Essay :Energy Crisis

Now there is a serious Power Crisis in the ENTIRE country. Here in Islamabad, we are facing load-shedding up to 4-8 hours a day in urban areas (that is in Islamabad) and things are not improving. Initially the load-shedding was for 30 minutes after every 2 hours but since last week, they do it after every 1 hour during the day time and every 30 minutes after 5 PM (for 30 minutes mostly and 1 hour in between). The most irritating part of this load-shedding is that NO schedule whatsoever has been published for people to know and try to manage things in a better way. I was watching Geo and they were showing reports of rural areas of entire country where they are getting electricity for only 2-4 hours a day.
Effects:
It affects all sections of society, students (education), industry, agriculture, health (hospitals) - every aspect of society as we know it.The continuing power crisis has not only disrupted the daily lives and businesses of people but has also added to their miseries. It has impeded the growth of both small scale and large scale businesses. It would not be wrong to say that the frequent power breakdowns have brought both the domestic and social lives to a standstill. The shopping malls and the open markets that were once swamped by the customers are now dark and deserted.
Resources of electricity in pakistan:
As per following details power generation in Pakistan is 12641 mega watts. While 5117 mega watts power is under construction and pre feasibility stage.
Hub Power Company 1286 MW
Jamshoro Power Company 1054 MW
Lalpir & Pakgen Thermal Station 727 MW
Guddu Thermal Station 1049 MW
Kapco 1600 MW
Ghazi Barotha 1450 MW
Mangla 1000 MW
Tarbela 3478 MW
Warsak 243 MW
Chashma Dam 184 MW
Malakand Dam 22 MW
Dargai Dam 20 MW
Rasul Dam 20 MW
Nadipur Dam 13 MW
Shadipur Dam 14 MW
Chihoki Dam 14 MW
Renala Dam 1 MW
Chitral Dam 1 MW
Kuram Ghari Dam 4 MW
Jagran Dam 30 MW
Chashma Nuclear Power Complex 300 MW
Karachi Nuclear Power Plant 125 MW
Jhimpir Wind Power Plant 6 MW
Under Construction
Akhori Dam 600 MW (under consideration: in pre feasibility study stage)
Diamir Basha Dam 4500 MW (under construction, to be completed in 2018)
Gomal Zam Dam 17 MW (under construction, to be completed in 2017)
Conclusion:
It is, therefore, very clear from the above that Pakistan needs to aggressively pursue ways to increase its power-generating capacity. The best options available today are nuclear and coal, followed by wind and solar. Hydroelectricity can only be pursued after all environmental, ecological and geopolitical issues are settled with a consensus among all four provinces.
Pakistan needs to set up at least a dozen nuclear power plants, large coal fired plants, wind farms and solar plants in the next 10 years to generate about 20,000 MW of electricity. We need to invest at least a billion dollars a year in developing the infrastructure and establishing power plants using nuclear, coal, wind and solar technology. We need to cut back on non-development expenditures by at least one billion dollars a year to invest in energy needs.
Industrialisation around the world has taken place because of the abundance of reliable and cheap electrical power (infrastructure, human resource and government incentives follow). Reliable and cheap availability of electric power in Pakistan will lead to large-scale investment in industry, creation of jobs, elimination of unemployment and poverty, greater manufacturing and exports, trade surplus and the reduction of deficits. It will lead to a prosperous Pakistan
Effect:
An energy crisis is any great shortfall (or price rise) in the supply of energy resources to an economy. It usually refers to the shortage of oil and additionally to electricity or other natural resources.
The crisis often has effects on the rest of the economy, with many recessions being caused by an energy crisis in some form. In particular, the production costs of electricity rise, which raises manufacturing costs.
For the consumer, the price of gasoline (petrol) and diesel for cars and other vehicles rises, leading to reduced consumer confidence and spending, higher transportation costs and general price rising.

