Korea Auto Insurance Company Essay Example

Korea Auto Insurance Company Essay Example Korea Auto Insurance Company Essay Korea Auto Insurance Company Essay Headquaters Overhead Cost Allocation at Korea Auto Insurance Co. Inc. Korea Auto Insurance Co. Inc. For periods 2007 thru 2008 Question 1 Net Income, revenue, direct, and indirect costs using current method / Net Income, revenue, direct, and indirect costs using cost drivers. Question 2 Do you agree Kims performance in 2008 would now be evaluated more properly? Question 3 Which cost drivers make the biggest differences between net incomes? Do these cost drives have anything to do with Kims efforts in 2008? The largest difference when comparing the current allocation method and the activity-based costing method is the Operations Support. The new method takes into account the affect in the reduction of employees that Kim instituted. In this case sales training and employee based activity | |costs have been reduced at the Tajeon Branch in direct relation to the number of employees rather than the revenue generated. This way the branch| |is not penalized for the efficiency of less employees. Question 4 The ABC method matches specific reasonable cost drivers with corresponding overhead costs. Discuss why the ABC method would reward a manager with higher motivation in a competitive market. Also, discuss the shortcomings of the ABC method at the level of the entire organization. The ABC method would reward a manager with higher motivation in a competitive market because the way the ABC method is constructed where it can properly estimate the costs that are associated with products and services provided by the company. In Kim’s case the ABC method can identify the resources and support that the Taejon branch uses; and then in turn the Taejon branch can provide a justifiable reasoning on why the allocation of the overhead costs is not properly correlated to the use of the resources that the headquarters assigns to the Taejon branch. Kim is cost conscious and motivated to improve the company. In his tenure at the Taejon branch Kim implemented a two-fold cost reduction method in the cost of handling traffic accident cases, which, is the company’s largest proportion of the total overhead cost. First Kim used public relations and campaigns throughout the year to prevent customers from being involved in accidents. Second Kim also tried minimizing the number of high-risk drivers that his branch handles through de-marketing. All of Kim’s efforts lowered the number of accidents in the Taejon branch from 54 cases to 31 cases in one year. This is a reduction from Taejon’s customers being responsible for 11% of the accident cases in 2007, to less than 6% of the accident cases in 2008; where the overall accident cases for the company as a whole rose in 2008. Kim was also able to add value to the company. Kim was able to reorganize and analyze the Taejon branch, and as a result he was able to reduce his employee count from 82 down to 45 a year after taking charge. This reduction in employees directly correlates to the cost of employee training conducted by the IT team, the cost of sales training by the OS team, less payroll cost, less performance evaluation cost, and education of those employees. The shortcomings of the ABC method when applied to the entire organization can show signs of inefficiencies, thus can hinder a large organization such as the Korea Insurance group. The added cost of tracking the data for costs can really hurt a large organization since every activity that brings cost and revenue would have to be accounted for. In a smaller branch such as Kim’s Taejon branch, on a micro scale keeping a book of all transactions is simple because the amounts of transactions are low. At headquarters to apply cost analysis to support can be very complex and require a lot of man power to input data into automated cost programs and can be very time consuming if each cost detail is taken into account. It will also be very difficult to understand what cost goes where.

