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CMA STUDENTS’ Bulletin · With external economies of scale, the long run average cost curve shifts downward while with external diseconomies of scale, the long run average cost
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Behind every successful business decision, there is always a CMA
Dear Students,
'The future belongs to those who believe in the beauty of their dreams'.
'Everyday do something that will inch you closer you to be a better tomorrow' and do it
now, sometimes 'later' becomes 'never'. Push yourself because no one else is going to do
it for you. Hard work beats talent when talent doesn't work hard. Don't stop when you
are tired. Stop when you are done.
Teach me and I will forget, show me and I will learn, involve me and I will understand- I
believe in the statement, hence, the effort of monthly publication of E-bulletin. Try to
utilise the most of it. You are having Mock Test Papers (MTPs), Revisionary Test Papers
(RTPs) and few more resources will get upload shortly. The Directorate of Studies is always
trying to boost up your energy by providing your preparation related materials and
updates. Please try to grab the maximum benefit out of those. Learned academicians are
putting their efforts by preparing those and you should honour their effort too. I sincerely
acknowledge their effort for providing you a better tomorrow.
Trust yourself and strive your progress; not perfection. Remember that 'No one is perfect
that's why pencils have erasers'. Problems are not stop signs they are guidelines. Thus,
running away from your problems is a race you will never win. In the middle of difficulty,
lies opportunity. Please try to believe in 'The capacity to learn is a gift; the ability to
learn is a skill; the willingness to learn is a choice'.
The difference between ordinary and extra-ordinary is just that little 'extra'. So, stay
positive, work hard and make it happen.
You are already aware that th58 National Cost Convention of your beloved
th thInstitute is going to be held on 16 and 17 March,2018 at Vigyan Bhawan, New
Delhi. It is our collective duty to successfully make the event a mega grand event.
i
Best of luck for your future endeavours,
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
CONTENTS
Knowledge Update -
Message from the Chairman -
Paper: 1, Part: I - Fundamentals of Economics and Management (FEM) - Economics -
Paper: 1, Part: II - Fundamentals of Economics and Management (FEM) - Management -
Paper: 2 - Fundamentals of Accounting (FOA) -
Paper: 3 - Fundamentals of Laws and Ethics (FLE) -
Paper: 4 - Fundamentals of Business Mathematicsand Statistics (FMS) -
Practical Advice -
Message from the Directorate of Studies -
Snapshorts -
Time Management -
Submissions -
1
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2
5
8
13
18
26
24
27
28
29
Behind every successful business decision, there is always a CMA
Behind every successful business decision, there is always a CMA
In this section of e-bulletin we shall have a series of discussion on each of these chapters to provide a meaningful assistance to the students in preparing themselves for the examination at the short end and equip them with sufficient knowledge to deal with real life complications at the long end.
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
KNOWLEDGEKNOWLEDGEKNOWLEDGEUpdateUpdateUpdate
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STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Behind every successful business decision, there is always a CMA
Paper : 1, Part : - IPaper : 1, Part : - I
Fundamentals of Economics & Management (FEM) - EconomicsFundamentals of Economics & Management - (FEM) Economics
Dr. Bibekananda RaychaudhiriProfessor, Guest LecturerDepartment of Commerce / FinanceUniversity of CalcuttaHe can be reached at:[email protected]
Your Preparation Quick Takes
A Fundamentals of Economics 50%B Fundamentals of Management 50%
B 50%
A 50%
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Behind every successful business decision, there is always a CMA
Learning Objectives:
Studying economics, one will be able to develop the analytical skills needed to work successfully in the field, including the study of logical analysis.
Students will be able to identify and explain economic concepts and theories related to the behaviour of economic agents, markets, industry and firm structures, legal institutions, social norms, and government policies.
Students will be able to integrate theoretical knowledge with quantitative and qualitative evidence in order to explain past economic events and to formulate predictions on future ones.
Students will be able to evaluate the consequences of economic activities and institutions for individual and social welfare.
