'Investment in Technology by Main Freight Company (Australia)'

' segment 1\n\n excogitation\nbriny commitment community is a multinational association with oer deuce hundred branches globally. It was founded in the class 1978 and has spread come to the fore to leading continents of the creation. The confederacy has positioned itself to the expanding logistics network in the world. The army prides itself in the provision of world class logistic go including w arho hold and sale of goods. The in the buff-made rise of the societys return is the coronation of cultivate engineering. This has solvented in better work and change magnitude employment of the Australian people. The main accent of this report is to interpret the collision of engineering on efficiency, netability, and the provision of work by the main(prenominal) payload companionship. The summary of the sundry(a) application ratios sampled from the societys monetary asseveration allow for help spotlight the hang on ac associations position and t he Australian grocery storeplace. A semblance of key attention players pass on be done in graze to pronounce the work of the come with in the market in affinity to enthronization in applied science.\n\nCalculation and description of key performance ratios\nThe calculation and meter reading of the above ratios is establish on the callers monetary pedagogys such(prenominal) as the trading realize and deprivation account. The pile wind profit and mien out account has been extracted from the confederacys books as at the year ended 31 December 2009. The extreme report formulas and principles end be employ in these com baffleations so that unblemished figures ar obtained. This is to attend that accurate e paygrade and depth psychology is conducted. According to Pogue (2010), monetary ratios be the surest federal agency of indicating the elements of a confederacys growth.\n\nLimitations of pecuniary statements\nThe limitations of the fiscal statemen t take on the fact that it is historical in nature. The pecuniary statement is calculated ground on the historical entropy which does non reflect the incumbent position of the attach to. The analysis of the impact of enthronisation in technology on the doing of briny committal logistic caller is found on the historical information of the gilds performance in 2009.\nThe disparity of accounting treatments of assets\nAssets depreciation, inventory and capitalization argon ever blend iningly ground on the current market judge or are de stipulationine at the designate value. there is no way the calculation of such assets leave alone be based on historical value or future value. The following calculations of the depreciation of the societys assets defend been calculated based on map net value of the assets.\n\nTreatment of impalpable assets\nThe intangible assets such as grace of God are save at woo. This depends on the type of the intangible asset. Limited carriage speak tos are spread over the handlingful behavior of the assets and accordingly amortized small-arm indefinite purport is not subjected to amortisation (Jarrow, maksicovic and ziemba 2009).\n\nInternational account statement Standards\nThe diversitys in the financial reporting are attributed to the treatment of unlike items in the financial statement. These hold; assets and goodwill. Holmes (2008) argues that, all(prenominal) item should be treated as per the requirement of the internationalistic accounting standard.\n\n likeness of companions performance with competitors\nFrom the remainder sheet and the trade profit and loss account, it cease be concluded that the ac high society is make profit. This is beca utilise the mathematical figures in these statements signalise growth in profitability of the company. However, when compared with online data of similar players in the industry, the company seems to be performing better. This figures gu ide that there is potential for growth if obligatory measures are put in place.\n ingestion industry simile information and indorser intelligence services\nThe information and the indorser intelligence services augur that the company is leading in service improvement and delivery. The effect of this is ontogenesis in revenues resulting in profitability.\n\n give 2\n\nMethodologies and Approaches to Costing\n incompatible approaches to saluteing can be put on in this influence. Among them involve; set-back in first out method and last in first out method. The use of these inventory military rank methods of make uping has been employ in the valuation of the companys livestock.\n\nDifferent toll treatment of job, touch and contracts\nThe cost of the different job process and contracts is based on the stimulant and the cost of the labor employ to deliver the services. principal(prenominal) commitment Company provides the cost of its services based on the market fix and the existing g competition.\n\nMarginal cost methodological analysis\nThe use of marginal cost method is use for nobble condition finality making. This is because the companys decisions and the financial condition are not for good altered in the short run. If these decisions were unendingly altered then marginal cost would be blowy for the company. However, there are some financial conditions within the Main committal company that would require permanent decisions to be made. In this case, the company involves the input of financial experts to offer it on the outflank cost methodology to adopt.\n\nTraditional working(a) cyphers\nBudgeting is the process of financial allocation of re kickoffs by companies for their daily activities. It involves assignment finance to the study activities of the company depending on the available source of finance. Main Freight Company is control by the yearbook budget during cash in hand allocation for proceedings such as capi tal expenditure, stock replenishment and aspects of protean costs.\n\nProblems and motivational impact of useable annual budgets\nThe problems associated with the annual budgets let in the ability of the budget to meet the planned m horizon. There is uncertainty whether the allocated finance would be replete to cover the picky budget time (Pogue 2010). Many times when the time skeleton in the closet is not met, the company usually set abouts superfluous funding from orthogonal sources in order to fund essential activities or transactions. The implication of this is that capacious margin liability increases thereby burdening the balance sheet.\n\nAlternatives to functional budgets\nThe budget use by the company comprises the operating expenses, the cost implications of the day to day activities as tumefy as former(a) relevant costs.\n\nPART 6\nTypes and sources of gamble\nThere are several sources of stake that the organization faces. These include hedging gamble of exposure, credit entry jeopardy, operational happen and market insecurity. hedging take chances occurs as a result of the difference of prices in the portfolio market. This risk occurs when difference in the prices of shares exists in the global logistics firms. This difference also exists in the short term avocation safekeeping securities.\n\nMethods of act uping with risks item to oversea operations\nThe most authoritative strategies of dealing with risk specific to overseas operations include; hedging. This can be affected finished the forwards derivatives, short option and the long option. Depending on the nature of the risk, the company should seek to adopt a risk outline that will ensure that the overtakes on the investiture are achieved. This company has sought to deal with risk by dint of hedging. It achieves this by use of futures and forward derivatives.\n\nTechniques for evaluating and managing the risk\nThe company should dishearten all the risks. This helps to keep the stability of the Australian dollar and thusly stability in the countrys enliven rate. The enkindle bearing securities will be captivating to the local Australian investors (Geddes 2012).\nInterpretation of risk maps and surveys\nSurveys indicate that the level of risk in the Australian market depends on the coronation that the individual company is undertaking. In this scenario, the investing in variety and technology by Main freight Company is little risky compared to investment in securities. The return on investment by the company is definite and is positive. It is unvarnished from the companys balance sheet and early(a) financial statements that the company is making a profit as compared to former(a) companies within the logistics industry.\n\nPreparing and utilize risk focussing reports\nThe reports on risk management indicate that the company should bar risk by hedging scheme in order to stabilize the interest fluctuations. Hedging system shoul d fully incorporate hedging of securities. This helps to asperse the credit risk that the company is potential to incur as a result of the uncertainty in the return of the interest bearing securities.\n\n ending and recommendation\nThe decision by Main Freight Company to invest in technology is as a way of improving its efficiency. This has increase the companys competitive returns over the other global players. The capital of Singapore fright and the Asiatic freight are both competitors in the logistic industry and according to Holmes (2008); technology is the effective mechanism of competition. In this regard, Main freight has automate its services by investing in new technology leading to service improvement. The investment of new technology by Main freight is a epoch-making move that should be adopted by other competitors since it leads to active service delivery, and increases the companys revenue.'