,2001).Thesefindings should be interpreted with caution,however,as the N:P ratio may not correctly indicate the limiting nutrient of the system because of the role played by the absolute concentration and other factors such as light and phys-ical conditions.Furthermore,the bio-availability of P can change over time due to redox processes,pH changes and enzymatically-mediated hydrolysis processes(Correll,1998;Ekholm,2008;Reynolds and Davies,2001).Since the mid-20th century,nutrient losses throughout Europe have been declining,partly as an epiphenomenon of processes such as indus-trial decline,but also because of targeted measures.Examples of the lat-ter are increasing the number of homes connected to sewerage, introducing denitrification of N and precipitation of P in sewage water treatment plants,purifying industrial wastewater from industries and banning phosphorus in detergents.In many countries,P losses from eas-ily identified and targeted point sources have been reduced.Yet despite these trends and the implementation of EU directives to reduce nutrient loads(EEC,1991a,1991b,1996,2000),the water quality in many rivers, lakes and estuaries remains poor,largely due to diffuse pollution from land entering surface water systems(EEA,2010).Nutrient losses from agriculture mainly enter water systems as a re-sult of nutrients being transported by surplus runoff'as itflows over or under farmland.One of the most important pathways of P loss in hilly and mountain areas occurs when erosion detaches soil particles during overlandflow.Inflatter or less hilly areas,the main pathways of phos-phorus pollution to surface waters are leaching through the soil and ar-tificial drainage(Chapman et al.,2005;Chardon and Schoumans,2007; Grant et al.,1996;Heathwaite et al.,2005;Kronvang et al.,1997;Nelson et al.,2005;Ulén and Mattsson,2003).Organic or inorganic nutrient ions are transported by waterflow, either in solution,associated with particles,or incorporated in microor-ganisms.In general,the amount of P bound to soil particles is much higher than the amount of bound ammonium.However,when organic particles are transported in dissolved form they carry more N than P, since the C:N:P ratio of soil organic matter is about100:10:1 (Stevenson and Cole,1999;Tilsdale et al.,1990).The concentration of soluble inorganic P in runoff water depends highly on the amount of adsorbed P.There is a good relationship between the amount of soluble inorganic P in surface runoff water and the soil P status of the plough layer(Allen et al.,2006),and in most cases there is a P enrichment of thefine eroded material(Schiettecatte,2006).The magnitude of dissolved inorganic P losses by leaching seems to be strongly influenced by the phosphate saturation of the soil(Schoumans and Groenendijk, 2000;Van der Zee,1990).The amount and composition of the soluble organic nutrients depend on factors such as the soil organic matter con-tent,physical and chemical type of organic material,affinity of the nutri-ent to adsorb to the soil and soil pH(McDowell and Koopmans,2006; Wilson and Xenopoulos,2009).After manure or fertiliser applications, high nutrient concentrations can be found in runoff water(Allen and Mallarino,2008;Smith et al.,2007),soil solution(Chardon et al., 2007;Van Es et al.,2004)and tile drains(Schelde et al.,2006).These losses can generate high Pfluxes and concentrations(Hahn et al., 2012;Preedy et al.,2001).As significant P losses are known to occur via particles eroded from agricultural soils,soil erosion from arable land and grassland should be reduced.Since soil and crop management in the form of tillage strat-egies,application of soil conditioners,crop rotation,crop management and catch or cover crops directly impact on soil erosion,it is possible to reduce P losses by adapting these management strategies for this pur-pose in erosion-prone areas on arable land.On grassland,avoiding poaching by intensive grazing,and soil compaction by traffic are possi-bilities to reduce erosion(Newell Price et al.,2011).Clayey and silty soils are frequently important sources of loss of soil particles and at-tached P through erosion.Such soil types furthermore often demon-strate rapid waterflow(preferentialflow)via preferred pathways through a fraction of the soil pores(Jarvis,2007),which enhances leaching of P through the soil profile and transport via tile drains.Soil and crop management strategies may also be adapted with the purpose of reducing this type of leaching loss.A large proportion of arable land in north and northwest Europe has tile drainage:30%in UK,40%in Denmark(Brown and Van Beinum, 2009),and over90%in the clayey/silty soil areas of Sweden and Finland(De la Cueva,2006).The tile drainage systems channel water di-rectly from farmland to streams and further to the sea.Reducing P trans-port from such drained agriculturalfields will therefore effectively reduce the P transport in streams and the load on lakes and seas.Addi-tionally,improvement of the actual drainage system may offer a possi-bility for reducing P losses under certain conditions.The Water Framework Directive(EEC,2000)obliges catchment management authorities of the EC Member States to improve the eco-logical status of surface waters by2016or at latest by2027.When striv-ing to meet the Directive's targets,the focus will be on reducing nutrient losses from agriculture,because this is becoming the main source of pol-lution.There is thus a need to have an overview of the options for reduc-ing nutrient losses from the agricultural sector and empirically established effectiveness under different circumstances(Cherry et al., 2008;Withers and Haygarth,2007).Focusing on P,here we give such an overview of mitigation practices that have been tested to varying de-grees.Though the overview was conducted for Europe,it has relevance to regions elsewhere in the world where loss of P from farmland is an actual or potential problem.2.MethodsFrom2006to2011the European Commission funded COST Action 869in which30countries participated(Chardon et al.,2012).One of the main objectives was to undertake a scientific evaluation of the suit-ability and cost-effectiveness of different options for reducing nutrient loss to surface waters at river basin scale.This included reporting their limitations in terms of applicability under different climatic,ecological and geographical conditions.Based on information from literature and an inventory amongst participating countries,83measures were distin-guished and grouped into eight categories:(a)nutrient management;(b)crop management;(c)livestock management;(d)soil manage-ment;(e)water management within agricultural land;(f)land use change;(g)landscape management and(h)surface water manage-ment.Each measure was described in a factsheet with the following sections:•Description,including whether the mitigation effect targets P(or N).•Rationale,mechanism of action:describes the mechanism to retain P (and N).•Relevance,applicability&potential for targeting:describes under which conditions the option can be applied.•Effectiveness,including uncertainty:estimates how effective the option can be,under which conditions it will be most effective and under which conditions it is least effective.•Time frame:indicates if the option is assumed to be effective in the short,medium or long term.•Environmental side-effects/pollution swapping:indicates unwanted ef-fects in other environmental compartments.•Administrative handling,control:describes the ease of applying and controlling the application of an option.•Costs:since actual costs can vary greatly between and even within countries,only investment and maintenance costs are defined.1256O.F.Schoumans et al./Science of the Total Environment468–469(2014)1255–1266•References:the references given are preferably easily accessible, e.g.via a url.All83mitigation measures are described individually on the website http://www.cost869.alterra.nl/Fs/List_of_options.htm.The complete ref-erences,links and numbering of all factsheets are given in the Supple-mentary Material accompanying this paper.Many factsheets include information from other evaluation studies.Important sources of informa-tion included are(Cuttle et al.,2007;Newell Price et al.,2011),from the UK,(Schou et al.,2007)from Denmark and the SERA-17group in the USA(SERA-17;/SERA_17_Publications. htm).In order to structure the different types of mitigation options for re-ducing nutrient losses,a framework was created of systems influencing the surface water quality.It comprises four systems(Fig.1).At the farm scale,strategic socio-economic decisions are made about the production system,and often nutrient management and livestock management strategies are developed in order to comply with European and national legislation.Farm-gate nutrient budgets based on the nutrient and livestock management give valuable information about the potential pressure of nutrients in the region(I.Farm system).The distribution of the available P sources over thefields in space and time depends on the crops and the soil P status,and gives more information about the soil balances and the potential risk of losses from thefields(II.Field sys-tem).The actual P losses from thefields to surface waters strongly de-pend on the landscape and hydrological system in a given region, because those systems determine the transfer and buffer capacity for nutrients(ndscape and hydrological system).The impact of nutri-ent loads on the ecology of the surface waters(IV.Ecological system)de-pends on the actual nutrient pressure compared to the critical nutrient pressure.Related to this framework of systems are the previously defined eight categories of measures relevant for reducing diffuse agricultural nutrient losses(see Fig.1).They represent a complementary set of op-tions to mitigate nutrientfluxes in space and time.Below,we discuss the most important measures for each system in more detail.Thefinal step in COST Action869was to develop a web-based procedure to assist national and regional governments,water managers,intermediaries, and innovative farmers to select the best measures under specific circumstances(http://www.cost869.alterra.nl/dbase).AcknowledgingFig.1.Schematic visualization of the four systems determining the nutrient losses to surface water,with the defined categories of mitigation measures.Table1Mitigation strategies for nutrient management at farm scale.Strategy Aim Measure FactsheetsEnvironmentally sound fertiliser application&nutrient handling Incorporate soil P into management strategy toachieve moderate soil P levelsMake use of available P in soils to avoid high risk hot-spots6,28,30,36,48,49 Reduce P content of the soil at high risk hot spots Don't apply manure and P fertiliser at high risk hot spots82,28,30,34,35,45,4 Increase P efficiency of crop uptake via appropriateplacement and time of applicationUse separated manure fractions and fertilisers with N:P-ratiosin line with the N:P ratio required by crop59,63Apply P near the roots instead of broadcast8Avoid applying manure and P fertilisers before heavyrainfall or prolonged rainfall81Phase nutrient fertilisation application over the year24,25Create sufficient storage capacity83Change P input Avoid high P content in fodder by increasingdigestible P and lowering total P content in feed Feed livestock refined fodder,taking account of their requirements given their growth phase1,80 Use feed with a lower content of phytate-P or add phytaseto feed to increase digestibility of phytate-P1,80Change P output Exploit the commercial value of the manuresurplus Make products for export or for arable farms.46a Produce secondary P resources for industries byincineration to P-ash46a Schoumans et al.