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Study notes 3 and 4 deal with the Theory of production and
Theory of cost. These involve lots of calculation which the
producer has to make in producing his product.
We start with Production function. Production function
expresses the relationship between the physical inputs
and physical output of a firm for a given state of technology.
Why physical amounts of inputs and output are being
related ? Because it is a technical relationship and the
producer needs the help of an engineer or a technical
person. You must have noticed the phrase “for a given state
of technology”. If we relate the value of inputs with the
value of output, price of inputs and price of output will
sneak in and the whole relationship will get blurred.
Because, prices of both the inputs and output will be
fluctuating and the entire picture will be vitiated. We know
that the value is calculated with the help of the following
formula:
value = quantity x price
Now let us take up the phrase ”state of technology”. What
does it mean ? To be precise what is a technique? What is
technology? Is there any difference between technique and
technology?
Technique is defined as the ratio/proportion in which two
inputs/more than two inputs are combined together to
produce one unit of the product. And technology is the
spectrum of all available techniques. For example, capital
(K) and labour(L) are used to produce a product, say X.
K and L are combined in the ratio K:L = 1:2 to produce one
unit of X. Here, K:L = 1:2 will be called the ' Technique' of
producing X. If we know a good number of different
produce 1 unit of X, then all these techniques taken
together will be called 'Technology'.
In the short run, labour is the only variable factor of
production. The production function is represented by the
total product (TP) curve which has three stages of
production. At the end of the first stage, average product
(AP) reaches maximum and the marginal product (MP)
curve cuts the AP curve from above. This means that at the
end of the first stage AP = MP. Second stage starts when AP
starts falling along with a already falling MP which started
falling much earlier. This falling MP is due to the operation
of the law of diminishing marginal productivity ( or, the law
of variable proportions ). So, during the second stage, TP
rises but rises at a diminishing rate. At the end of the
second stage TP reaches maximum and MP becomes nil.
Stage three starts with a falling TP and MP becomes
negative.
In the long run, the production function is represented by
the isoquant map. These isoquants will be subjected to the
laws of returns to scale : increasing returns to scale,
constant returns to scale and decreasing returns to scale.
In the long run, the producer can change the scale of
production which is not possible in the short run. Change
in scale means changing all the inputs in the same
proportion. Increasing returns to scale can be explained by
an example. Suppose, all the inputs are doubled and the
production level is more than doubled, then this situation
is called increasing returns to scale. If the production level
is also doubled along with all the inputs, then the situation
is called constant returns to scale. But if the production
level is less than doubled when all the inputs have been
doubled, the situation is termed as decreasing returns to
scale.
The same laws of returns to scale can be viewed from the
cost side. Increasing returns to scale can be seen as
decreasing cost ; constant returns to scale is the same as
constant cost and decreasing returns to scale is increasing
cost phase of the long run average cost curve. In fact the U-
shape of the average cost curve is due to the operation of
these laws of returns to scale. In other words, when there is
3
ECONOMICS
Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
internal economies of scale we find the long run average
cost is decreasing. This phase of the long run average cost
curve is due to the operation of the increasing returns to
scale. Similarly, when there is internal diseconomies of
scale, we find the long run average cost is increasing. This
phase of the long run average cost curve is due to the
operation of the decreasing returns to scale.
When we move along the same long run average cost
curve, we experience internal economies and internal
diseconomies of scale. With external economies of scale,
the long run average cost curve shifts downward while with
external diseconomies of scale, the long run average cost
curve shift upward.
This long run average cost curve, however, is the
'Envelope' of all possible short run average cost curves.
Each short run average cost curve is attached to a particular
plant size. As the plant size increases, the short run average
cost curve would shift to the right. It indicates that the
producer is now able to produce at a much higher level
because of the fact that he is using a higher plant size. The
short run average cost curve with higher plant size will lie at
a lower level or at the same level or at a higher level
compared to the short run average cost curve with a smaller
plant size, depends on whether the production process is
subjected to increasing returns to scale or constant returns
to scale or decreasing returns to scale.