Essay: Water Crisis in Pakistan

God has blessed Pakistan with abandoned water resources, with water flowing down the Himalayas and Karakorum heights, from the world’s largest glaciers, a free and unique bounty of nature for this land of alluvial plains. As a result of this natural resource, today we have the worlds marvelous and the largest irrigation system that irrigates over 16 million hectors of land, out of 34 million hectors of cultivable land available. But unfortunately as we all know that now a days our country is facing severe shortage of water. There are two main reasons, one natural due to prolong drought---which is beyond the control of a man, and the other due to the gross negligence in the development and mis-management of water resources.
Water reservoirs / capacities:-
Pakistan is having three basic reservoirs, namely mangla dam reservoir, Terbela dam reservoir and Chashma barrage reservoir. more small reservoirs like Warsak, Baran dam hub, Khanpur, Tanda, Rawal, Simly, Bakht khan Hamal lake, Mancher lake, Kinjhar lake and Chotiari lake Arealso included as small storage.
Gross capacity of 11.62 maf and a live storage capacity of 9.68 maf in terbela dam which has now reduce to 7.295 due to silting, in mangla dam presently storage capacity is 4.636 maf water actual capacity was 5.41 and chasma barrage capacity is also reduce from 0.717 to 0.435 maf.
UTILIZATION OF WATER
In Pakistan we utilize the water available to us for different purposes. The basic utilization is for irrigation and then used for power generation, drinking and also provided to some Industries.
Impact on economy / society
As I said earlier that agriculture is our backbone and the water flowing in the channels to the crops is its blood line—and if there is no or less water then we should be prepared for facing problems economically as well as socially. According to the estimates of federal government, the agriculture sector would suffer a loss of about Rs. 90 billion because of drought.
a) Less water means less agricultural yields and to fulfill the food requirements of the nation, we will be dependent on other countries.
(b) Raising livestock is the main source of livelihood of rural areas. It is also an important economic activity, which contributes 9.7% of gdp, will be affected due to shortage of water.
(c) Orchards of Pakistan bring home a healthy amount of foreign exchange, which can be affected due water shortage.
(d) Due to less production of main crops, which are wheat, cotton, sugar cane and rice, the Industries related to them will suffer adversely.
(e) Then due to drought and more dependency on ground water for irrigation, the water table will go down, and this will cause water constrains to the population.
(f) Less agricultural outputs will compel people to head towards urban areas for jobs, which will increase the unemployment further.
(g) The distribution of water is controlled from the center by irsa (Indus river system authority) as per 1991 agreement between the provinces. Now the shortage of water will cause disputes between the provinces, which may cause harm to the national integrity.
Recommendations
The national water strategy must be based upon two essential elements covering
• Water developments
• Water management
The water development strategy is largely based upon construction of new storage reservoirs where as the water management strategy will help in reducing the present losses
Water development
In this construction of following dams should start immediately:-
(a) Chasha dam
(b) Kalabagh dam
(c) Thal reservoir
(d) Raised Mangla dam
(e) Mirani dam
(f) Gomalzam dam
From these projects we shall be able to store additional 20maf of water.
Water management
1. Presently the losses occur due to seepage, infiltration and leakages etc. seepage results in water logging and these losses can be reduced or eliminated by lining the canals.
2. In addition, people should be educated to conserve water by cooperation.
3. Further more government should make laws on water conservation.
4. Use modern irrigation techniques, that are trickling, sprinkling etc.
5. Presently irrigation department has failed to stop the illegal theft and extraction; thus irrigation distribution system needs to be privatized through water user associations.
Conclusion
Implementation of the recommendations will enable the country to meet the challenges, and achieve the objectives of integrated, efficient, environmentally and financially sustainable development and management of limited water resources. At the same time it will enable us to utilize every drop of our water for our bright future.

The sound card - an adapter
The sound card itself is an ISA adapter. Here you see an AWE64 Gold card:
The connectors may look different on different sound cards, but as an example: In the back of
the AWE64 Gold card you find connectors to:
1)Microphone input, a jack
2)Line input, a jack
3)Two phone jacks for active speakers
4)A DB15 jack for MIDI or joystick.
Sound cards typically have a 2 Watt amplifier built-in. It can pull a set of earphones. The
exception is the Gold card, where the amplifier is eliminated. It has no practical significance, since you probably want to attach it to a pair of active speakers.

