Thoma Hobbes

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The Leviathan is a classic of English literature which is noteworthy of containing a rational construction of natural law as the basis of positive law. In preference to common law; it provides a representative theory of absolute authority. Thomas Hobbes culminates a systematic trilogy on physical bodies, human nature, and body politic. He never departed from the concept of philosophy which he defined as the knowledge acquired by reasoning from the manner of the generation of any thing to the properties or from the properties to some possible way of generation of the same; to be able to produce as far as matter and human force permit, such effects as human life requires. The leviathan expounded the religious doctrine of a holy commonwealth in terms of revelation of divine law. The image depicting Hobbes¡¦s leviathan is of a huge man, whose body is composed of thousands of smaller people, all towering above a well ordered city below. This represents an all powerful sovereign who represents the people and is in a sense the embodiment of their being. The natural philosopher, Thomas Hobbes lived during some of the most tumultuous times in European history -- consequently, it is no surprise that his theories were thoroughly pessimistic regarding human nature. In The Leviathan, Thomas Hobbes asserts that the ideal form of government is composed of an omnipotent Sovereign, whose only innate responsibility to his subjects is to prevent civil war, which Hobbes feels is the natural state in which man would live without government. The Sovereign, he claims, is appointed by the people of a nation as their agent to maintain domestic order.

Man is not naturally good, Hobbes claimed, but naturally a selfish hedonist -- of the voluntary acts of every man, the object is some good to himself. As human motives were, in their natural state, guided by unenlightened self-interest, these could, if left unchecked, have highly destructive consequences. Left unrestrained, humans, propelled by their internal dynamics, would crash against each other. Hobbes tried to envision what society would be like in a state of nature -- before any civil state or rule of law. His conclusion was dispiriting life would be solitary, poor, nasty, brutish and short, a war of every man against every man. Nonetheless, as all people are equal in a physical not a moral sense, possessing a passionate love of survival and some degree of rationality, Hobbes concluded that a viable, working society would arise as equilibrium between these competing forces. The logic is simple. Any persons right of nature justifies violence against everybody else. Consequently, in the interests of personal survival, people will come around to agreeing that they should renounce their right to use violence. However, this yields up a tense and unstable equilibrium. The moment one party deviates from their promise, all will deviate and war restarts.To keep society going with peace and confidence, then an artifice -- a Leviathan -- must be worked into the social contract. This Leviathan is the State -- whether in the form of an absolute monarch or a democratic parliament, it does not matter. The important point is that the State will be given a monopoly on violence and absolute authority. In return, the State promises to exercise its absolute power to maintain a state of peace by punishing deviants. Realizing that its power depends wholly on the willingness of the citizens to surrender theirs, the State itself will have an incentive not to abuse it. Of course, there is no guarantee that it wont. But when it does, it must brace itself for the consequences. . Unfortunately, most leaders, particularly African leaders, are misusing the power of the sovereign and do not want to embrace its consequences. The Leviathan states, The first branch of the general rule of reason containeth the first, and Fundamental Law of Nature; which is, to seek Peace, and follow it. The Second, the Right of Nature; which is, by all means we can, to defend our selves¡¨. Encompassed in these two basic rights is Hobbess entire argument for the institution of a sovereign ruler, which is firstly to protect a nations citizens from all other citizens, and secondly to protect the nation from all other nations. If peace cannot be achieved by stagnation, then the duty of the sovereign, and by contract the only duty of the sovereign, is to mobilize his subjects and declare war on any nation that poses a threat to the stability of his own. One of the interesting elements of Hobbess story is that concepts like morality, liberty, justice and property, have no natural, intrinsic or eternal meaning. They are pure social constructions. They are generated and imposed by the Leviathan, through his laws and institutions, to keep war and social disorder at bay. As history has shown, no set of values will last forever but will evolve as circumstances change. Hobbes is particularly keen to note that law itself is completely dependent on power. A law without a credible and powerful authority behind it is just simply not a law in any meaningful sense. Hobbes is thus one of the progenitors of legal positivism, that is, justice is whatever the law says it is. For Hobbes, power legitimates, power is justice. The State -- whatever its form -- is always, by definition, right, as long as it is capable of maintaining civil peace. Generally regarded as one of the most prominent natural law philosophers of the 17th Century, Hobbes had an enormous impact on subsequent British political, social and economic theory. Naturally, his idea of a social equilibrium between contradictory self-interests is strikingly obvious in the various aspects of economics to the modern day especially in Jeremy Bentham¡¦s utilitarianism where he expresses the Hobbesian hedonism_ ¡§Nature has placed mankind under the governance of two sovereign masters, pain and pleasure. It is for them alone to point out what we ought to do as well as to determine what we shall do. On the one hand, the standard of right and wrong, on the other, the chain of causes and effects are fastened to their throne.¡¨ (Bentham,1780).