The U-shape of the short run average cost curve is the
direct effect of the operation of the law of diminishing
marginal productivity. In the short run when the number
of machines are fixed, the marginal productivity of the
variable factor of production, say, labour will be
diminishing after a certain point.
Cost is one side of the coin. The producer is interested in
profit only. In order to calculate profit, the producer needs
information on revenue. Total revenue can be calculated in
two ways:
TR = AR X Q
Or, TR = MR
Where, TR = Total Revenue, AR = Average Revenue, Q =
Output, MR = Marginal Revenue
We will be dealing with two types of market: (1) Perfectly
competitive market and (2) Imperfectly competitive
market.
Under perfect competition, the producer is a price taker
and he cannot influence the market price. Given the market
price, the producer can sell any amount he likes. But if he
tries to quote a higher price, he will not be able to sell a
single unit of the product. In such a situation, the demand
curve for the firm will be a parallel line parallel to the x-
axis, the starting point on the ordinate being the given price
level. Let the given price is Po.
So, AR = TR / Q = (Po x Q) / Q = Po
Again, MR = dTR/dQ = d(Po x Q)/dQ = Po
Therefore, AR = MR
Hence, under perfect competition, the demand curve of the
firm described above will also be the AR curve and the MR
curve, since AR is always equal to MR for the firm.
But this is not the scenario under imperfect competition.
Here, the firm is a price maker. The firm can fix up the price
of his own product. But he cannot however, fix up both the
price and the sale of his product at the same time. If he fixes
the price, the sale will be determined by the demand curve
which is downward sloping. The downward slope of the
demand curve indicates that the producer can change the
market price.
The relationship among the AR, MR and price elasticity of
demand (e) is given by
MR = AR ( 1- 1/e)
Under perfect competition, the price elasticity of demand
(e) is infinity.
Therefore, 1/e = 0. So, MR = AR
But, under imperfect competition, e is positive. Therefore,
1/e is also positive. This indicates that MR is less than AR.
This means that the MR curve will lie below the AR curve
for all levels of output.
Friends, this portion of economic theory is
slightly mathematical. So try to understand
it carefully. Please do not try to mug up. It is
very simple. If possible, try to brush up your
knowledge of the straight line chapter from
any standard book on co-ordinate
geometry. That will be helpful. Enjoy your
reading of the study notes. ‘
‘
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STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Behind every successful business decision, there is always a CMA
Your Preparation Quick Takes
A Fundamentals of Economics 50%B Fundamentals of Management 50%
B 50%
A 50%
Paper : 1, Part : - IIPaper : 1, Part : - II
Fundamentals of Economics & Management (FEM) - ManagementFundamentals of Economics & Management - (FEM) Management
CMA (Dr.) Sumita ChakrabortyJt. Director, StudiesShe can be reached at:[email protected]
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Learning Objectives:
Students will demonstrate their knowledge of business and management principles
Students will reveal effective written and oral communication
Students will exhibit an awareness of the global environment in which businesses operate
Students will display the ability to recognize when change is needed, adapt to change as it occurs, and lead
change
MANAGEMENT
Controlling is the function that is performed utmost carefully by every manager. Control refers to the task of ensuring, that activities are producing the preset targets or goals. Controlling is aimed at monitoring the outcome of activities, reviewing feedback information about this outcome, and if necessary takes corrective action.
Koontz and O'Donnell contend that “Managerial control implies the measurement of accomplishment against the standard, and the correction of deviations to assure attainment of objectives according to plans.”
What to Control?In any organisation or a work unit, managers have to decide in advance the area or points of activity which need to' be controlled —these are to be selected based on their importance in relation to the whole activity and desired results. This leads us to examine two concepts: critical point control and control of exception.
Critical point control: In a simple operating system, all aspects of the activity can be watched and controlled in a close manner. But as a system becomes more complex, it may not be possible or necessary or economical to control each and every aspect of the activities. In such cases controls have to be selective. A few key areas or aspects of the activity and their performance have to be identified and control attention has to be focused on them. In the area of inventory control, ABC analysis is an example of critical point control.