Meaning of Standard Costing:

When you want to measure some thing, you must take some parameter or yardstick for measuring. We can call this as standard. What are your daily expenses? An average of $50! If you have been spending this much for so many days, then this is your daily standard expense.
The word standard means a benchmark or yardstick. The standard cost is a predetermined cost which determines in advance what each product or service should cost under given circumstances.
In the words of Backer and Jacobsen, “Standard cost is the amount the firm thinks a product or the operation of the process for a period of time should cost, based upon certain assumed conditions of efficiency, economic conditions and other factors.”
Definition
The CIMA, London has defined standard cost as “a predetermined cost which is calculated from managements standards of efficient operations and the relevant necessary expenditure.” They are the predetermined costs on technical estimate of material labor and overhead for a selected period of time and for a prescribed set of working conditions. In other words, a standard cost is a planned cost for a unit of product or service rendered.
The technique of using standard costs for the purposes of cost control is known as standard costing. It is a system of cost accounting which is designed to find out how much should be the cost of a product under the existing conditions. The actual cost can be ascertained only when production is undertaken. The predetermined cost is compared to the actual cost and a variance between the two enables the management to take necessary corrective measures.
Advantages
Standard costing is a management control technique for every activity. It is not only useful for cost control purposes but is also helpful in production planning and policy formulation. It allows management by exception. In the light of various objectives of this system, some of the advantages of this tool are given below:
1. Efficiency measurement-- The comparison of actual costs with standard costs enables the management to evaluate performance of various cost centers. In the absence of standard costing system, actual costs of different period may be compared to measure efficiency. It is not proper to compare costs of different period because circumstance of both the periods may be different. Still, a decision about base period can be made with which actual performance can be compared.
2. Finding of variance-- The performance variances are determined by comparing actual costs with standard costs. Management is able to spot out the place of inefficiencies. It can fix responsibility for deviation in performance. It is possible to take corrective measures at the earliest. A regular check on various expenditures is also ensured by standard cost system.
3. Management by exception-- The targets of different individuals are fixed if the performance is according to predetermined standards. In this case, there is nothing to worry. The attention of the management is drawn only when actual performance is less than the budgeted performance. Management by exception means that everybody is given a target to be achieved and management need not supervise each and everything. The responsibilities are fixed and every body tries to achieve his/her targets.
4. Cost control-- Every costing system aims at cost control and cost reduction. The standards are being constantly analyzed and an effort is made to improve efficiency. Whenever a variance occurs, the reasons are studied and immediate corrective measures are undertaken. The action taken in spotting weak points enables cost control system.
5. Right decisions-- It enables and provides useful information to the management in taking important decisions. For example, the problem created by inflating, rising prices. It can also be used to provide incentive plans for employees etc.
6. Eliminating inefficiencies-- The setting of standards for different elements of cost requires a detailed study of different aspects. The standards are set differently for manufacturing, administrative and selling expenses. Improved methods are used for setting these standards. The determination of manufacturing expenses will require time and motion study for labor and effective material control devices for materials. Similar studies will be needed for finding other expenses. All these studies will make it possible to eliminate inefficiencies at different steps.
Limitations of Standard Costing
1. It cannot be used in those organizations where non-standard products are produced. If the production is undertaken according to the customer specifications, then each job will involve different amount of expenditures.
2. The process of setting standard is a difficult task, as it requires technical skills. The time and motion study is required to be undertaken for this purpose. These studies require a lot of time and money.
3. There are no inset circumstances to be considered for fixing standards. The conditions under which standards are fixed do not remain static. With the change in circumstances, if the standards are not revised the same become impracticable.
4. The fixing of responsibility is not an easy task. The variances are to be classified into controllable and uncontrollable variances. Standard costing is applicable only for controllable variances.
For instance, if the industry changed the technology then the system will not be suitable. In that case, we will have to change or revise the standards. A frequent revision of standards will become costly.