(2010).1257 O.F.Schoumans et al./Science of the Total Environment468–469(2014)1255–1266the importance of an integrated approach in the design and implemen-tation of mitigation options for reducing nutrient losses,the COST Ac-tion initially addressed both P and N.In this paper,however,we focus on P and treat N mainly as an important“side-effect”.3.Results3.1.Farming system:nutrient and livestock managementLosses of N and P to surface waters are often a problem in regions with intensive agricultural and livestock production,due to the high availability of nutrients(Breeuwsma and Silva,1992;Sharpley et al., 1994).Table1gives different mitigation strategies and associated mea-sures related to farm management.The EU Nitrate Directive is a crucial EU Directive:it stipulates the permitted amount of manure applications in the Nitrate Action Programmes(max.170kg manure N ha−1unless so-called derogation permits apply more manure)and the period during which manure and fertiliser can be applied.The Directive also stipulates that total N appli-cation must be based on the balance between crop requirement and manure and fertiliser N supply,taking into account N release from the soil.No application standards for P are defined in the Directive,but it makes it obligatory for Member States to prevent surface water eutrophication.To derive agro-environmental nutrient management strategies, attention should be paid to the P balance at farm andfield scales,by tak-ing into account the amount of available soil P(FS28Hofman,2010).In many western European countries the amount of available soil P greatly exceeds the annual amount of P applied,because of the common agri-cultural practice of applying manure on the basis of crop N requirement. The average N:P ratio(w:w)of manures and composts often varies be-tween2and4,while the N:P uptake by major grain and hay crops varies between4.5and9(Eghball,1998;Maguire et al.,2006).Thus,too much manure P is applied on agricultural land,and the P surplus accumulates in the soil.Soil samples taken in many regions with a high livestock density reveal that most of the soils sampled do not require further addition of P to support plant growth(Breeuwsma and Silva,1992; Chardon and Schoumans,2007;Lemercier et al.,2008;Sharpley et al., 1994).At a high agronomic soil P status the P balance can be negative,and at low P status the P balance can be positive and this increases the soil P status to the level recommended to sustain optimal crop growth (Tunney et al.,1997).Therefore,on farms with manyfields with a high agronomic soil P status,the aim should be to have a negative P bal-ance at farm scale and to reduce the annual manure and/or fertiliser application on thefields with high soil P status,by taking account of soil nutrient status and crop response(FS06Dana,2010;FS30Hofman, 2010;FS48Newell Price,2010;FS63Turtola,2010).In so-called“critical source areas”(CSAs)(FS36Krogstad and Bechmann,2010;Heathwaite et al.,2000)–areas where sources and transport factors coincide with a high risk of P losses–integrated fertiliser and manure nutrient supply strategies are very important and can improve surface water quality by reducing the annual applica-tion rates of fertilisers(FS14Garnier,2010;FS35Krogstad and Bechmann,2010;FS45Newell Price,2010;FS49Newell Price,2010) and manure(FS60Taylor,2010;FS82Taylor and Garnier,2011).How-ever,attention should also be paid to the N,P and K ratio of fertilisers in relation to the type and amount of manure that is applied to thefields and crop requirements(FS63Turtola,2010).Application rates and forms of applied nutrients shouldfit with the crop requirement and the nutrient status of the soil;the placement and the timing of manure and fertiliser spreading are also important. Crops with large inter-row distances and/or a restricted root distribu-tion,and crops which grow fast after fertilisation,show improved yields when fertiliser is applied in bands rather than broadcast.Depending on the crop,the recommended amount of P can be reduced appreciably(up to75%)when P is band applied rather than broadcast(Van Dijk and Van Geel,2012).The yield improvement is due to better nutrient availabili-ty;in addition,due to the increased uptake efficiency the nutrient losses are smaller(FS08Delgado,2010;Hofman et al.,1992).There are many options to deliver fertiliser nutrients in such a way that they meet the nutrient needs of different crops during the year.Strategies that are being increasingly used by farmers and should be encouraged still further are split nutrient fertiliser applications,and better timing of fertiliser applications or controlled release fertiliser,which result in more efficient nutrient uptake by plants.Under the EU Nitrate Action Programme,EC Member States are obliged to restrict the period in which it is permitted to spread manure or fertiliser.To date,the closed period for manure and fertiliser application differs between the Member States.1Moreover, high nutrient losses can occur even during closed periods.A good ag-ricultural practice guideline could be to avoid applying manure and fertiliser before predicted heavy or prolonged rainfall events(FS15 Garnier,2010;FS16Garnier and Harris,2010;FS61Taylor,2010; FS81Garnier et al.,2011),or to make it mandatory for the manure to be injected or ploughed in directly after application(FS25Haygarth, 2010).This could affect the manure handling on the farm(FS24 Haygarth,2010;FS27Haygarth,2010;FS44Newell Price,2010;FS59 Taylor,2010)and the manure storage capacity required(FS26 Haygarth,2010;FS50Newell Price and Morvan,2010;FS62Taylor, 2010;FS83Newell Price et al.,2011).For farms with a large nutrient surplus,such as intensive livestock farms,additional specific measures should be taken.Total P in fodder often exceeds animal requirements and can be reduced to decrease the P content in excretions(FS80Van Krimpen and Jongbloed,2010). Reducing total P in animal diets will increase the manure N:P ratio.It will contribute to reducing a surplus in the P balance of a farm or region, and decrease the need for manure transport or processing.The main options for reducing P content in excretion are(Esmaeilipour et al., 2012;FS01Bannink,2010;FS80Van Krimpen and Jongbloed,2010; Maguire et al.,2005):–feed in accordance with the growth phase of the animal;–add phytase to feed(poultry and pig)to increase the ability to digest phytate-P;–feed with a lower content of phytate-P;–use or produce feed that is more digestible;and–maximise the use of available plant phytases to predigest phytate-P before feeding feed ingredients to the animals.As a consequence of applying the options mentioned above Jongbloed and Lenis(1998)showed that in the Netherlands total P in feed for growing–finishing pigs fell by over2.5g/kg(33%)from1973 to1996,which led to P excretion falling from1.62to0.67kg P/pig. The introduction of microbial phytase in the last decade of the20th cen-tury stimulated the further reduction of P excretion.Furthermore,it is possible to remove phosphates from phytate-rich fodders,thereby making it possible to reduce the phosphate intake of pigs without adversely affecting their health and growth(Meesters et al.,2011).A farm P surplus should be transported to neighbouring farms or to nearby less intensive agricultural areas(Lopez-Ridaura et al.,2009). Sometimes it is worthwhile separating a manure surplus into a liquid fraction(with high N and low P content)and a more solid fraction (high P and low N).The liquid can be applied to the land locally,and then only the more nutrient-rich solid fraction needs to be transported. Such an approach can be especially successful on a livestock farm with sufficient land of its own(Schröder et al.,2009).Instead of being transported over a long distance,the manure can be collected and processed in the region–e.g.via digestion(biogas production)–or the solid fraction can be incinerated to produce energy.Furthermore, 1http://ec.europa.eu/environment/water/water-nitrates/index_en.html.1258O.F.Schoumans et al./Science of the Total Environment468–469(2014)1255–1266the ash is rich in P that can be reused(FS46Newell Price,2010; Schoumans et al.,2010).Since over80%of all P that is mined worldwide as rock is used in agriculture(in feed and fertilisers),this can contribute to sustainably closing the terrestrial P cycle.A more drastic step is to set a maximum permissible livestock density(as in Denmark)or animal production level.In general,the economic and social impacts of such severe measures make it difficult to restructure agriculture in order to create a regional/national N and P balance that reduces the risk of surface water pollution(Senthilkumar et al.,2012a,2012b).3.2.Field system:soil and crop managementSoil and crop management affect the nutrient efficiency and nutrient losses directly,and many modifications to management have been suggested as mitigation options against P losses(Table2).The main purpose of soil management is to improve the soil's pro-duction potential for a certain crop.A number of soil management methods are available:they can be divided into soil tillage methods and soil amendments.Examples of soil tillage methods are direct dril-ling(no-ploughing and only minor disturbance of the topsoil),shallow cultivation and ploughing(FS02Bechmann and Krogstad,2010;FS77 Ulén et al.,2010).Examples of soil amendments are organic matter (FS66Ulén et al.,2010)and chemical additives(FS05Chardon and Dorioz,2010;FS79Ulén et al.,2010).Cropping systems without ploughing are attracting much attention in Europe,for economic reasons(such as reduction in labour and energy consumption)and because of their potential to improve soil(Holland, 2004).In cereal cropping,soil tillage contributes to increased soil ero-sion risk,and thereby also to the risk of particulate P(PP)losses (Lundekvam and Skøien,1998).The risk furthermore depends on slope and soil texture,with silty and low organic content soils being more vulnerable to soil erosion than clayey and sandy soil types.The main soil tillage mitigation options are:1.No tillage/direct drilling:Tillage leaving N30%of the soil coveredwith plant residues,2.Shallow cultivation:Soil tillage to b10cm depth without inversion,3.Ploughing:Soil inversion at20–25cm depth;and4.Contour ploughing.For some sites,deeper and more intense soil tillage increases the erosion risk.In areas where the soil erosion risk is highest during au-tumn and winter,important options to mitigate soil losses in arable cropping systems are direct drilling in autumn(FS03Bechmann et al., 2010)or leaving stubble undisturbed instead of mouldboard