Control by exception: Also known as 'management by exception', the principle is widely practiced by managers in organizations. It means that managers at each level should pay attention to only exceptional and significant deviations from planned results. Only exceptional instances of off-line functioning of the system should deserve managerial attention and remedial action.
Kinds of Control:Three kinds of control systems are used by Modern organisations, namely :
(i) Historical (or) Feedback control (ii) Concurrent control and (iii) Predictive of feed forward cont
Prerequisites of an Effective Control System:Any control system should meet certain requirements in order to be effective, which are indicated below:
(1) There should be a match between the type of function and the system of control at all levels of the organisation.
(2) The control system should be sensitive enough to point out deviations from plans immediately so that corrective action can be initiated with little loss of time and before any damage is caused.
(3) The control system should be flexible and forward looking.
(4) The control system should focus on strategic and key
activity areas or points which are critical to overall
performance.
(5) The control system should enable managers to utilize their time and talent most effectively by concentrating on major or exceptional deviations from plans.
(6) The control system should be formal and objective as far as possible, in fairness to those whose performance is monitored, regulated and evaluated.
(7) The control system should be consistent with the organisational structure. It should be built into the horizontal activity relationships and vertical authority relationships.
(8) Controls are nothing more than means to certain ends. They are not ends in themselves. They should constantly focus on goals to be achieved, on values to be preserved and on interests to be promoted.
(9) The control system should be economical to operate; economy need not however be exercised at the cost of effectiveness.
(10) The control system should give due allowance to factors or variables which cannot be controlled but which affect the performance of people.
(11) The control system should be designed to measure and evaluate the diverse dimensions of performance of individuals and activity areas, giving appropriate weightage to all the relevant variables .
(12) The means adopted to achieve goals should also be kept under watch by the control system, because both means and ends are important.
(13) Finally, the control system should be understandable to those whose performance is sought to be regulated.
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
The requirements of control should be communicated in a simple and straightforward manner to those who are to abide by the system. the organisation and its sub-systems to adapt and adjust their goals and the means of reaching them in turn with the change in the environment i.e., to maintain a sort of dynamic equilibrium.
Principles of Control:The following principles of control summaries the substantive parts of the above discussion on the controlling function:
1. Principals of assurance of objective
2. Principle of future-directed controls
3. Principle of control responsibility
4. Principle of efficiency of control
5. Principle of direct control
6. Principle of reflection of plans
7. Principle of organizational suitability
8. Principle of individuality of controls
9. Principle of standards
10. Principle of critical point control
11. Principle of exception
12. Principle of flexibility of controls
13. Principle of action.
Techniques of control:�Managers use different methods and systems to exercise control of different levels. Now, we will touch upon some of the tools and mechanisms devised by managers and others, over the years to control specific aspects of activity and performance of an enterprise or work units.
“Budgets are formal quantitative statements of the resources allocated for the execution of activities over a given period of time, and include information about projected income, expenditure and profits.”
1. Budgetary control
2. Financial statements
3. Break-even analysis
4. Management Information Systems (MIS)
5. Management audit.
Your Study material contains 'Techniques of Control” in detail. Please read it carefully to score in your examination.
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STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Behind every successful business decision, there is always a CMA
Your Preparation Quick Takes
B 20%
A 80%
A Fundamentals of Financial Accounting 80%
B Fundamental of Accounting 20%
Paper : 2Paper : 2
Fundamentals of Accounting (FOA)Fundamentals of Accounting (FOA)
CMA (Dr.) Nibir GoswamiAssociate Professor in CommerceVidyasagar Mahavidyalaya, W.B.He can be reached at:[email protected]
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Learning Objectives:
In order to internalize the concepts of subjects like accountancy one has to have an understanding of the learning objectives of the chapters. Try to go through the Statement of Objects and Reasons issued for every topics as it would give you a background to your study.