Setting Standards

Normally, setting up standards is based on the past experience. The total standard cost includes direct materials, direct labor and overheads. Normally, all these are fixed to some extent. The standards should be set up in a systematic way so that they are used as a tool for cost control.
Various Elements which Influence the Setting of Standards
Setting Standards for Direct Materials
There are several basic principles which ought to be appreciated in setting standards for direct materials. Generally, when you want to purchase some material what are the factors you consider. If material is used for a product, it is known as direct material. On the other hand, if the material cost cannot be assigned to the manufacturing of the product, it will be called indirect material. Therefore, it involves two things:
· Quality of material
· Price of the material
When you want to purchase material, the quality and size should be determined. The standard quality to be maintained should be decided. The quantity is determined by the production department. This department makes use of historical records, and an allowance for changing conditions will also be given for setting standards. A number of test runs may be undertaken on different days and under different situations, and an average of these results should be used for setting material quantity standards.
The second step in determining direct material cost will be a decision about the standard price. Material’s cost will be decided in consultation with the purchase department. The cost of purchasing and store keeping of materials should also be taken into consideration. The procedure for purchase of materials, minimum and maximum levels for various materials, discount policy and means of transport are the other factors which have bearing on the materials cost price. It includes the following:
· Cost of materials
· Ordering cost
· Carrying cost
The purpose should be to increase efficiency in procuring and store keeping of materials. The type of standard used-- ideal standard or expected standard-- also affects the choice of standard price.
Setting Direct Labor Cost
If you want to engage a labor force for manufacturing a product or a service for which you need to pay some amount, this is called wages. If the labor is engaged directly to produce the product, this is known as direct labor. The second largest amount of cost is of labor. The benefit derived from the workers can be assigned to a particular product or a process. If the wages paid to workers cannot be directly assigned to a particular product, these will be known as indirect wages. The time required for producing a product would be ascertained and labor should be properly graded. Different grades of workers will be paid different rates of wages. The times spent by different grades of workers for manufacturing a product should also be studied for deciding upon direct labor cost. The setting of standard for direct labor will be done basically on the following:
· Standard labor time for producing
· Labor rate per hour
Standard labor time indicates the time taken by different categories of labor force which are as under:
· Skilled labor
· Semi-skilled labor
· Unskilled labor
For setting a standard time for labor force, we normally take in to account previous experience, past performance records, test run result, work-study etc. The labor rate standard refers to the expected wage rates to be paid for different categories of workers. Past wage rates and demand and supply principle may not be a safe guide for determining standard labor rates. The anticipation of expected changes in labor rates will be an essential factor. In case there is an agreement with workers for payment of wages in the coming period, these rates should be used. If a premium or bonus scheme is in operation, then anticipated extra payments should also be included. Where a piece rate system is used, standard cost will be fixed per piece. The object of fixed standard labor time and labor rate is to device maximum efficiency in the use of labor.
Setting Standards of Overheads
The next important element comes under overheads. The very purpose of setting standard for overheads is to minimize the total cost. Standard overhead rates are computed by dividing overhead expenses by direct labor hours or units produced. The standard overhead cost is obtained by multiplying standard overhead rate by the labor hours spent or number of units produced. The determination of overhead rate involves three things:
· Determination of overheads
· Determination of labor hours or units manufactured
· Calculating overheads rate by dividing A by B
The overheads are classified into fixed overheads, variable overheads and semi-variable overheads. The fixed overheads remain the same irrespective of level of production, while variable overheads change in the proportion of production. The expenses increase or decrease with the increase or decrease in output. Semi-variable overheads are neither fixed nor variable. These overheads increase with the increase in production but the rate of increase will be less than the rate of increase in production. The division of overheads into fixed, variable and semi-variable categories will help in determining overheads.