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In concordance to Hobbes¡¦s views on the state of nature, the social contract and absolute government, sovereignty is the basis for a stable political regime of law and order and as to the whole doctrine, I see not yet, but the principles of it are true and proper. For I ground the civil right of sovereigns, and both the duty and liberty of subjects, upon the known natural inclinations of mankind, and upon the articles of the law of nature; of which no man, that pretends but reason enough to govern his private family, ought to be ignorant. The leviathan is the most complete expression of Hobbess philosophy. It begins with a clearly materialistic account of human nature and knowledge, a rigidly deterministic account of human volition, and a pessimistic vision of the consequently natural state of human beings in perpetual struggle against each other. It is to escape this grim fate, Hobbes argued, that we form the commonwealth, surrendering our individual powers to the authority of an absolute sovereign. For Hobbes, then, individual obedience to even an arbitrary government is necessary in order to forestall the greater evil of an endless state of war. Reference/ Bibliography„X The Leviathan by Thomas Hobbes with an introducton by Herbert W. Schneider„X Philosophy-The classics byNigel Warburton.„X Lecture eight notes„X http//www.thomas-hobbes.com/„X http//www.philosophypages.com/ph/hobb.htm„X http//www.epistemelinks.com/ Please note that this sample paper on Thoma Hobbes is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Thoma Hobbes, we are here to assist you. Your

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Human Cloning: Right or Wrong?

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Human cloning is a major topic of discussion for scientists these days. The question is whether it is right or wrong to do. For example it could be right by saving lives and medical advances, but it could be wrong because they are playing god. It is a major controversy that governments have been fighting back. It is about whether it should or should not clone ourselves, also it is about what is wrong with cloning humans.

Ever since the first animals were successfully cloned, people wondered if humans could too be cloned. But, doing this brought up a question of whether this should be allowed or not. Since creating humans is up to God to do, many believe that it should leave it to God. One positive thing about human cloning is it makes it possible for infertile parents to have a child. It adds to making a step towards a disability free living. By having a disability free living this means that they will not have diabetes, Parkinson's disease, joint disease, heart failure.... By all of this happening it could change the person's, if it could even be called a person, genetic code for the rest of its future generations. Human cloning could be beneficial to the existence of human beings on Earth. It could even prolong the average life span of human beings.

Cloning can use embryonic stem cells which can be grown to produce organs to repair or replace the damaged organs. If this is done it will further contribute to people's lives. In cases like children born with an arm or leg all that would have to be done is have a scientist to grow that arm or leg that is needed. But, the main idea of human cloning is not just to clone body parts but to clone a whole human being (Drlica 41).

The idea of cloning an entire human causes conflicts between the

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Government, human rights activists, and scientists. All three groups have

different opinions on the subject matter. Scientists believe it is the answer to

many medical problems but it still needs to be researched more thoroughly.

Human rights activists believe it is wrong cause it should leave the making

of humans up to God. The United States Government banned human

cloning and said, "Four states- California, Louisiana, Michigan and Rhode

Island- have already banned cloning (Gibbs 57). Also Congress and

President Clinton had decided to ban the use of federal funds after other

countries tried human clone experiments and had gone wrong (Responses

58). One scientist by the name of Dr. Liam Donaldson said, "It offers

enormous potential for new treatment for chronic disease and injury and the

relief of human suffering" (British 1). But, scientists now just want to have

the authorization to be able to research it and see what they can find out.

But, everyone gets it mixed up and thinks that they are going to produce a

human clone the second they are authorized, but that is not the case because

it may take many years to produce a human clone. If they ever do make a

human clone it will raise many ethical questions (Cole-Turner 59).