FUNDAMENTALS OF COST AND MANAGEMENT ACCOUNTING
1. INTRODUCTION:
In all past issues we have highlighted almost all the areas
included in the syllabus except preparation of final accounts in
section A which will be discussed in any of the next issue as the
last topic. In this issue we will throw light on the area left in the
section B – Generally Accepted Cost Accounting Principles.
(GACAP) and accounting for material cost (LIFO, FIFO AND
WEIGHTED AVERAGE COST METHOD) GACAP is prepared
by Cost Accounting Standard Board (CASB) of our institute
under the instruction by Ministry of Corporate affairs,
Government of India which will definitely supersede the
concept of cost accounting record rules.
In a nutshell GACAP contains a summary of the cost
accounting principles followed by business entities in India in
preparing and presenting cost information in the context of
general purpose cost statements for statutory reporting and
covered by cost audit. Mainly the costs that are focused under
such principles are – material cost employee cost, direct
expenses, overheads, depreciation, interest and finance
charges etc.
2. ACCOUNTING FOR MATERIAL COST:
Studies show that one rupee as the total cost of product
comprises of sixty four paisa as cost of material. Here lies the
importance of material cost control. Material cost comprises of
Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Learning Objectives:
The central objective of Statistics is to equip students with consequently requisite quantitative skills that they can employ
and build on in flexible ways.
Statistics help to design data collection plans, analyze data appropriately and interpret and draw conclusions from
those analyses.
To provide students with the idea of statistical calculations which promotes the efficient functioning of commerce
and industry;
STATISTICS
In this issue we will discuss Correlation Analysis.
In the last issue we have studied relationship between two variables. Now Correlation analysis gives you a statistical tool which helps you to ascertain the degree to which one variable is LINEARLY related to another. Remember for only linear relationship this correlation analysis offer you help to find out degree of association. For other sorts of relationship between variables this will not. Let us recapitulate the following from January issue:
1. Is there any relationship between the yellow and green box?
2. If there is relationship what is that?
3. How much is the strength of the relationship?
Knowledge of Regression & Correlation answers these questions. Regression gives the answers of the first
two questions and Correlation gives the answer of the last one.
In this issue third question will be our topic of discussion.
Regression line is the equation that relates the two variables mathematically. Regression line showing linear relationship
between two variables is of the form:
Y= a+bX Independent Variable
Dependent Variable
a is called Y axis intercept or Y-intercept or simply intercept, b is the slope of the line. n no of items
a,b are found out by the method of least squares and the required formulae are:
What is to be
estimated?
What has actually
happened?
XY -nXYb= &a=Y - bX22
X -nX
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Correlation analysis is used in conjunction with regression equation to measure how well the regression equation explains the
variation of the dependent variable from estimation. Correlation itself can also be used to measure the degree of association
between two variables.
Under Correlation analysis two measures are there:
Coefficient of Determination:
The coefficient of determination is the primary way we can measure the extent or strength of the association that exists between
two variables X (Independent Variable) and Y (Dependent Variable).
Coefficient of determination is indicated as
Direct and short cut formula for are as follows:
= Variation of the Y values around the regression Line
= Variation of the Y values around their own means.
a = Y intercept.
b = Regression coefficient.
= Mean of the observed values of dependent variable.
n = Number of data points.
X = Independent variable.
Y = Dependent variable.
Illustration: The environmental protection agency is conducting a study of the relationship between age and systolic blood
pressure. A small subset of the huge data base is given below:
Find out Coefficient of determination.
Answer:
We know regression equation: Y = a+bX
Where
Coefficient of
Correlation
Coefficient of
Determination
2r
2r
Direct Indirect
2(Y - Y)2
r =1- 2(Y - Y)
2a Y+b XY -nY2
r = 22Y -nY
2
(Y - Y )
2
(Y - Y )
Y
X (Age) 30 55 60 45 40 65 50 75
Y (Blood
Pressure)
120 160 170 180 130 140 150 180
XY -nX Yb= &a=Y - bX22
X -nX
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
This means that the variation in age explains 34.1 percent of the variation in the Blood pressure.