Wireless Communications Essays - Wireless Networking, Free Essays

Wireless Communications Essays - Wireless Networking, Free Essays Wireless communications INTRODUCTION Wireless communications are becoming increasingly popular in today?s fast paced world. Mobility, portability, and instant access (via the Internet) to unlimited information have become the mantra of businesses and individuals alike. The evolution of wireless communications has been incredibly quick and the future of this technology is unlimited. The impact of this technology on our lives will be tremendous and allow us to do things we never imagined. What Is Wireless Communication? The two main wireless services in use today are cellular and private packet radio. The service that is chosen will depend on the application(s) that a company or individual wants to run. Cellular Cellular technology is commonplace in both the business and private sector. There are two types of cellular technology: 1) circuit-switched cellular, and 2) Cellular Digital Packet Data (CDPD). One of circuit-switched cellular?s biggest advantages is its nationwide availability. Another advantage is the ability to send voice and data over the cellular phone network. Circuit-switched cellular is ideal if the application requires the exchange of long text messages, large files, or faxes because it typically charges by the minute of connect time, not by the number of bytes transferred. A practical application for this technology is the transfer of data from a laptop by means of a cellular modem and phone. The initial cost to outfit a laptop to connect to a cellular network is about $400. A disadvantage of this type of service is the long set-up time each connection requires (about 30 seconds). Cellular Digital Packet Data is best suited for transaction processing and database queries. This service offers fast call setup (about 5 seconds), and is inexpensive for short messages, such as sending e-mail. The main disadvantages of CDPD are the expense of large file transfers, and the limited availability of the service (currently it is available in about 40 cities nationwide). Private Packet Radio Private packet radio, though not as common as cellular, offers businesses widespread connectivity. The two major private packet radio providers in the U.S. are Ardis and RAM Mobile Data. These services can be connected to from virtually anywhere in the country. Private packet radio offers quick call setup and is well suited to communications that generate short, bursty messages, such as e-mail, database queries and point of sale applications. Since private package radio has been around for several years, there are many applications that use the network. Some of the commercial applications being used handle messaging, scheduling, electronic filing of expense reports, and even allow for insurance agents to process accident claim forms from a customer?s house or office (Salamone 96). The disadvantage with private packet radio, like CDPD, is that it is expensive for large file transfers. The fundamental problem that wireless communications faces is that none of the major wireless data services is ideal for all applications. The stumbling blocks to widespread adoption of data connections for laptops and personal digital assistants (PDAs) include the lack of compatibility between services, the cost of the services, and the size and price of wireless modems. History of Wireless Communications Radio telephones have been used for decades, but have not been widely available due to limited system capacity. The breakthrough that addressed this capacity problem was the development of the cellular concept, which allows frequency reuse. Needless to say, the use of wireless communications has increased exponentially since that breakthrough. The evolution of wireless systems can be divided into several stages: 1) the preprevailing stage, 2) the first generation analog system, 3) the second generation digital system, and 4) the third generation system (to be discussed later). The promised services, the required technologies, and the developmental timetable are summarized in Table 1 (see appendix A). Preprevailing Stage The preprevailing stage occured during the 1950?s and the 1960?s. Land Mobile Radio systems such as police communication and taxi dispatch systems were developed. Navigation radio for ship and aircraft, and portable radio telephone for the battlefield were other applications. The sending and receiving equipment was bulky and expensive in this early stage of development. First Generation System The first generation wireless system is based on analog technology and was developed in the 1970?s and 1980?s for public use. The price of the hardware was reduced

Financial n accounting Essay Example | Topics and Well Written Essays - 1500 words

Financial n accounting - Essay Example In past, these systems include manual processes but now due to technology advancement the accounting information system changed into Computerized Accounting Information System. Improvement in technology have replaced manual accounting system with computerizes ones. As computers become faster, less expensive, and easier to use; all organizations are using computers in their day to day business. With the help of computers, companies can now capture, process, store, and transmit data. It controls the topics which are related to organization’s economic- financial area. It helps in decision-making process, performance evaluation, facilitating company’s transaction and in internal controls through computerized accounting information system. It combines concepts and accounting principles to record, process, analyse the financial information and then produce it to its end users for the purpose of making economic decisions. Firm’s performance can be improved, through oper ational efficiency and increased profitability (Fowzia and Nasrin, 2011, p.1). Software tools in the Computerized Accounting Information System (CAIS) Accounting software This software consists of basic accounting functions like input, processing and output. There are two types of accounting software i.e. low-end software and high-end software. Personal computer based accounting system enable companies to provide better and timely information. Income tax Currently tax preparation software is available for companies. So, even in a short period of time complex calculations can be done. Audit Trial balance software helps auditors to handle different types of adjusting entries, to input the working trial balance and mechanically compute the adjusted trial balance. Word processing Word processing software is used by the accountants to prepare reports, memos, billings and financial statement. Graphics software It is used by the managerial accountants and auditors to graph the data in repo rts and financial statements. Image processing It captures electronic image of data so that it can be stored and shared. Accountants can process all the electronically by just scanning the paper documents in computer. Electronic data interchange A company can exchange documents electronically with other company with the help of electronic data interchange. Electronic funds transfer It enables companies to make collections and payment electronically. So, if companies are in a view to pay for accounts payable to a supplier, it can do it with the help of electronic fund transfer. Purpose of Computerized Accounting Information System Computerized accounting information system (CAIS) can be single programs or even part of a larger system like enterprise resource planning. The purpose of the system is to reduce manual steps in accounting process and offer automated activities in order to improve reporting. Every function plays a minor part in accounting information system. Individual func tions include accounts receivable, accounts payable, fixed assets, payroll, general accounting and cash management. CAIS often have modules that enable accountants to handle financial information related to their accounting tasks. Use of CAIS in the functioning of Organization CAIS saves time, reduce errors and eliminate waste by adopting