ploughing in autumn.In these systems,crop residues and an intact root system may trap and retain soil particles that would be removed by erosion. Furthermore,loosening soil by tillage will increase the risk of mobilisation of soil particles.However,improving aggregate stability by adding plant material will increase biological activity,including earthworm activity,and reduce risk of erosion.The effect of soil till-age on phosphorus losses via surface runoff is related to the soil ero-sion processes,but the relationship between soil tillage and losses of P through leaching is much more complex.Here,in some cases ploughing may destroy macropores,thus hampering the transport of particles and dissolved substances via percolating water(Ulén et al.,2012).In a soil tillage system with direct drilling or shallow cultivation,the topsoil is not inverted.This has great potential for reducing soil erosion and PP losses from unstable,erodible clay loams,silty and clay soils under cereals(FS73Ulén et al.,2010;Grønsten et al.,2007).Similar re-sults have been reported for direct drilling of other crops,e.g.sugar beet (Strauss and Smid,2004).However,if leaving plant material on the soil surface and surface application of P fertiliser are combined with no-till for a succession of years,P accumulates in the topsoil,increasing the risk of dissolved reactive phosphorus(DRP)losses in surface runoff (FS75Ulén et al.,2010).In a Canadian study Gaynor and Findlay (1995)reported higher losses of DRP after reduced tillage compared to conventional ploughing.They suggested that this was a result of P enrichment of the soil surface.Studies from the northern Mississippi in the US concluded that even though total P(TP)losses were consider-ably reduced when soil tillage was omitted,no-till DRP losses were eight times higher than with conventional ploughing(McDowell and McGregor,1984).As DRP has a higher ecological impact than PP due to its higher bioavailability in the short term,direct drilling should pref-erably not be practised on areas where DRP losses from the soil are large,whether from surface water runoff or from leaching via preferen-tialflow through the soil profile and/or tile drainage.However,since PP can at least partly be released and taken up by biota on longer term (Barko and Smart,1980;Bole and Allan,1978;Sharpley,1993; Uusitalo and Yli-Halla,1999),a balance has to be found between reduc-ing PP loss and(the risk of)increased DRP loss.In shallow cultivation,there is no inversion of the topsoil.The soil is usually tilled to a depth of5–10cm and remains covered with some crop residues.Based onfield experiments reviewed in Scandi-navia(Ulén et al.,2010),it can be concluded that,compared to ploughing,shallow cultivation reduces erosion and PP losses,though less so than direct drilling(FS76Ulén et al.,2010).However,Nordic plot experiments showed large variation in the effect of shallow cul-tivation in autumn on soil losses between sites and years(Koskiaho et al.,2002).Table2Mitigation strategies atfield scale.Strategy Aim Measure FactsheetsChange soil management Avoid transport of particles or particulate P No tillage/direct drilling:leaving more than30%of the soil coveredwith plant residues or undisturbed stubble3,69Shallow cultivation:Soil tillage to b10cm depth.No inversion73,76,71Contour ploughing65Switch from autumn tillage to spring tillage74Reduce soil compaction and improve soil structure68,72,75,66,67 Avoid leaching of dissolved P concentrations in soils Conventional ploughing or interspersing periods of ploughless tillagewith conventional ploughingaAdd chemical compounds to the soil to bind soluble P5,79Reduce nutrient budgets and increase soil storage capacity by extensification and agro-forestry Introduce crop rotation and include more years of grass or developmixed(perennial and annual)cropping systems21 Set-aside for several years21Avoid transport of particulate P in tramlines Tillage to avoid tramlines78 Change crop management Avoid erosion and reduce surface runoff Grassland instead of arable crops or grow deep-rooting crops52 Change cropping system Introduce crop rotation and include more years of grass or developmixed(perennial and annual)cropping systems21,33 Avoid leaching Apply catch crops(and harvest the products)51Crop production without fertilisation(P mining)4a Ulén et al.(2012a,2012b),Ulén et al.(2010).1259O.F.Schoumans et al./Science of the Total Environment468–469(2014)1255–1266。

1Introduction to strategic management accounting1.1I ntroduction to planning, control and decision making☞Strategic planning is the process of deciding on objectives of the organization, on changes in these objectives, on the resource to attain these objectives, and on the policies that are to govern the acquisition, use and disposition of these resources.☞Characteristics of strategic information⏹Long term and wide scope⏹Generally formulated in writing⏹Widely circulated广泛流传⏹Doesn’t trigger direct action, but series of lesser plans⏹Includes selection of products, purchase of non-current assets, required levels ofcompany profit☞Management control: the process by which management ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organisation’s objectives. It is sometimes called tactics ad tactical planning.☞Characteristics of management accounting information⏹Short-term and non-strategic⏹Management control planning activities include preparing annual sales budget⏹Management control activities include ensuring budget targets are reached⏹Carried out in a series of routine and regular planning and comparison procedures⏹Management control information covers the whole organisation, is routinely collected,is often quantitative and commonly expressed in money terms (cash flow forecasts, variance analysis reports, staffing levels⏹Source of information likely to be endogenous内生的☞Characteristics of operational control⏹Short-term and non-strategic⏹Occurs in all aspects of an organisations activities and need for day to dayimplementation of plans⏹Often carried out at short notice⏹Information likely to have an endogenous source, to be detailed transaction data,quantitative and expressed in terms of units/hours⏹Includes customer orders and cash receipts.1.2Management accounting information for strategic planning and control☞Strategic management accounting is a form of management accounting in which emphasis is placed on information about factors which are external to the organisation, as well as non-financial and internally-generated information.⏹External orientation: competitive advantage is relative; customer determination⏹Future orientation: forward- and outward looking; concern with values.⏹Goal congruence: translates the consequences of different strategies into a commonaccounting language for comparison; relates business operations to financial performance.1.3Planning and control at strategic and operational levels☞Linking strategy and operations, if not: unrealistic plans, inconsistent goals, poor communication, inadequate performance measurement.1.3.1Strategic control systems☞Formal systems of strategic control:⏹strategy review;⏹identify milestones of performance( outline critical success factors, short-term stepstowards long-term goals, enables managers to monitor actions)⏹Set target achievement levels (targets must be reasonably precise, suggest strategiesand tactics, relative to competition)⏹Formal monitoring of the strategic process⏹Reward.☞Desired features of strategic performance measures⏹Focus on what matters in the long term⏹Identify and communicate drivers of success⏹Support organisational learning⏹Provide a basis for reward⏹Measurable; meaningful; acceptable;⏹Described by strategy and relevant to it⏹Consistently measured⏹Re-evaluated regularly1.4Benchmarking1.4.1Types of benchmarking☞Internal benchmarking: easy; no innovative or best-practice.☞Industry benchmarking:⏹Competitor benchmarking: difficult to obtain information⏹Non-competitor benchmarking: motivate☞Functional benchmarking: find new, innovative ways to create competitive advantage1.4.2Stages of benchmarking☞Set objectives and determine the area to benchmark☞Establish key performance measures.☞Select organizations to study☞Measure own and others performance☞Compare performance☞Design and implement improvement prgoramme☞Monitor improvements1.4.3Reasons for benchmarking☞Assess current strategic position☞Assess generic competitive strategy☞Spur to innovation☞Setting objectives and targets☞Cross comparisons☞Implementing change☞Identifies the process to improve☞Helps with cost reduction, or identifying areas where improvement is required☞Improves the effectiveness of operations☞Delivers services to a defined standard☞Provide early warning of competitive disadvantage1.4.4Disadvantages of benchmarking☞Implies there is one best way of doing business☞Yesterday’s solution to tomorrow’s problem☞Catching-up exercise rather than the development of anything distinctive☞Depends on accurate information about comparator companies☞Potential negative side effects of ‘what gets measured gets done’.2Performance management and control of the organization2.1Strengths and weaknesses of alternative budget models2.1.1Incremental budgeting☞Is the traditional approach to setting a budget and involves basing next year’s budget on the current year’s results plus an extra amount for estimated growth of inflation next year. ☞Strengths: easy to prepare; can be flexed to actual levels to provide more meaningful control information☞Weaknesses: does not take account of alternative options; does not look for ways of improving performance; only works if current operations are as effective, efficient and economical as they can be; encourage slack in the budget setting process.2.1.2Zero based budgeting☞Preparing a budget for each cost centre from scratch.☞Strengths:⏹Provides a budgeting and planning tool for management that responds to changes inthe business environment.⏹Requires the organization to look very closely at its cost behavior patterns, andimproves understanding of cost-behaviour patterns.⏹Should help identify inefficient or obsolete processes, and thereby also help reducecosts.⏹Results in a more efficient allocation of resources⏹Be particularly useful in not-for-profit organizations which have a focus on achievingvalue for money.☞Weaknesses:⏹Requires a lot of management time and effort⏹Requires training in the use of ZBB techniques so that these are applied properly⏹Questioning current practices and processes can be seen as threatening2.1.3Rolling budgets☞Continuously updated by adding a further period when the earliest period has expired.☞Strengths:⏹Reduce the uncertainty of budgeting for business operating in an unstableenvironment. It is easier to predict what will happen in the short-term.⏹Most suitable form of budgeting for organizations in uncertain environments, wherefuture activity levels, costs or revenues cannot be accurately foreseen.⏹Planning and control is based on a more recent plan which is likely to be morerealistic an more relevant than a fixed annual budget drawn up several months ago.