By creating a human clone it is like playing God. Many people

believe stem cell research should stopped because they believe that it is up to

God to make these decisions of life and not to scientists. One man said,

"Yes, cloning of human beings does raise serious ethical issues, but those

issues are best addressed by individuals, doctors, and scientists -- not

politicians" (British 1, 2). There are all different opinions.

People say the politicians are playing god because they are not letting the

scientists do their job and try and create more human lives. While other

people say that the scientists are playing God and that they should leave it

alone. "The thought of even trying to create a human being from start just

seems very unethical to me" (Faces 6). Human cloning should be left to

God because of all the negative effects that can happen.

Human cloning will have side effects just like all the other types of

clones. Even though humans have not been cloned yet there have been

animal clones and that gives us an example of what some problems could be.

Some of the side effects of clones are: heart defects, lung problems,

immune system problems, but most important is that the problems are

unpredictable. Out of all the attempts of cloning animals only

three percent of the attempts were successful (Lampman 1). If there were

human clones the life span would probably be really short or long.

The life span of human clones is unknown to scientists. Human

clones would either have a really short life due to side effects, which are

likely to happen, or would be really long due to picking good genes. But,

because of all the experiments on animal cloning and only three percent of

those were successful the odds of having a successful human clone would be

very slim. Nobody has any real scientific data that would show the life span

of a human clone because there have been no human clones.

Many women and men are looking into human cloning because they

are infertile. But, the problem is that the U.S. congress is considering human

cloning for reproductive purposes to be a criminal act (Lampman 1). They

will have to wait a while if they want to have their child by cloning.

Another way to have a child is by vitro-fertilization, which allows the ability

to start a life outside of the womb (British 2).

Creating a human clone would have many birth defects because of all

the genes. There are over 30,000 genes in a body. There is no way they

could test over 30,000 genes. There would probably be mutations and such

in the genetic code of the body. There is a high risk of change in the genetic

code (Drlica 147).

In conclusion there should not be human clones until further research

is done on the subject. Before scientists start making human clones

scientists should get the success rate of animal clones up much more than

three percent. It could be beneficial but it will take a lot of research

and testing. Human cloning may be playing god but eventually someone

will make a human clone, whether it is in a year or one hundred years. Works Cited

Gibbs, Nancy. "Cloning: Where Do You Draw the Line?" Time 13

Feb. 2001: 18-21

Gorman, Christine. "Cloning: Humans May Have It Easier." Time 27

Feb. 2001: 56-57

Lampman, Jane. "Transcript of our live event with Jane Lampman."

Yahoo.

http://www.csmonitor.com/monitortalk/events/pastevents/0628chatLo

g.html (6 Nov. 2001).

"British Government Panel Approves Human Cloning for Cell Research."

Yahoo.

http://www.cnn.com/2000/HEALTH/08/16/embryo.cloning.02/

(6 Nov. 2001).

Cole-Turner, Ronald. Human Cloning: Religious Responses. Los Angeles:

Westminister John Knox Press, 1997.

Drlica, Karl. Understanding DNA and Gene Cloning. New York: Jon

Wiley & Sons inc, 1984.

Gibbs, Nancy. "Baby It's You! And You, And You…" Time 19 February

2001: 46-57.

Goodman, Steve. "Should There Be Human Clones?" Faces: People, Places,

and ures. 16 January 2000: 6-11.

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How concentration affects rate of reaction

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IntroductionA chemical reaction is a process by which one or more substances called reactants changes into or more other substances, called products. Reactions occur at different speeds, they have different rates of reaction.There are two ways to judge how fast a reaction takes place. Rate of reaction is the rate of disappearance of a reactant or the rate of appearance of a product. In the case of our investigation, one of the products we get reacting hydrochloric acid with marble chips is carbon dioxide, that is what we are going to measure to see what is the rate of this reaction.Knowing rates of reaction is especially important for manufacturers, in industry a slow reaction means less production and that means less money. On the contrary, if the reaction is quick, there is more product and that means more money. Chemical engineers must understand the factors affecting rate of reaction and use them to make the product form more quickly.