Determination of Standard Costs

How should the ideal standards for better controlling be determined?
1. Determination of Cost Center
According to J. Betty, “A cost center is a department or part of a department or an item of equipment or machinery or a person or a group of persons in respect of which costs are accumulated, and one where control can be exercised.” Cost centers are necessary for determining the costs. If the whole factory is engaged in manufacturing a product, the factory will be a cost center. In fact, a cost center describes the product while cost is accumulated. Cost centers enable the determination of costs and fixation of responsibility. A cost center relating to a person is called personnel cost center, and a cost center relating to products and equipments is called impersonal cost center.
2. Current Standards
A current standard is a standard which is established for use over a short period of time and is related to current condition. It reflects the performance that should be attained during the current period. The period for current standard is normally one year. It is presumed that conditions of production will remain unchanged. In case there is any change in price or manufacturing condition, the standards are also revised. Current standard may be ideal standard and expected standard.
3. Ideal Standard
This is the standard which represents a high level of efficiency. Ideal standard is fixed on the assumption that favorable conditions will prevail and management will be at its best. The price paid for materials will be lowest and wastes etc. will be minimum possible. The labor time for making the production will be minimum and rates of wages will also be low. The overheads expenses are also set with maximum efficiency in mind. All the conditions, both internal and external, should be favorable and only then ideal standard will be achieved.
Ideal standard is fixed on the assumption of those conditions which may rarely exist. This standard is not practicable and may not be achieved. Though this standard may not be achieved, even then an effort is made. The deviation between targets and actual performance is ignorable. In practice, ideal standard has an adverse effect on the employees. They do not try to reach the standard because the standards are not considered realistic.
4. Basic Standards
A basic standard may be defined as a standard which is established for use for an indefinite period which may a long period. Basic standard is established for a long period and is not adjusted to the preset conations. The same standard remains in force for a long period. These standards are revised only on the changes in specification of material and technology productions. It is indeed just like a number against which subsequent process changes can be measured. Basic standard enables the measurement of changes in costs. For example, if the basic cost for material is Rs. 20 per unit and the current price is Rs. 25 per unit, it will show an increase of 25% in the cost of materials. The changes in manufacturing costs can be measured by taking basic standard, as a base standard cannot serve as a tool for cost control purpose because the standard is not revised for a long time. The deviation between standard cost and actual cost cannot be used as a yardstick for measuring efficiency.
5. Normal Standards
As per terminology, normal standard has been defined as a standard which, it is anticipated, can be attained over a future period of time, preferably long enough to cover one trade cycle. This standard is based on the conditions which will cover a future period of five years, concerning one trade cycle. If a normal cycle of ups and downs in sales and production is 10 years, then standard will be set on average sales and production which will cover all the years. The standard attempts to cover variance in the production from one time to another time. An average is taken from the periods of recession and depression. The normal standard concept is theoretical and cannot be used for cost control purpose. Normal standard can be properly applied for absorption of overhead cost over a long period of time.
6. Organization for Standard Costing
The success of standard costing system will depend upon the setting up of proper standards. For the purpose of setting standards, a person or a committee should be given this job. In a big concern, a standard costing committee is formed for this purpose. The committee includes production manager, purchase manager, sales manager, personnel manager, chief engineer and cost accountant. The cost accountant acts as a co-coordinator of this committee.
7. Accounting System
Classification of accounts is necessary to meet the required purpose, i.e. function, asset or revenue item. Codes can be used to have a speedy collection of accounts. A standard is a pre-determined measure of material, labor and overheads. It may be expressed in quality and its monetary measurements in standard costs.