⏹The process of updating the budget means that managers identify current changes( and so can respond to these changes more quickly)⏹More realistic targets provide a better basis on which to appraise managers’performance⏹Realistic budgets are likely to have a better motivational effect on managers.☞Weaknesses:⏹Require time, effort and money to prepare and keep updating. If managers spend toolong preparing/revising budgets, they will have less time to control and manage actual results⏹Managers may not see the value in the continuous updating of budgets⏹May be demotivating if targets are constantly changing⏹It may not be necessary to update budgets so regularly in a stable operatingenvironment.2.1.4Flexible budgets☞Recognizing the potential uncertainty, budgets designed to adjust costs levels according to changes in the actual levels of activity and output.☞Strengths:⏹Finding out well in advance the costs of idle time and so on if the output falls belowbudget.⏹Being able to plan for the alternative use of spare capacity if output falls short ofbudget☞Weaknesses:⏹As many errors in modern industry are fixed costs, the value of flexible budgets as aplanning tool are limited.⏹Where there is a high degree of stability, the administrative effort in flexiblebudgeting produces little extra benefit. Fixed budgets can be perfectly adequate in these circumstances.2.1.5Activity based budgeting☞Involves defining the activities that underlie the financial figures in each function and usingthe level of activity to decide how much resources should be allocated, how well it is being managed and to explain variance from budget.☞Strengths:⏹Ensures that the organisation’s overall strategy and any changes to that strategy willbe taken into account.⏹Identifies critical success factors which are activities that a business must perform wellif it is to succeed⏹Recognizes that activities drive costs; so encourages a focus on controlling andmanaging cost drivers rather than just the costs⏹Concentrate on the whole activities so that there is more likelihood of getting it rightfirst time.☞Weaknesses:⏹Requires time and effort to prepare so suited to a more complex organization withmultiple cost drivers.⏹May be difficult to identify clear individual responsibilities for activities⏹Only suitable for organization which have adopted an activity-based costing system⏹ABBs are not suitable for all organization, especially with significant proportions offixed overheads.2.1.6The future of budgeting☞Criticisms of traditional budgeting⏹Time consuming and costly⏹Major barrier to responsiveness, flexibility and change⏹Adds little value given the amount of management time required⏹Rarely strategically focused⏹Makes people feel undervalued⏹Reinforces department barriers rather than encouraging knowledge sharing⏹Based on unsupported assumptions and guesswork as opposed to sound,well-constructed performance data⏹Development and updated infrequently2.2Budgeting in not-for-profit organizations☞Special issues: the budget process inevitably has considerable influence on organizational processes, and represents the financial expression of policies resulting from politically motivated goals and objectives. The reality of life for many public sector managers is an subjected to(受---支配) growing competition.⏹Be prevented from borrowing funds⏹Prevent the transfer of funds from one budget head to another without compliancewith various rules and regulations⏹Plan one financial year.⏹Incremental budgeting and the bid system are widely used.2.3Evaluating the organisation’s move beyond budgeting2.3.1Conventional budgeting in a changing environment☞Weaknesses of traditional budgets:⏹Adds little value, requires far too much valuable management time⏹Too heavy a reliance on the ‘agreed’ budget has an adverse impact on managementbehavior, which can become dysfunctional(功能失调的) with regard to(关于) the objectives of the organization as a whole⏹The use of budgeting as a base for communicating corporate goals, is contrary to theoriginal purpose of budgeting as a financial control mechanism⏹Most budgets are not based on a rational, causal(因果关系的) model of resourceconsumption, but are often the result of protracted internal bargaining processes.⏹Conformance to budget is not seen as compatible with a drive towards continuousimprovement⏹Traditional budgeting processes have insufficient external focus.2.3.2The beyond budgeting model☞Rolling budgets focus management attention on current and likely future realities within the organizational context, it is seen as an attempt to keep ahead of change, or strictly speaking to be more in control of the response to the challenges facing the organization. ☞Benefits:⏹Creates and fosters a performance climate based on competitive success. Managerialfocus shifts from beating other managers for a slice(部分) of resources to beating the competition.⏹It motivates properly by giving them challenges, responsibilities and clear values asguidelines. Rewards are team-based⏹It empowers operational managers to act by removing resource constraints. Speedingup the response to environmental threats and enabling quick exploitation of new opportunities.⏹It devolves performance responsibilities to operational management who are closer tothe action.⏹It establishes customer-orientated teams that are accountable for profitable customeroutcomes.⏹Creates transparent and open information systems throughout the organization,provides fast, open and distributed information to facilitate control at all levels.3Business structure, IT development and other environmental and ethical issues3.1Business structure and information needs3.1.1Functional departmentation☞Information characteristics and needs: information flows vertically; functions tend to be isolated☞Implications for performance management⏹Structure is based on work specialism⏹Economies of scale⏹Does not reflect the actual business processes by which values is created⏹Hard to identify where profits and losses are made on individual products or inindividual markets⏹People do not have an understanding of how the whole business works⏹Problems of co-ordinating the work of different specialisms.3.1.2The divisional form☞Information characteristics and needs⏹Divisionalisation is the division of a business into autonomous regions⏹Communication between divisions and head office is restricted, formal and related toperformance standards⏹Headquarters management influence prices and therefore profitability when it setstransfer prices between divisions.⏹Divisionalisation is a function of organisation size, in numbers and in product-marketactivities.☞Implications for performance management⏹Divisional management should be free to use their authority to do what they think isright, but must be held accountable to head office⏹ A division must be large enough to support the quantity and quality of managementit needs⏹Each division must have a potential for growth in its own area of operations⏹There should be scope and challenge in the job for the management of the division☞Advantages:⏹Focuses the attention of subordinate(下级) management on business performanceand results⏹Management by objectives can be applied more easily⏹Gives more authority to junior managers, more senior positions⏹Tests junior managers in independent command early in their careers and at areasonably low level in the management hierarchy.⏹Provides an organisation structure which reduces the number of levels ofmanagement.☞Problems:⏹Partly insulated from shareholders and capital markets⏹The economic advantages it offers over independent organisations ‘reflectfundamental inefficiencies in capital markets’⏹The divisions are more bureaucratic than they would be as independent corporation⏹Headquarters management usurp divisional profits by management charges,cross-subsidies, unfair transfer pricing systems.⏹Sometime, it is impossible to identify completely independent products or markets⏹Divisionalisation is only possible at a fairly senior management level⏹Halfway house(中途地点)⏹Divisional performance is not directly assessed by the market⏹Conglomerate diversification3.1.3Network organisations☞Information characteristics and needs: achieve innovative response in a changingcircumstances; communication tends to be lateral(侧面的), information and advice are given rather than instructions(指令) and decisions.☞Virtual teams: share information and tasks; make joint decision; fulfil the collaborative function of a team)☞Implications for performance management⏹Staffing: shamrock organisation⏹Leasing of facilities such as IT, machinery and accommodation(住房)⏹Production itself might be outsourced⏹Interdependence of organisations☞Benefits: cost reduction; increased market penetration; experience curve effects.3.2Business process re-engineering3.2.1Business processes and the technological interdependence betweendepartments☞Pooled interdependence(联营式相互依赖): each department works independently to the others, subjects to achieve the overall goals☞Sequential interdependence(序列式相互依存): a sequence with a start and end point.Management effort is required to ensure than the transfer of resources between departments is smooth.☞Reciprocal interdependence(互惠式相互依存): a number of departments acquire inputs from and offer outputs to each other.3.2.2Key characteristics of organisations which have adopted BPR☞Work units change from functional departments to process teams, which replace the old functional structure☞Jobs change. Job enlargement and job enrichment☞People’s roles change. Make decisions relevant to the process☞Performance measures concentrate on results rather than activities.☞Organisation structures change from hierarchical to flat3.3Business integration3.3.1Mckinsey 7S model☞Hard elements of business behaviour⏹Structure: formal division of tasks; hierarchy of authority⏹Strategy: plans to outperform胜过its competitors.⏹Systems: technical systems of accounting, personnel, management information☞‘soft’ elements⏹Style: shared assumptions, ways of working, attitudes and beliefs⏹Shared values: guiding beliefs of people in the organisation as to why it exists⏹Staff: people⏹Skills: those things the organisation does well3.3.2Teamwork and empowerment☞Aspects of teams:⏹Work organisation: combine the skills of different individuals and avoid complexcommunication⏹Control: control the behaviour and performance of individuals, resolve conflict⏹Knowledge generation: generate ideas⏹Decision making: investigate new developments, evaluate new decisions☞Multi-disciplinary teams:⏹Increases workers‘ awareness of their overall objectives and targets⏹Aids co-ordination⏹Helps to generate solutions to problems, suggestions for improvements☞Changes to management accounting systems⏹Source of input information: sources of data, methods used to record data⏹Processing involved: cost/benefit calculation⏹Output required: level of detail and accuracy of output, timescales involved⏹Response required:⏹When the output is required:3.4Information needs of manufacturing and service businesses3.4.1Information needs of manufacturing businesses☞Cost behaviour:⏹Planning: standard costs, actual costs compared with⏹Decision making: estimates of future costs to assess the likely profitability of a product⏹Control: monitor total cost information☞Quality: the customer satisfaction is built into the manufacturing system and its outputs☞Time: production bottlenecks, delivery times, deadlines, machine speed☞Innovation: product development, speed to market, new process. Experience curve, economies of scale, technological improvements.