The coefficient of correlation is the second measure that we can use to describe how well one variable is explained by another.
Sample coefficient of correlation is denoted by:
In guide book few methods for finding out r are discussed. Here we will do recapitulation on Karl Pearson's method or
(X-X)( Y - Y)r= ...............................(1)
2 2(X-X) (Y - Y )
(X-X)( Y - Y )r= ...........................................(2)
Nσ σx y
2 2(X-X) ( Y - Y )
Whereσ = andσ =x yN N
(X-X)(Y - Y )iscalledco - variance between X& Y.σ &x
N
� arestandarddeviationofseriesXandY.y
( X)( Y)XY -
Nr= .................................(3)2 2
( X) ( Y)2 2X - Y -
N N
21
y
Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Illustration: Calculate the Correlation Coefficient between the height of father and son from the given data
Ans:
Height of father (In inches) 64 65 66 67 68 69 70
Height of son (Inches) 66 67 65 68 70 68 72
X Y X - Y -
64656667686970
66676568706872
-3-2-10123
-2-1-30204
62302012
9410149
41904016
469 476 25 28 34
X Y (X-X) ( Y - Y ) 2(X-X)
2(Y - Y )
(X-X) ( Y - Y ) 25r= = =0.81
2 2 (28×34)(X-X) ( Y - Y )
(X-X) ( Y - Y ) 25 25r= = = = 0.81
2 2Nσ σy 28 34(X-X) ( Y - Y )x 777 7N N
X Y XY
64656667686970
66676568706872
4224435542904556476046925040
409642254356448946244761
4900
4356448942254624490046245184
469 476 31917 31451 32402
2X
2Y
(469) (476)( X) ( Y)31917-XY -
7Nr= =2 2 2 2
( X) ( Y) (469) (476)2 2X - Y - 31451- 32402-
N N 7 7
25= = 0.81
28 34
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
The sign of r indicate the direction of the relationship between the two variables X and Y. If an inverse relationship exists –
that is, if Y decreases as X increases – then r will fall between 0 to 1.
Suggestions:
This study note need to be read thoroughly. Supplementary readings could be made from other resources. This issue is based onStatistics for Management by Richard I Levin & Statistics- Theory, Methods & Application by Sancheti& Kapoor. Attempts here are made to discuss the topic as an aid to the guidance already given in the study guide. This writing is for updating knowledge and could be used as supplement to the study guide. Examples on objective parts on this regression part as well as on Correlation partalong with further discussions on interpretation on different coefficients will be made in next issue.Students should go thoroughly for clear conception on the subject Guide book on the paper 4- Fundamental of Business mathematics and Statistics written and issued by Institute on Syllabus -16.
“
“
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STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Behind every successful business decision, there is always a CMA
01.0 The Benevolent Bank
Imagine there is a bank that credits your account every
morning with Rs. 86,400/- for consumption during the day.
The basic fundamental is that the bank does not carry
forward any balance from day to day. Hence, at the end of
every evening the bank forfeits the unutilized balance. What
would you do? Draw out every rupee and use it before the
dusk, of course.
Each of one of us has such a generous bank that credits our
account every morning with 86,400 seconds (1,440 minutes
or 24 hours). Every evening it does forfeit the balance of
TIME that can't be used during the day. If you fail to use the
day's credits, it is your loss forever. There is no going back.
There is no drawing against the “tomorrow”. You must live
in the present on today's credits.
02.00 Time Management
Yesterday is history. Tomorrow is mystery. Today is a gift.
That is why it is called the present! Put this valuable gift –
called time - to prudent utilization. The technique that is
handy in this context is popularly known as Time
Management.
“Time management” is the process of organizing and
planning how to divide your time between specific
activities. Good time management enables you to work
smarter – not harder – so that you get more work done in
less time, even when time is tight and pressures are high.