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There are different factors that affect the rate of reaction• The temperature of the solution is higher• The solid is in smaller particles (surface area)• The solution is more concentratedConcentration Concentration effects the rate of a reaction because the higher the concentration of particles the greater the chance of a successful collision. The general trend for the concentration is the rate doubles as the concentration doubles (they are directly proportional) PredictionI predict that as the concentration of hydrochloric increases, the amount of carbon dioxide given out will increase and the time taken for a certain amount of it to be produced will be less.I think this because the higher the concentration of the hydrochloric acid is, the higher the chance of the bonds breaking because the stronger the hydrochloric acid is the more energy the molecules have so they travel with more force which means the bonds break. If the molecules do not have much energy they will just bounce of the bonds harmlessly. The energy is needed to break the bonds and get the reaction started. Particles in a material don't all have the same amount of energy, most have roughly an average amount while some have more or less than the average. This is illustrated graphically below with a Maxwell-Boltzmann Distribution In the diagram, the number of particles capable of reacting at low concentration is represented by the light brown area, while at a higher concentration the number of particles capable of reacting is represented by both the light and dark brown areas. If the number of particles capable of reacting is higher, the rate of reaction will be greater. According to the collision theory, the more and harder the particles in a reaction collide the faster the rate of reaction. More concentrated acid has more acid per cubic centimetres, so acid particles will collide with the marble chips more often. Since the particles are rapidly moving around this means that there will be a greater number of collisions every second.Apparatus• Marble chips• Thermometer• 100cm beaker• pestle and mortar • different concentrated hydrochloric acids(0.5 .0)• stopclockPlanI am planning to investigate how rate of reaction between hydrochloric acid and marble chips (Calcium carbonate (CaCO)) is affected by increasing the concentration of acid. CO is produced as product of this reaction. Therefore, the rate of reaction can be measured by collecting and measuring the volume of gas given. We will do this by reacting marble chips with different concentration of acid and collecting the gas given off in a gas syringe.To carry out the investigation I must keep the same the temperature because if it increases the kinetic energy also increases makin the rate of reaction increase. We must also not stir it because if not kinetic energy will increase. The surface of the marble chips must also be kept the same because an increase in surface area makes volume increase, if there is less solid for reactant to penetrate; there is a large surface to work on causing an increase in reaction.As we are planning to investigate how rate of reaction is affected by increasing the concentration of acid, we must change the concentration of HCL acid and record the results given. The concentration will be changed every 10-15 minutes, after the results are recorded. We must measure the volume of CO given out at regular interval. To measure it we are going to use a glass syringe to collect it inside. Like this the results recorded will be exact so the risk of a mistake because of human error decreases.My test will be fair because results will be recorded exactly by the syringe. Also I am going to be careful not to change things like the temperature, surface area of marble chips and kinetic energy (not stirring the solution), because all this things will alter the rate of reaction. My tests will also be safe because I am going to use goggles so no acid hurts my eye. I am also going to be careful and in case any acid falls on the skin I am going to have a water supply next to me so I can wash quickly. I am also going to have the supervision of an adult and if any glass breaks, is the adult who is going to pick it up and throw it to the bin so we don't have any chance of being injured. MethodThe apparatus will be set up like this(stick here diagram)In order for not affecting the reaction by external factors such as temperature I am going to measure the temperature with a thermometer and record it every experiment. As the beaker can't be moved because if not it will be stirred I am going to keep it in a separate place so I don't move it by accident or even throw it. I am also going to make into small pieces the marble chips and use always .45 g. for each investigation because like this the reactions will happen faster and also so the surface area and the mass of all the tested marble chips is equal.I am going to start using HCL 0.5 concentrated, make three tries with it and then pass to the next one and like that with all 4 different concentrations. The volume of acid, although the concentration changes I am going to keep it the same because if not in one there will be more acid particles because there will be more space. The way I am going to record the results is watching how much CO is filled in 10 seconds with each concentration of acid and recording it in a table.ResultsOne table per each different concentration of acidExperiment 1 Vol. acid (cm)

5

5

5Temp. of acid (ºC) Room temp. Room temp. Room temp.Concentration of acid 0.5 0.5 0.5CO amount in 10 seconds (Cm) 5 7

8 Experiment 1 Vol. acid (cm)

5

5

5Temp. of acid (ºC) Room temp. Room temp. Room temp.Concentration of acid 1.0 1.0 1.0CO amount in 10 seconds (Cm) 4 45