☞Valuation:☞Strategic, tactical and operational information⏹Strategic: future demand estimates, new product development plans, competitoranalysis⏹Tactical: variance analysis, departmental accounts, inventory turnover⏹Operational: production reject rates, materials and labour used, inventory levels3.4.2Service businesses☞Characteristics distinguish from manufacturing:⏹Intangibility: no substance⏹Inseparability/simultaneity: created at the same time as they are consumed⏹Variability/heterogeneity异质性: problem of maintaining consistency in the standardof output⏹Perishability非持久性:⏹No transfer of ownership:☞Strategic, tactical and operational information⏹Strategic: forecast sales growth and market share, profitability, capital structure⏹Tactical: resource utilisation, customer satisfaction rating⏹Operational: staff timesheets, customer waiting time, individual customer feedback3.5Developing management accounting systems3.5.1Setting up a management accounting system☞The output required: identify the information needs of managers☞When the output is required:☞The sources of input information: the output required dictate the input made3.6Stakeholders’ goals and objectives3.6.1The stakeholder view☞Organisations are rarely controlled effectively by shareholders☞Large corporations can manipulate markets. Social responsibility☞Business receive a lot of government support☞Strategic decisions by businesses always have wider social consequences.3.6.2Stakeholder theory☞Strong stakeholder view: each stakeholder in the business has a legitimate claim on management attention. Management’s job is to balance stakeholder demands:⏹Managers who are accountable to everyone are accountable to none⏹Danger of the managers favour their own interests⏹Confuses a stakeholder’s interest in a firm with a person citizenship of a state⏹People have interest, but this does not give them rights.3.7Ethics and organisation3.7.1Short-term shareholder interest(laissez-faire自由主义stance)☞Accept a duty of obedience to the demands of the law, but would not undertake to comply with any less substantial rules of conduct.3.7.2Long-term shareholder interest (enlightened self-interest开明自利)☞The organisation’s corporate image may be enhanced by an assumption of wider responsibilities.☞The responsible exercise of corporate power may prevent a built-up of social and political pressure for legal regulation.3.7.3Multiple stakeholder obligations☞Accept the legitimacy of the expectations of stakeholders other than shareholders. It is important to take account of the views of stakeholders with interests relating to social and environmental matters.☞Shape of society: society is more important than financial and other stakeholder interests.3.7.4Ethical dilemmas☞Extortion: foreign officials have been known to threaten companies with the complete closure of their local operations unless suitable payments are made☞Bribery: payments for service to which a company is not legally entitled☞Grease money: cash payments to the right people to oil the machinery of bureaucracy.☞Gifts: are regard as an essential part of civilised negotiation.4Changing business environment and external factors4.1The changing business environment4.1.1The changing competitive environment☞Manufacturing organisations:⏹Before 1970s, domestic markets because of barriers of communication andgeographical distance, few efforts to maximise efficiency and improve management practices.⏹After 1970s, overseas competitors, global networks for acquiring raw materials anddistributing high-quality, low-priced goods.☞Service organisations:⏹Prior to the 1980s: service organisations were government-owned monopolies, wereprotected by a highly-regulated, non-competitive environment.⏹After 1980s: privatisation of government-owned monopolies and deregulation, intensecompetition, led to the requirement of cost management and management accounting information systems.☞Changing product life cycles: competitive environment, technological innovation, increasingly discriminating and sophisticated customer demands.☞Changing customer requirements: Cost efficiency, quality (TQM), time (speedier response to customer requests), innovation☞New management approaches: continuous improvement, employee empowerment; total value-chain analysis☞Advanced manufacturing technology(AMT): encompasses automatic production technology, computer-aided design and manufacturing, flexible manufacturing systems and a wide array of innovative computer equipment.4.1.2The limitation of traditional management accounting techniques in achanging environment☞Cost reporting: costs are generally on a functional basis, the things that businesses do are “process es’ that cut across functional boundaries☞Absorption costing(归纳成本计算法)☞Standard costing: ignores the impact of changing cost structures; doesn’t provide any incentive to try to reduce costs further, is inconsistent with the philosophy of continuous improvement.☞Short-term financial measures: narrowly focused☞Cost accounting methods: trace raw materials to various production stages via WIP. With JIT systems, near-zero inventories, very low batch sizes, cost accounting and recording systems are greatly simplified.☞Performance measures: product the wrong type of response☞Timing: cost of a product is substantially determined when it is being designed, however, management accountants continue to direct their efforts to the production stage.☞Controllability: only a small proportion of ‘direct costs’are genuinely controllable in the short term.☞Customers: many costs are driven by customers, but conventional cost accounting does not recognise this.☞The solution: changes are taking place in management accounting in order to meet the challenge of modern developments.4.2Risk and uncertainty4.2.1Types of risk and uncertainty☞Physical: earthquake, fire, blooding, and equipment breakdown. Climatic changes: global warming, drought;☞Economic: economic environment turn out to be wrong☞Business: lowering of entry barriers; changes in customer/supplier industries; new competitors and factors internal to the firm; management misunderstanding of core competences; volatile cash flows; uncertain returns☞Product life cycle:☞Political: nationalisation, sanctions, civil war, political instability☞Financial:4.2.2Accounting for risk☞Quantify the risk:⏹Rule of thumb methods: express a range of values from worst possible result to bestpossible result with a best estimate lying between these two extremes.⏹Basic probability theory: expresses the likelihood of a forecast result occurring⏹Dispersion or spread values with different possible outcomes: standard deviation.4.2.3Basic probability theory and expected valuesEV=ΣpxP=the probability of an outcome occurringX=the value(profit or loss) of that outcome4.2.4Risk preference☞Risk seeker: is a decision maker who is interested trying to secure the best outcomes no matter how small the chance they may occur☞Risk neutral: a decision maker is concerned with what will be the most likely outcome☞Risk averse: a decision maker acts on the assumption that the worst outcome might occur ☞Risk appetite is the amount of risk an organisation is willing to take on or is prepared to accept in pursuing its strategic objectives.4.2.5Decision rules☞Maximin decision rule: select the alternative that offers the least unattractive worst outcome. Maximise the minimum achievable profit.⏹Problems: risk-averse approach, lead to defensive and conservative, without takinginto account opportunities for maximising profits⏹Ignores the probability of each different outcome taking place☞Maximax: looking for the best outcome. Maximise the maximum achievable profit⏹It ignores probabilities;⏹It is over-optimistic☞Minimax regret rule: minimise the regret from making the wrong decision. Regret is the opportunity lost through making the wrong decision⏹Regret for any combination of action and circumstances=profit for best action in shoescircumstances – profit for the action actually chosen in those circumstances4.3Factors to consider when assessing performance4.3.1Political factors☞Government policy; government plans for divestment(剥夺)/rationalisation; quotas, tariffs, restricting investment or competition; regulate on new products.☞Government policy affecting competition: purchasing decisions; regulations and control;policies to prevent the concentration of too much market share in the hands of one or two producers4.3.2Economic environment☞Gross domestic product: grown or fallen? Affection on the demand of goods/services☞Local economic trends: businesses rationalising or expanding? Rents increasing/falling?The direction of house prices moving? Labour rates☞Inflation: too high to making a plan, uncertain of future financial returns; too low to depressing consumer demand; encouraging investment in domestic industries; high rate leading employees to demand higher money wages to compensate for a fall in the value of their wages☞Interest rates: affect consumer confidence and liquidity, demand; cost of borrowing increasing, reducing profitability;☞Exchange rates: impact on the cost of overseas imports; prices affect overseas customers ☞Government fiscal policy: increasing/decreasing demands; corporate tax policy affecting on the organisation; sales tax(VAT) affecting demand.☞Government spending:☞Business cycle: economic booming or in recession; counter-cyclical industry; the forecast state of the economic4.3.3Funding☞Reasons for being reluctant to obtain further debt finance:⏹Fear the company can’t service the debt, make the required capital and interestpayments on time⏹Can’t use the tax shield, to obtain any tax benefit from interest payments⏹Lacks the asset base to generate additional cash if needed or provide sufficientsecurity⏹Maintain access to the capital markets on good terms.4.3.4Socio-cultural factors☞Class: different social classes have different values。