Break Even Analysis:

Introduction
In this lesson, we will discuss in detail the highlights associated with cost function and cost relations with the production and distribution system of an economic entity.
To assist planning and decision making, management should know not only the budgeted profit, but also:
· the output and sales level at which there would neither profit nor loss (break-even point)
· the amount by which actual sales can fall below the budgeted sales level, without a loss being incurred (the margin of safety)
MARGINAL COSTS, CONTRIBUTION AND PROFIT
A marginal cost is another term for a variable cost. The term ‘marginal cost’ is usually applied to the variable cost of a unit of product or service, whereas the term ‘variable cost’ is more commonly applied to resource costs, such as the cost of materials and labour hours.
Marginal costing is a form of management accounting based on the distinction between:
a. the marginal costs of making selling goods or services, and
b. fixed costs, which should be the same for a given period of time, regardless of the level of activity in the period.
Suppose that a firm makes and sells a single product that has a marginal cost of £5 per unit and that sells for £9 per unit. For every additional unit of the product that is made and sold, the firm will incur an extra cost of £5 and receive income of £9. The net gain will be £4 per additional unit. This net gain per unit, the difference between the sales price per unit and the marginal cost per unit, is called contribution.
Contribution is a term meaning ‘making a contribution towards covering fixed costs and making a profit’. Before a firm can make a profit in any period, it must first of all cover its fixed costs. Breakeven is where total sales revenue for a period just covers fixed costs, leaving neither profit nor loss. For every unit sold in excess of the breakeven point, profit will increase by the amount of the contribution per unit.
C-V-P analysis is broadly known as cost-volume-profit analysis. Specifically speaking, we all are concerned with in-depth analysis and application of CVP in practical world of industry management.
Cost-Volume-Profit (C-V-P) Relationship
We have observed that in marginal costing, marginal cost varies directly with the volume of production or output. On the other hand, fixed cost remains unaltered regardless of the volume of output within the scale of production already fixed by management. In case if cost behavior is related to sales income, it shows cost-volume-profit relationship. In net effect, if volume is changed, variable cost varies as per the change in volume. In this case, selling price remains fixed, fixed remains fixed and then there is a change in profit.
Being a manager, you constantly strive to relate these elements in order to achieve the maximum profit. Apart from profit projection, the concept of Cost-Volume-Profit (CVP) is relevant to virtually all decision-making areas, particularly in the short run.
The relationship among cost, revenue and profit at different levels may be expressed in graphs such as breakeven charts, profit volume graphs, or in various statement forms.
Profit depends on a large number of factors, most important of which are the cost of manufacturing and the volume of sales. Both these factors are interdependent. Volume of sales depends upon the volume of production and market forces which in turn is related to costs. Management has no control over market. In order to achieve certain level of profitability, it has to exercise control and management of costs, mainly variable cost. This is because fixed cost is a non-controllable cost. But then, cost is based on the following factors:
· Volume of production
· Product mix
· Internal efficiency and the productivity of the factors of production
· Methods of production and technology
· Size of batches
· Size of plant
Thus, one can say that cost-volume-profit analysis furnishes the complete picture of the profit structure. This enables management to distinguish among the effect of sales, fluctuations in volume and the results of changes in price of product/services.
In other words, CVP is a management accounting tool that expresses relationship among sale volume, cost and profit. CVP can be used in the form of a graph or an equation. Cost-volume- profit analysis can answer a number of analytical questions. Some of the questions are as follows:
1. What is the breakeven revenue of an organization?
2. How much revenue does an organization need to achieve a budgeted profit?
3. What level of price change affects the achievement of budgeted profit?
4. What is the effect of cost changes on the profitability of an operation?
Cost-volume-profit analysis can also answer many other “what if” type of questions. Cost-volume-profit analysis is one of the important techniques of cost and management accounting. Although it is a simple yet a powerful tool for planning of profits and therefore, of commercial operations. It provides an answer to “what if” theme by telling the volume required to produce.
Following are the three approaches to a CVP analysis:
· Cost and revenue equations
· Contribution margin
· Profit graph
Objectives of Cost-Volume-Profit Analysis
1. In order to forecast profits accurately, it is essential to ascertain the relationship between cost and profit on one hand and volume on the other.
2. Cost-volume-profit analysis is helpful in setting up flexible budget which indicates cost at various levels of activities.
3. Cost-volume-profit analysis assist in evaluating performance for the purpose of control.
4. Such analysis may assist management in formulating pricing policies by projecting the effect of different price structures on cost and profit.