Failing to manage your time damages your effectiveness
and causes stress.
It seems that there is never enough time in the day. But,
since we all get the same 24 hours, why is it that some
people achieve so much more with their time than others?
The answer lies in good time management.
03.00 Tools & Techniques
Time and Tide wait for none. Time and Tide wait for none.
There are several Time Management Tools & Techniques
that are handy for Prudent Utilization of Time. Some of the
important techniques are listed below:
1. Analyze the value of each of the activities in your
time chain and eliminate the activities that do not
add to the value
2. Prioritize the Tasks
3. Create Time Goals and adopt a 'To Do List'
4. Review, Revise and Reset the Task List
5. Learn to delegate and monitor
6. Stick to the Time Plan
04.00 Benefits
Benefits from good time management are enormous such
as:
Greater Productivity
Better Efficiency
Higher Credibility
Less Stress
Easier Goals
Enhanced Opportunities
05.00 A Demonstration
Here is a revealing demonstration by a professor that I came
across on Time Management and Priority Setting. When the
class began, the professor picked up a large empty jar and
proceeded to fill it with rocks of about 2" diameter right to
the top. He then asked the students if the jar was full? The
students agreed that it was. The professor then picked up a
…. Time Management ….…. Time Management ….…. Time Management ….
CMA (Dr.) Sreehari ChavaCost & Management Consultant,Nagpur, Maharastra.He can be reached at:[email protected]
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STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
VOL: 3, No.: 2
Behind every successful business decision, there is always a CMA
box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas and settled down
between the rocks. The students laughed. The professor asked his students again if the jar was full? They agreed that yes, it was.
The professor then picked up a box of sand and poured it into the jar. The sand filled up the gaps and everything else that is empty.
The students were amazed.
"Now," explained the professor, "I want you to recognize that this is your life. The rocks are the important things like your family,
your health, - anything that is so important to you that if it were lost, you would be nearly destroyed. The pebbles are the other
things in life that do matter, but on a smaller scale. The pebbles represent things like your job, house, or car. The sand is
everything else, the small stuff. Remember that if you put the sand or the pebbles into the jar first, there is no room for the rocks.
The same holds true for your life as well. If you spend all your energy and time on the small stuff and the material things, you will
never have room for the things that are truly important. Pay attention to the things that are more important in your life and spend
more time on them.”
06.00 Quick Take
Good time management requires an important shift in focus from activities to results. Being busy isn't the same as being
effective!
If opportunity doesn’t knock build a door.If opportunity doesn’t knock build a door.
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
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PRACTICALPRACTICALPRACTICALAdviceAdviceAdvice
Prac�cal support, informa�on and advice to help youget the most out of your studies.
ABOUT YOUR STUDIES - FOUNDATION COURSE
Assess Yourself
Appear For Examination
Solve Excercises given in Study Note
Read The Tips
Read Study Notes MTPs & RTPs
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
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Behind every successful business decision, there is always a CMA
STUDENTS’ E-bulletin FEBRUARY 2018, ISSUE Foundation
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CMA Sanjay Gupta, President of the Institute during a discussion with Mr. Jeffrey C. Thomson, President and CEO of Institute of Management Accountants [IMA] on 25th January, 2018 at CMA Bhavan, New
Delhi.
SNAPSHOTS
CMA Sanjay Gupta, President, The Institute of Cost Accountants of India extending New Year greetings with Shri
Suresh Chandra, Secretary to the Government of India, Ministry of Law & Justice.
CMA Sanjay Gupta, President of the Institute welcomes Mr. Jeffrey C. Thomson, President and CEO of Institute of
Management Accountants [IMA] on 25th January, 2018 at CMA Bhavan, New Delhi.
National seminar on GST-Jointly Organized by the Institute & Bhubaneswar Chapter, dated 27th & 28th January 2018 at Bhubaneswar, Odisha.
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THE INSTITUTE OF COST ACCOUNTANTS OF INDIA(Statutory body under an Act of Parliament)