********USER MANUALMulti-RotorXRotor Micro 45A BLHeli_32 4in1 DShot1200Brushless Electronic Speed Controller0103Features04Specifications05User GuideThrottle Range Calibration3Once1. Power up:Once2. Throttle signal detected (arming sequence start):While measuring3. When throttle is above midstick (meauring max throttle):While measuring5. When throttle is below midstick (measuring min throttle):Once4. If throttle is above midstick for 3 seconds:This beep sequence indicates that max throttle has been storedOnce6. If throttle is below midstick for 3 seconds ：This beep sequence indicates that min throttle has been storedAt this point throttle calibration values are stored. You may remove power from the ESC, or just continue running your ESC.Once7. Throttle up detected (arming sequence start):Once8. Zero throttle detected (arming sequence end):06Programming parameters07OthersNormal Start-up Process2After this, the motor will run.Definitions for Different Ports110V: 10V Power output port .(For VTx , Camera , 12V LED light and etc .)BAT: Battery Volt monitoring port with the battery voltage is to connect to the Battery Volt monitoring port on flight controller.CTR: Amp monitoring port with the amperage of 15.2mv/A is to connect to the Amp monitoring port on flight controller.GND: Ground wire ；5V: 5V Power output port . (For FC , Camera , 5V LED light and etc .)S1-4: Throttle Signal Input Ports. Port S1 is for ESC M1, S2 is for M2, S3 is for M3, and S4 is for M4.POWER INPUT:Power input soldering point , “-” for connecting the power wire - , “+” for connecting the power wire + .Although there are some protections, improper use may still cause permanent damage to the product.• Always disconnect and remove batteries after use, as the ESC may drive the motor to rotate and cause unpredictable danger if it`s still connected to the battery. Long-time contact will cause the battery to completely discharge and result in damage to the battery or/and the ESC. This will not be covered under warranty.• The open source ESC can only be flashed with the corresponding firmware (not any other firmware) when flashing or upgrading firmware, otherwise it may cause the ESC to stop working or even damage the chip inside.• This user manual is based on the operation manual for BLHeli_32 ARM rev32.x and only for reference. For more detailed information, please refer to the original BLHeli manual. Due to firmware update or other reasons, the descriptions for functions may differ, so please always take the official BLHeli manual as standard.• High performance 32-bit microprocessor with the running frequency of up to 48MHz for excellent performance. • BLHeli_32 firmware is the third generation BLHeli, following base BLHeli and BLHeli-S.• All codes use damped light mode. Damped light does regenerative braking, causing very fast motor retardation, and inherently also does active freewheeling.• The code supports features to prevent sync loss. There are tunable parameters that can make the code run well even in the most demanding situations, although default settings will work excellently in normal operating environments.• The code supports regular 1-2ms pulse width input, as well as Oneshot125 (125-250us), Oneshot42 (41.7-83.3us) and Multishot (5-25us). • Dshot signaling is supported at any rate up to at least Dshot1200. The input signal is automatically detected by the ESC upon power up.• The code also supports a beacon functionality, where the ESC will start beeping after a given time of zero throttle. This can be very useful for finding lost crafts.• On board 10V &5V BEC , powering different accessories such as FC , VTx ,Camera and LED lights and etc.1. Rampup Power:Rampup power can be set to relative values from 3% to 150%. This is the maximum power that is allowed when ramping up at low RPMs and during start-up. For low RPMs, themaximum power to the motor is limited, in order to facilitate detection of low BEMF voltages. Rampup power also affects bidirectional operation, as the parameter is used to limit the power applied during direction reversal. During startup, the actual applied power depends on throttle input, and can be lower than the maximum level set by the rampup power parameter, but the minimum level is a quarter of the maximum level.2. Temperature Protection:Temperature protection can be enabled or disabled. And the temperature threshold can be programmed. The programmable threshold is primarily meant as a support for hardware manufacturers to use, as different hardware can have different tolerances on the max temperatures of the various components used. 3. Low RPM Power Protection:Power limiting for low RPMs can be enabled or disabled. Disabling it can be necessary in order to achieve full power on some low KV motors running on a low supply voltage. However, disabling it increases the risk of sync loss, with the possibility of toasting motor or ESC. 4. Low Voltage Protection:Low voltage protection can be set between 2.5V and 4.0V per LiPo cell. Or it can be disabled. When enabled, it will limit power applied to the motor if the battery voltage drops below the programmed threshold. This feature is primarily intended for fixed wing crafts. 5. Current Protection:Current protection can be enabled to limit current. If enabled, then current will be limited to maximum the programmed value. The reaction time of the current limiting is quite fast, so current will also be limited during accelerations.The value given for current protection, is per ESC. So if setting limit to e.g. 40A for each of the ESCs in a quad (using BLHeliSuite32), then the total current limit for the four ESCs will be 160A.6. Motor Direction:Motor direction can be set to fwd / rev / bidirectional / bidirectional rev.In bidirectional mode, center throttle is zero and above is fwd rotation and below is reverse rotation. When bidirectional operation is selected, throttle calibration is disabled. 7. Demag Compensation:Demag compensation is a feature to protect from motor stalls caused by long winding demagnetization time after commutation. The typical symptom is motor stop or stutter upon quick throttle increase, particularly when running at a low RPM. As mentioned above, setting high commutation timing normally helps, but at the cost of efficiency. Demag compensation is an alternative way of combating the issue. First of all, it detects when a demag situation occurs. • In this situation, there is no info on motor timing, and commutation proceeds blindly with a predicted timing. • In addition to this, motor power is cut off some time before the next commutation.A metric is calculated that indicates how severe the demag situation is. The more severe the situation, the more power is cut off. When demag compensation is set to off, power is never cut.When setting it to low or high, power is cut. For a high setting, power is cut more aggressively. Generally, a higher value of the compensation parameter gives better protection.If demag compensation is set too high, maximum power can be somewhat reduced for some motors. 8. Motor Timing:Motor timing can be set between approximately 10 and approximately 310 in approximately 10 increments (actual accurate values here are 15/16ths of a degree).Typically a medium setting will work fine, but if the motor stutters it can be beneficial to increase timing. Some motors with high inductance can have a very long commutation demagnetization time. This can result in motor stop or stutter upon quick throttle increase, particularly when running at a low RPM. Setting timing higher will allow more time for demagnetization, and often helps.This parameter can also be set to auto. In this case the code monitors demagnetization time, and keeps timing as low as possible without having issues with demag. On well behaved motors, timing can be low in the entire power range, and thereby max power can be reduced. On not so well behaved motors, timing is increased as needed, and thereby improves margins against sync loss. 9. Maximum Acceleration:Maximum acceleration can be set between 0.1%/ms and 25.5%/ms. It can also be set to maximum, in which case acceleration is not limited. Limiting acceleration is primarily intended as a backup parameter that can be used in cases where too hard acceleration gives desyncs.When setting to e.g. 10%/ms, it means that the power applied to the motor is not allowed to increase by more than 10% per millisecond. 10. Throttle Cal Enable:If disabled, throttle calibration is disabled.11. Minimum Throttle, Maximum Throttle and Center Throttle:These settings set the throttle range of the ESC. Center throttle is only used for bidirectional operation. The values given for these settings are for a normal 1000us to 2000us input signal, and for the other input signals, the values must be scaled. For Dshot input signal, these settings have no effect. 12. Brake On Stop:Brake on stop can be set between 1% and 100%, or disabled. When not disabled, the given brake force will be applied when throttle is zero. For nonzero throttle, this setting has no effect. This feature is primarily intended for fixed wing crafts with folding props.On some ESCs this setting is not linearly programmable, it will just be enabled (at 100% force for any setting 1%-100%) or disabled (this applies to ESCs that have “EN/PWM” style fet drivers). 13. LED Control:LEDs can be controlled on ESCs that support it. Up to 4 LEDs can be turned on or off. 14. Beep Strength:Sets the strength of beeps under normal operation. 15. Beacon Strength:Sets the strength of beeps when beeping beacon beeps. The ESC will start beeping beacon beeps if the throttle signal has been zero for a given time. Note that setting a high beacon strength can cause hot motors or ESCs! 16. Beacon Delay:Beacon delay sets the delay before beacon beeping starts. 17. PWM frequency:Motor PWM frequency can be programmed between 16kHz and 48kHz. Higher PWM frequency can run motors smoother. Programmable frequency also allows for moving of small but potentially disturbing bumps in the throttle response. All ESCs have these bumps, with BLHeli_32 they can be moved in the RPM range, to a place where the system has low sensitivity to them.1. Thermal ProtectionThe ESC measures temperature within the MCU and limits motor power if the temperature is too high. Motor power is limited over a range: • If the temperature is above the threshold, motor power begins to be limited.• If the temperature is above the threshold plus approximately 150℃, motor power is limited to 25%. Motor power is not limited below 25%. 2. Stall ProtectionIf the motor has attempted to start but not succeeded for a few seconds, it will stop attempting and wait for throttle to be zeroed before attempting again. 3. Beacon---BeepsIf the ESC is armed and sees zero throttle for a given time, it beeps beacon beeps, which are approximately one beep per three seconds.4. Not activated ESC---BeepsAll ESCs shall be activated during manufacturing. If for some reason this is not done, the ESC will beep like this upon power up, before the normal operation beep sequence starts: “B, B, B… (the time interval shortens gradually)”. If for some reason activation has failed and the ESC is not regarded as a valid BLHeli_32 unit, the ESC will beep like this upon power up, before the normal operation beep sequence starts: “BBB, BBB, BBB…(the tone of the “BBB” changes from high to low)”. In this case the ESC will only accept 1-2ms pwm input signal. 5. Other Relevant InformationBLHeli official website: https:///bitdump/BLHeliBLHeli32 official documentation download website: https:///bitdump/BLHeli/tree/master/BLHeli_32%20ARM Firmware: Hobbywing_XRotor_BLHeli32...。

