Case Study Essay Example | Topics and Well Written Essays - 500 words - 28

Case Study - Essay Example 3. The amount deducted each year towards depreciation on the machine is the income source from which the cost of lease is recovered. Therefore, the term of lease is equal to the period in which the value of the machine becomes zero. Minimum lease payment made on each due date is inclusive of principal as well as interest. Interest, is calculated, with respect to the diminishing balance of debt, at the same fixed rate as that at which minimum lease payment was discounted. Expenditure incurred under such costs as insurance, maintenance and taxes is shown under appropriate head in accrual or deferral accounts. In the balance sheet, the asset figures as a fixed asset with a title like ‘Leased Equipment under Capital Lease’. An equivalent liability, by way of the amount paid towards lease, is projected with a title like ‘Lease Liability’. Amount paid on the principal in the following year falls under the current part of the liability and the rest under the non-current part. 4. The present value of liability should eventually equal the aggregate of minimum lease payments projected by the lessee in the balance sheets during the following five (or less as the case may be) financial years from the time the lease agreement is enforced. 1. For Breton, the lessor, the lease arrangement is of direct financing nature. In the transaction, there is no mention of any such thing as dealer’s profit or manufacturer’s profit. Discounted present value of minimum lease payment is more than 90 per cent of the asset value at the time of commencement of lease. No problems are predicted in connection with the collectability of minimum lease payments. Nor are there any dead costs deemed to have to be borne by the lessor. 2. It is mandatory for Breton, the lessor, to document a ‘Lease Receivable’. The present value of minimum lease payments as well as the present

Risk and Quality Management Essay Example | Topics and Well Written Essays - 3000 words

Risk and Quality Management - Essay Example ..†¦13 8.0 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 9.0 Introduction By definition and ISO 9000:2005 recognition, quality is the degree to which a set of variables has the ability to meet the required standards. Risk can be simply defined as the possibility of failure. The Risk management is the continuous process of identifying, prioritizing and eliminating potential sources of failure to reach preset objectives. Operational risks that risk managers seek to minimize eliminate or control is enterprise risk, project risks and process risks. (Perkins, 2011) Literature Review; project and quality management Project management processes and quality management processes are correlated. ... Quality management comes in to ensure that the project management process is successful. In quality management, the value of output against the set standard is key. Time taken to deliver the output is kept in mind when quality management is done. The two processes, therefore, marry and work as one in the realization on organizational goals. (Greenberg, 2012) Tools and strategies used In total quality management, some common tools are used. These tools are grouped into categories. The categories alongside their tools include the following basics. Quality tools such as histograms, Pareto charts, fish bone, flow chart, scatter diagrams, control charts and check points. These are used to explain the relationships between two decision variables. In project planning and implementation, they are used to determine which project to invest in. the determining factors are the cash inflows and outflows and the gestation periods of the project. (Wiley, 2006 p 72) The use of histograms diagrammati cally shows the comparison of cash flows and benefits of projects. In risk and quality management, they are useful since they allow the representation of large volumes of data. From a glance, one can tell the frequency and variation of the represented data. In this case, the project planners can tell the future trend of their venture. The data values that are to be measured is collected and tabularize. The minimum values per item, say, output per hour of product A to G is 100. Statistical values on each variable are made. These are the mean, standard deviation, minimum, maximum, skewness, kurtosis, class width and number of classes. These statistics are used to compare the