48 Experiment 1 Vol. acid (cm)

5

5

5Temp. of acid (ºC) Room temp. Room temp. Room temp.Concentration of acid 1.5 1.5 1.5CO amount in 10 seconds (Cm) 75 78

81 Experiment 1 Vol. acid (cm)

5

5

5Temp. of acid (ºC) Room temp. Room temp. Room temp.Concentration of acid .0 .0 .0CO amount in 10 seconds (Cm) 4 8

100+ Please note that this sample paper on how concentration affects rate of reaction is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on how concentration affects rate of reaction, we are here to assist you. Your persuasive essay on how concentration affects rate of reaction will be written from scratch, so you do not have to worry about its originality.

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Bertholt Brecht

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"The world is out of joint, certainly and it will take powerful movement to manipulate it all back again." Bertholt Brecht. This very famous quote by Bertholt Brecht was remembered throughout the world for the world was in war. Individuals in the world were going through life and social change. Bertholt Brecht was one of the chief innovators of modern theatrical techniques and he was both a poet and playwright. His epic theatrical creations developed drama as a forum for social and idealistic causes. Brecht's imagination, artistic genius, and social views distinguish his work and life. Eugene Bertholt Brecht was born February 10, 188 in Augsburg, Germany. Brecht was influenced by a variety of selections including Chinese, Japanese and Indian theatre, the Elizabethans (especially Shakespeare), Greek tragedy and many more. In the early 10's, Europe was a cauldron of social and political unrest. Literature sought not to provide accurate images, but it provoked change, encouraged thought and evaluation. Bertholt Brecht attempted to highlight the undeniable triumph of reason and knowledge to emphasise victory over authoritarian oppression. The foundations of world literature have always been based on the attitudes and values of society. Authors, playwrights and poets are influenced fundamentally by the ideologies around them which brought all of Brecht's plays to a form of social and political instruction. Bertholt Brecht did not consider drama to be a form of entertainment; however he instead portrayed important images to the people of Europe, showing them the potential for social, political and economic change. Brecht being a Marxist, he grew up in an ordinary German family; saw the progress of several regimes of European history, including the accedence of Adolf Hitler and the effects of government's ideology on people. These encounters brought Brecht to become a respected social commentator and he questioned the ideologies and views of the government. In one of Brecht's play The Life of Galileo, the ideologies were prevalent to government in Europe at the time.It's not difficult to realise why his texts were banned from Germany not long after they became widely read. His support for the empowerment of the common man and those marginalised in society is clear, and his endorsement of socialism is outright. Rejecting the methods of traditional realistic drama, Brecht preferred a loose narrative form in which he used distancing devices to prevent the spectator from identifying with the characters on stage. Brechts one commercial success was The Threepenny Opera, a play still subject to occasional revival. Based on John Gays The Beggars Opera, it portrays the poor of London, living lives that are nasty, brutish, squalid, and short. Brechts intention was to display the fundamentally evil nature of society, but his largely bourgeois audience merely took it as a reasonably accurate portrayal of impoverished existence, never questioning their own role in sustaining poverty, perhaps even feeling their ambivalent attitude towards the oppressed reinforced by the play. Brecht loathed this reaction, feeling that the play was completely misunderstood, and vowed not to repeat his mistake in creating something that the bourgeoisie society could like. Many of Bertholt Brechts first plays were written in Germany during the 10s; however he was not widely known until much later. Eventually his theories of stage presentation exerted more influence on the course of mid-century theatre in the West than did those of any other individuals. Brechts earliest work was heavily influenced by German Expressionism, but it was his preoccupation with Marxism and the idea that man and society could be intellectually analysed. This then led him to develop his theory of epic theatre. Brecht believed that theatre should appeal not to the spectators feelings but to his reason. While still providing entertainment, it should be strongly didactic and capable of provoking social change. In the Realistic theatre of illusion, he argued, the spectator tended to identify with the characters on stage and become emotionally involved with them rather than being stirred to think about his own life.