8. BUDGETARY CONTROL1. DEFINE THE TERM BUDGET.Definition:Budget is a financial and /or quantitative statement, prepared and approved prior to a defined Period of time of the policy to be pursued during that period for the purpose of attaining a given objective. It may include income, expenditure and employment of capital.Features:1. Financial and/or Quantitative Statement.2. Futuristic ­ prepared and approved prior to a defined period of time.3. Goal Oriented ­ for the purpose of attaining a given objective.4. Components ­ Income, Expenditure and Employment of Capital.2. WHAT ARE THE OBJECTIVES OF BUDGETING/PERFORMANCE BUDGETING?The objectives of Budgeting are­1.To encourage self­study in all aspects of a Company's operations.2.To get all members of management to “put their heads” to the basic question of how the businessshould be run, to make them of a co­ordinated team operating in unison towards clearly defined objectives.3.To promote the planning process and provide a sense of direction to every member of theorganization.4.To force a definition and crystallization of Company policies and aims.5.To increase the effectiveness with which people and capital are employed.6.To disclose areas of potential improvement in the Company’s operations.7.To stimulate study of relationship of the Company to its external economic environment forimproving the effectiveness of its direction.8.To direct and co­ordinate business activities and units to achieve stated targets of performance.9.To facilitate the control process, by comparing actual results with plan, and provide feedback tothe employees about their performance.3. DEFINE THE TERM BUDGETARY CONTROL. WHAT ARE ITS SALIENT FEATURES?1. Definition: Budgetary Control is defined as "the establishment of budgets, relating theresponsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results either to secure by individual action the objective of that policy or to provide a base for its revision.2. Salient features:a. Objectives: Determining the objectives to be achieved, over the budget period, and the policy(ies) that might be adopted for the achievement of these ends.b. Activities: Determining the variety of activities that should be undertaken for achievement ofthe objectives.c. Plans:Drawing up a plan or a scheme of operation in respect of each class of activity, inphysical a well as monetary terms for the full budget period and its parts.d. Performance Evaluation: Laying out a system of comparison of actual performance by eachperson section or department with the relevant budget and determination of causes for the discrepancies, if any.e. Control Action: Ensuring that when the plans are not achieved, corrective action are taken;and when corrective actions are not possible, ensuring that the plans are revised and objective achieved4. WHAT ARE THE OBJECTIVES OF BUDGETARY CONTROL SYSTEM?The objectives of a Budgetary Control System are ­1. Definition of Goals: Portraying with precision, the overall aims of the business and determiningtargets of performance for each section or department of the business.2. Defining Responsibilities: Laying down the responsibilities of each individual so that everyoneknows what is expected of him and how he will be judged.3. Basis for Performance Evaluation: Providing basis for the comparison of actual performancewith the predetermined targets and investigation of deviation, if any, of actual performance and expenses from the budgeted figures. It helps to take timely corrective measures.4. Optimum use of Resources: Ensuring the best use of all available resources to maximize profitor production, subject to the limiting factors.5. Co­ordination: Coordinating the various activities of the business and centralizing control, butalso making a facility for the Management to decentralize responsibility and delegate authority.6. Planned action: Engendering a spirit of careful forethought, assessment of what is possible andan attempt at it. It leads to dynamism without recklessness. It also helps to draw up long range plans with a fair measure of accuracy.7. Basis for policy: Providing a basis for revision of current and future policies. 5. WHAT ARE THE DISADVANTAGES/LIMITATIONS OF THE BUDGETARY CONTROL SYSTEM?1. Estimates: Budgets may or may not be true, as they are based on estimates. The assumptionsabout future events may or may not actually happen.2. Rigidity: Budgets are considered as rigid document. Too much emphasis on budgets may affectday­today operations and ignores the dynamic state of organizational functioning.3. False Sense of Security: Mere budgeting cannot lead to profitability. Budgets cannot beexecuted automatically. It may create a false sense of security that everything has been taken care of in the budgets.4. Lack of co­ordination: Staff co­operation is usually not available during Budgetary Control exercise.5. Time and Cost: The introduction and implementation of the system may be expensive.6. WHAT ARE THE DIFFERENT TYPES OF BUDGETS?DISTINGUISH BETWEEN FIXED AND FLEXIBLE BUDGETS.Budgets may be classified on the following bases –1. BASED ON TIME PERIOD: Long Term BudgetShort Term Budget a. Budgets which are prepared for periodslonger than a year are called Long­TermBudgets.b. Such Budgets are helpful in businessforecasting and forward planning.c. Examples: Capital Expenditure Budget andR&D Budget. a. Budgets which are prepared for periods less than a year are known as Short­Term Budgets. b. Such Budgets are prepared in cases where a specific action has to be immediately taken to bring any variation under control. c. Example: Cash Budget.1. Time­Period2. Conditions3. Capacity4. Coverage a. Long­term Budget &b. Short­term Budget a. Basic Budget and b. Current Budget a. Fixed Budget and b. Flexible Budget a. Functional Budget and b. Master Budget2. BASED ON CONDITION:Basic Budget Current BudgetA Budget, which remains unaltered over a long period of time, is called Basic Budget. A Budget, which is established for use over a short period of time and is related to the current conditions, is called Current Budget.3. BASED ON CAPACITY:Particulars Fixed Budget Flexible Budgeta.Definition It is a Budget designed to remainunchanged irrespective of the levelof activity actually attained.It is a Budget, which byrecognizing the differencebetween fixed, semi­variable andvariable costs is designed tochange in relation to level ofactivity attained.b.Rigidity It does not change with actualvolume of activity achieved. Thusit is known as a Rigid or Inflexiblebudget.It can be re­casted on the basisof activity level to be achieved.Thus it is not rigid.c.Level ofActivity It operates on one level of activityand under one set of conditions. Itassumes that there will be nochange in the prevailingconditions, which is unrealistic.It consists of various budgets fordifferent levels of activityd.Effect ofvarianceanalysis Variance Analysis does not giveuseful information as all Costs(fixed, variable and semi­variable)are related to only one level ofactivity.Variance Analysis providesuseful information as each costis analysed according to itsbehaviour.e forDecisionmaking If the budgeted and actual activitylevels differ significantly, thenaspects like cost ascertainmentand price fixation do not give acorrect picture.If facilitates the ascertainment ofcost, fixation of selling price andsubmission of quotations.f.PerformanceEvaluation Comparison of actual performancewith budgeted targets will bemeaningless, especially whenthere is a difference between twoactivity levels.It provides a meaningful basis ofcomparison of the actualperformance with the budgetedtargets.4. BASED ON COVERAGE:Functional Budget Master BudgetBudgets, which relate to the individual functions in an organization, are known as Functional Budgets, e.g. purchase Budget, Sales Budget, Production Budget, plant­ Utilization Budget and Cash Budget. It is a consolidated summary of the various functional budgets. It serves as the basis upon which budgeted Profit & Loss Account and forecasted Balance Sheet are built up.7. WHAT ARE THE ADVANTAGES OF THE BUDGETARY CONTROL SYSTEM?1.The use of budgetary control system enables the management of a business concern to conductits business activities in the efficient manner.2.It is a powerful instrument used by business houses for the control of their expenditure. It infactprovides 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 comparisonwith actual figures.4.Effective utilization of various resources like­men, material, machinery and money is madepossible, 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 businessorganization.7.It inculcates the feeling of cost consciousness among workers.8. Write about different steps in preparation of budgets?1. Definition of objectives– A budget being a plan for the achievement of certain operationalobjectives, 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 bemore than one) which sets a limit to the total activity. For instance, in India today sometimes non­availability 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 required whole time services of asenior 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 co­ordinating 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 organization and procedures. The manual should be well written and indexed so that a copy thereof may be given to each departmental head for guidance.4. Budget Period – The period covered by a budget is known as budget period. There is no generalrule 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 sub­divided into shorter periods­it 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 becompletely relied upon, for the past usually represents as 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.9. Write about Functional budget?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:1. Sales budget2. Production budget3. Plant utilization budget4. Direct­material usage budget5. Direct­material purchase budget6. Direct­labour (personnel) budget7. Factory overhead budget8. Production cost budget9. Ending­inventory budget10. Cost­of­goods­sold budget11. Selling and distribution cost budget12. Administration expenses budget13. Research and development cost budget14. Capital expenditure budget15. Cash budget16. Budget Summaries / master budget – budgeted income statement and Budgeted balance sheet.10. Write about Flexible budget?Flexible budget: A flexible budget is defined as “a budget which, by recognizing the difference between fixed, semi­variable and variable costs is designed to change in relation to the level of activity attained”. A fixed budget, on the other hand is a budget which is designed to remain unchanged irrespective of the level of activity actually attained. In a fixed budgetary control, budgets are prepared for one level of activity whereas in a flexible budgetary control system, a series of budgets are prepared one for each of a number of alternative production levels or volumes. Flexible budgets represent the amount of expenses that is reasonably necessary to achieve each level of output specified. In other words, the allowances given under flexible budgetary control system serve as standards of what costs should be at each level of output.Need: The need for the preparation of the flexible budgets arises in the following circumstances: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 itsproducts frequently;3. industries engaged in make­to­order business like ship building;4. an industry which is influenced by changes in fashion; and5. general changes in sales.The End。

Chapter 1：1)Project:A finite endeavor that:Has a definite beginning and definite endIs uniqueConsumes resource2) The main differences between a program and a project are that a programachieves a strategy or mission, is realized through multiple projects and ongoing activity, and has a scope that might either be broadly defined or be specific.3) Project Management is the management of:KnowledgeSkillsToolsTechniques4) The four important PM factors are:ScopeTimeCostResources5) Project Lifecycle:Projects are usually divided into phases(阶段)Collectively, the phases are called the project lifecycleProject lifecycles are often similar but rarely identical6) PMI (Project Management Institute),the worldwide project management organization, defined the project management process with 5 process groups and9 knowledge areas such as Integration,Scope, Time, Cost, Quality, Human resource, Communication, Risk and Procurement.7) Why the need to study project management?Often IT project came in behind schedule, over budget, or not at all.The compression of product life cycles.Global competitionKnowledge explosionCorporate downsizing –“right” sizing8) Advantages of Using Formal Project ManagementBetter control of financial, physical, and human resourcesImproved customer relationsShorter development timesLower costsHigher quality and increased reliabilityHigher profit marginsImproved productivityBetter internal coordinationHigher worker morale9) Attributes of a projectA project has a unique purpose.A project is temporary.A project requires resources, often from various areas.A project should have a primary sponsor or customer.A project involves uncertainty.10) Every project is constrained in different ways by itsScope goals: What is the project trying to accomplish?Time goals: How long should it take to complete?Cost goals: What should it cost?11)12) Project ManagerA project manager acts as the single point of contact on the project13) A project manager is the individual responsible for:Planning and organizing the workManaging the day-to-day activities of a projectDelivering the project deliverables to the clientIdentifying potential stakeholders(受项目影响的人)Planning the projectTechnical activitiesProject management activitiesManaging the triple constraint to the Project Sponsor’s satisfaction ScheduleCostScopeOrganizing the project:Forming the project teamSetting up systems to document and communicate the project objectives and statusEstablishing project plans and the processes by which the project will be controlledManaging or directing the project by:Tracking the technical performance of the project schedule and cost Tracking the financial performance of the projectAssessing and managing the project’s RisksDealing with issues and problems that occur during the projectTracking suppliers’ performance against their contractsBuilding and maintaining the morale of the project teamCommunicating with all stakeholdersTracking team member performanceUsing a change control process to manage scope14) Project Stakeholders：Stakeholders are the people involved in or affected by project activities Stakeholders include：The project sponsor（赞助者）and project teamExecutivesCustomersContractors（合约商）Functional managerssupport staffuserssuppliersopponents to the project15) Project Manager's ValueA project manager enhances the probability that a project will:Produce quality productsStay on scheduleComplete within budgetSatisfy the client's requirementsLead to follow-on businessAchieve success16) Project Management Knowledge Areas Classification4 core knowledge areas lead to specific project objectives (scope, time, cost,and quality)4 facilitating knowledge areas are the means through which the project objectivesare achieved (human resources, communication, risk, and procurementmanagement)1 knowledge area (project integration management) affects and is affected byall of the other knowledge areasChapter 5 Time:1) Developed in the 1950’s, Project network diagrams are the preferredtechnique for showing activity sequencing2) The critical path is the longest path through the network diagram andhas the least amount of slack or floatA critical path for a project is the series of activities that determines the earliesttime by which the project can be completedCPM is a project network analysis technique used to predict total project duration3)4)5)Total Float = LS - ES or LF - EFFree Float = ES (Successor) - EF (Predecessor)6)1. Calculate the forward and backward pass2. Calculate the float for each path3. Find the critical path7) PERT(Program Evaluation and Review Technique ) is a networkanalysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity durationestimates.PERT weighted average formula:(optimistic time + 4X most likely time + pessimistic time)/6According to normal distribution, the probability of completing the project within ±σ(ie. Between 47.304 days and 54.696 days) is 68%the probability of completing the project within ±2σ(ie. Between 43.608 days and58.393 days) is 95%the probability of completing the project within ±3σ(ie. Between 39.912 days and62.088 days) is 99%By checking the normal distribution table, you can determine the probability ofcompleting the project within a specific time:For example，if the customer requests to finish the project within 60 days, theprobability is：Chapter 5 cost:1)Project cost management includes the processes required to ensure thatthe project is completed within an approved budget(法定预算)2) Project Cost Management Processes：Resource planning: determining what resources and quantities of them shouldbe usedCost estimating: developing an estimate of the costs and resources needed tocomplete a projectCost budgeting: allocating the overall cost estimate to individual work items toestablish a baseline for measuring performanceCost control: controlling changes to the project budget3) Life cycle costing（寿命周期价格）is estimating the cost of a project plusthe maintenance costs（维修费用）of the products it produces4) Cash flow analysis is determining the estimated annual costs（年成本）and benefits for a project5) Items to Include in an EstimateT he scope of the work that is included in the estimateThe assumptions that were usedResources, such as staff, facilities, and material; consider the durationProject management should be includedExpenses, both direct and indirectRisk and the cost of managing it to acceptable levelsDocumentation, which is critically important6) Keep in mind that the time it takes to complete a task depends on bothavailability and productivity7) Estimating Formulas：Cost = (Effort/Productivity) x Unit CostDuration = (Effort/Productivity)/Availability8) Types of Cost EstimatesROM is a top-down approach used during the formation of the project for initialevaluation and during the concept phaseBudget is developed from more detailed project analysisDefinitive is a bottom-up (task-by-task) approach prepared from well-defineddata and specifications9) One reason for creating a project budget estimate is to provide a basis fortracking and managing project costs; specific tasks within the estimating process are cost estimating and cost budgetingCost estimating - consists of determining the cost of all of the elements neededto complete the projectCost budgeting - is the allocation of the determined cost estimates to individualproject components so that those costs can be measured and managed as theproject is executed10) B arry Boehm helped develop the COCOMO （构造性成本模型）models forestimating software development costs▪COCOMO II is a computerized model available on the Web▪Boehm suggests that only parametric models do not suffer from the limits of human decision-making11) P roject cost control includesmonitoring cost performance（控制成本效益）ensuring that only appropriate project changes are included in a revised costbaselineinforming project stakeholders of authorized changes to the project that will affect costs12) E arned value analysis is an important tool for cost control13) W hat is Earned ValueIt is a way of looking at how much of the expected value of the project has beenearned, at a particular point in time.It provides:A method for measuring project performanceA view of how much work has been done relative to how much was plannedto be done, at a point in timeA view of how much of the budget should have been spent to accomplish thework done so farA view of how what's required to complete the project (cost & schedule) basedon actual performance14) E arned Value Analysis TermsThe planned value (PV),（计划工作预算成本）formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approvedtotal cost estimate planned to be spent on an activity during a given periodActual cost (AC)（已完成工作实际成本）, formerly called actual cost of workperformed (ACWP), is the total of direct and indirect costs incurred inaccomplishing work on an activity during a given periodThe earned value (EV)（完成工作预算成本）, formerly called the budgeted cost of work performed (BCWP), is an estimate of the value of the physical work actually completedSV - Schedule Variance（进度偏差）, SV = EV - PVSPI - Schedule Performance Index（进度绩效指数）, SPI = EV/PVCV - Cost Variance（成本偏差）, CV = EV - ACCPI - Cost Performance Index, CPI = EV/ACBAC – Budget at CompletionEAC - Estimate At CompletionAre we ahead of or behind schedule? (SV)How efficiently are we using our time? (SPI)When is the project likely to be completed? (EAC)Are we under or over our budget? (CV)How efficiently are we using our resources? (CPI)How efficiently must we use our remaining resources? (TCPI)What is the entire project likely to cost? (EAC)How much are we under or over budget? (VAC)What is the remaining work likely to cost? (ETC)BAC: Budget At CompletionSum of all budges (PV). Your original budget.EAC: Estimate At CompletionForecast total cost at completionEAC = ((BAC – EV)/CPI) + AC or BAC/CPIUnfinished work divided by CPI added to sunk costIf CPI < 1, EAC will be > BACCR: Critical RatioSPI x CPI1: everything on track> .9 and < 1.2 okCan be charted▪Negative numbers for cost and schedule variance indicate problems in those areas. The project is costing more than planned or taking longer than planned ▪CPI and SPI less than 100% indicate problemsChapter 7 quantity：1）Project Quality Management processes include all the activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project satisfies the needs for which it was undertaken2）A project quality management system that includes processes such as quality planning, quality assurance, and quality control i s established▪Quality planning: identifying which quality standards are relevant to the project and how to satisfy them▪Quality assurance: evaluating overall project performance to ensure the project will satisfy the relevant quality standards▪Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality3）Quality Control：Some tools and techniques include：▪Pareto analysis✓Pareto analysis involves identifying the vital few contributors that account for the most quality problems in a system✓Also called the 80-20 rule, meaning that 80% of problems are often due to 20% of the causes✓Pareto diagrams are histograms（柱状图）that help identify and prioritize problem areas▪statistical sampling（统计抽样）▪Six Sigma（标准差）目标在于每百万个中有少于4个的错误。