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To encourage the audience to adapt a more critical attitude to what was happening on stage, Brecht developed his Verfremdungs-effekt (alienation effect)--i.e., the use of anti-illusive techniques to remind the spectators that they are in a theatre, watching an enactment of reality instead of reality itself. Such techniques included flooding the stage with harsh white light, regardless of where the action was taking place; and leaving the stage lamps in full view of the audience; making use of minimal props; indicative scenery; intentionally interrupting the action at key junctures with songs in order to drive home an important point or message; and projecting explanatory captions onto a screen or employing placards. Some techniques of Brechts staging included music as an important part of the performance; actors whose songs were intended to narrate rather than emote; an overt moral purpose to the production underscored by clear and realistic physical acting. Brecht insisted that actors demonstrate their social attitudes through the physical disposition of their bodies. Brechts special lexicon (theatrical jargon) is confusing as he invented a complex language to describe essentially straightforward ideas - this lexicon includes such terms as epic-theatre, non-Aristotelian drama and so on. Three-dimensional set pieces, machinery, revolving stage, and lighting often used to trick the audience. Brechts most important plays, where some such as Leben des Galilei (The Life of Galileo), Mutter Courage und ihre Kinder (Mother Courage and Her Children), and Der gute Mensch von Sezuan (The Good Person of Szechwan). These plays were written between 17 and 145 when he was in exile from the Nazi regime, first in Scandinavia and then in the United States. At the invitation of the newly formed East German government, when he returned and found the Berliner Ensemble in 14 with his wife, Helene Weigel, as leading actress. It was only at this point, through his own productions of his plays, that Brecht earned his reputation as one of the most important figures of 0th-century theatre. Typically, Brechts work deals with guileless individuals faced by implacably evil society. The early Brecht seems to have believed that the serene surface of society merely masked the true nature of the human character -- unbelievable brutality -- but after his conversion to Marxism, concluded that bourgeois society was responsible for the viciousness of humanity and that, once it was replaced by a socialist order, the fundamental goodness of human nature could flower.Eugene Bertholt Brecht was and still is one of the greatest playwrights and poets known in modern theatre. Brecht transformed the foundation of world literature by creating plays that formed the people in Europe of social, political and economic change. He transformed realistic drama from a loose narrative form to another unique distancing technique called the "alienation" technique. In this technique, where he overruled the obvious, Brecht earned acceptance and reputation by such individuality. This acceptance led Bertholt Brecht to become the most important figures of the twentieth century. Please note that this sample paper on Bertholt Brecht is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Bertholt Brecht, we are here to assist you. Your cheap college papers on Bertholt Brecht will be written from scratch, so you do not have to worry about its originality.

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I will later

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DEFINITION A budget is a quantitative projection of business operation. It is the formal process of planning future activities that involve the acquisition and use of resources during a specified time period (called a budget period). It helps management to carry out its control function by periodically actual performance with that planned for in the budget. This comparison of actual and budgeted performance is done by using budgeted performance report.

PURPOSES OF BUGETING1. Compels Planning - Budgeting helps managers set realistic goals by requiring them to plan specific actions to meet their goals. Budgeting also helps managers prepare for a range of conditions. It leads them to ask what-if questions and to plan for contingencies.. Control - means to monitor the business process and rectify any deviation of the performance from original plan by comparison of actual and budgeted figures. A department or activity can be evaluated by such comparison and a budget is pretty good benchmark for evaluation as it is based on the company¡¦s current status. It considers all changes from past conditions. . Co-ordination - The master budget coordinates the activities of the organization. It forces managers to consider relationships among operations across the entire value chain. 4. Communication - Goals, targets, and other information need to be communicated to the relevant employees in order to promote understanding and facilitate operating flows. Budgets convey such useful information to employees who may not be directly involved in such activities.5. Motivation -The goals and targets as stipulated in the budgets may serve as motivators for employees.BUDGET PERIOD The accounting year is often split into quarterly or monthly control periods. Fixed Budgeting Method - The budget period may be fixed for a defined time frame. In fixed budgeting method, a budget would begin with a full period¡¦s budget information; as times goes by, the remaining budget period¡¦s budget information will be applicable only to the remaining part of the period. The fixed budget is criticized for not providing enough budget information throughout the period concerned. Continuous Budgeting Method - Most businesses now prepare budgets on a continuous basis. For a yearly budget, within one quarter or month, budget information for the fourth quarter or twelfth month ahead is obtained, and often the original budget information for the remaining three-quarters or eleven months is revised. Thus, there is always a year¡¦s budget available at any time to management. Under this continuous budgeting method, the budgets are known as continuous budgets. Medium-range Plan - Many large businesses also prepare a strategic plan containing a longer-term budget, usually covering five years. These financial plans are often called medium-rang plans. They serve as a guide to management in preparing the annual budgets. They indicate in broad terms the general direction in which the business is heading.TYPES OF BUDGETSThe output of the budgeting process is the master budget which is a set of interrelated budgets representing a comprehensive plan of action for the relevant budget period.1. Operating Budget - comprises the budgeted income statement and its component budgets on sales, costs, and expenses. It sets the expected revenues and expenses - and thus operating income - for the period. Sales or revenue budget Purchases, cost of goods sold and inventory budget Operating expenses budget Budgeted income statement . Financial Budget - comprises the cash budget, capital expenditure budget, the budgeted balance sheet, and the budgeted statement of sources and application of funds. It projects cash inflows and outflows and the period-ending balance sheet. Cash Budget - statement of budgeted cash receipts and disbursements, details how the business expects to proceed from the beginning cash balance to the desired ending balance. Budgeted Balance Sheet. Capital Expenditures Budget - presents the company¡¦s plan for purchases of property, plant, equipment, and other long-term assets. (Not involved in B10) BUDGETED INCOME STATEMENT (OPERATING BUDGET)The budgeted income statement bring together plans from the sales budget, the group of budgets which give estimated cost of goods sold, and three expense budgets on selling, administrative and financial expenses.Procedure1. Sales Budget. Production Budget. Direct Materials Budget4. Direct Labour Budget5. Factory Overhead Budget6. Cost of Goods sold Budget7. Expense Budget8. Budgeted Income Statement1. Sales Budget - Components based onÜ Product groupsÜ Geographical locations (specific store or branch) . Production Budget - Shows the quantity of units of finished products to be produced within the period. The units to be produced in a month is equal to Ü the budget sales volume for that monthÜ + the desired finished goods inventory at the end of the monthÜ Minus the finished goods inventory at the beginning of the month ( Note The entries for beginning or ending balances under the total column are not the total amount of individual monthly balances but the figures that represent either the beginning balance for the whole period concerned or the ending balance for the whole period concerned.) . Direct Materials Budget - shows the quantities of direct materials to be purchased and the associated cost within the period. The direct material to be purchased in a month is equal toÜ the quantity required for the current month¡¦s productionÜ + the desired ending quantityÜ Minus the beginning quantity 4. Direct Labour Budget - shows how many direct labour hour s will be needed for the monthly production and at what cost level within the budget or control period. 5. Factory Overhead Budget6. Cost of Goods sold Budget7. Expense Budget - includes selling, administrative and financial expenses8. Budgeted Income StatementCASH BUDGETIt represents the timing of expected receipt and payments, and its purpose is to make sure that sufficient levels of cash will be available during the year. It can be presented in two formats-| the total receipts and total payments format| the trading transactions and non-trading transaction format.Point to Note1. Discount Allowed e.g. /10, n/0 - means a % discount if payment is made within 10days from the date of invoice; the net invoice sum is to be paid within the credit period of 0days if the cash discount is not taken. . Calculation of cash collected from credit sales If the credit terms are 0days, then in any month the cash to be collected on credit sales will be the previous month¡¦s sales. If the credit terms are 45 days, then in any month the collection will be 50% of the previous month¡¦s credit sales and 50% of the credit sales of the month before the previous month. If the credit terms are 60 days, then in any month the collection will be 100% of the credit sales of month before the previous month. If the credit terms are /10, n/0, and half of the credit sales are assumed to be paid with discount allowed, then in any month the collection from credit sales customers will be 8% of half of two-thirds of the current month¡¦s credit sales and 8% of one-third of the previous month¡¦s sales, plus 100% of one-half of the previous month¡¦s credit sales.Why the actual performance failed to meet the budget?1. The budget was unrealistic.. The business did a poor job of selling or production during the period.. Uncontrollable factors hindered the performance. i will later Please note that this sample paper on i will later is for your review only. 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