Planning and Controlling Capital Expenditures Essay

Planning and Controlling Capital Expenditures - Essay Example Thus most companies hold on capital expenditures every year, in an attempt to continuously upgrade and improve things like facilities, vehicles, buildings and equipment. A capital expenditure is considered deductible since it represents an improvement to the business and this deducted takes place over a specific life of an item, after than all at once as in the case of repair or maintenance expenditures. Sometimes it is cumbersome to determine the difference that exists in capital expenditure and a routine expense. Generally capital expenditure improves the worth of an asset while if it keeps the asset in working condition, it is referred to as routine expense. Hence, engaging in capital expenditure is a routine way of upgrading and expanding business whether done on a small scale or on a large scale (Pike and Neale, 2003). Large firms or corporations may acquire extra companies, as in the case of automotive giant which purchases another car manufacturer. Consequently, allowances are made in the budget of the company for the capital expenses, including the ones involving the replacement of items which are no longer repaired. Capital expenditures thus normally yield benefit over a long period of time resulting into fixed assets. The resource constraint is a frequent phenomenon of all the economic activities in business. In addition, when a firm is able to spend on specific items it is not willing to do so (Nice, 2002). Therefore, a systematic screening is established to accept or reject the investment proposal. Investment proposal are divided into two groups that is: Mutually exclusive proposals and independent proposals. Mutually exclusive proposals are proposals that have an alternative of doing the same thing. If one alternative is selected then the other one must be rejected for example: if in plant material facilities are required, they are grouped according to their economic benefits. The economic benefits of each of the proposal will be evaluated and the one with the contributing maximum economic benefits is chosen while the rest with less economic benefits are rejected (Pike and Neale, 2003). Ind ependent proposals are those items of capital expenditures that are always considered for different types of projects whose accomplishments are highly needed. In this case all independent proposals are independent of each other and are worthy for implementation. However, due to financial difficulties, priorities are assigned to each proposal according to the gravity of the need of the organization for example: in line with the material handling equipments, instruments such as machines for weighing, packing, stamping may be required(Cotts, 2007). Thus for mutually exclusive proposals the decision criterion is accept or reject while for independent proposals the decision criterion is mainly based in ranking. The decision taken is based on the methods of analyzing the capital budgeting decisions. The environment of capital expenditure proposals are widely grouped into: Expansion, Replacement, Diversification and Strategic proposals. Expansion proposals involve the capital expenditure t o boost the production capacity within the same line of production (Shah, 2007).The investments are basically made in the familiar areas of activity as it involves minimal business risk as compared to diversification, however, larger risk than replacement expenditure. Replacement capital expenditure implies replacement of old machinery by a new one or a modern one. This replacement only

The Gender Recognition Act Is it welcome Essay Example | Topics and Well Written Essays - 8000 words

The Gender Recognition Act Is it welcome - Essay Example An analysis of the reasons why transsexuals feel that they were born in the wrong gender or why they feel the need to change to the opposite gender will also be covered. This will include looking at the way society reacts to those who have undergone gender reassignment or are about to undergo such treatment, as well as the way in which society treats those who have chosen to live as the opposite sex without having the surgical procedure. Often transsexuals face ridicule from family and friends and society as a whole tends to mock those that are either in the process of changing gender or have fully undergone the transition. The study will look at the change in attitudes over the last few decades to establish whether transsexuals are more readily accepted then previously or whether they are still ostracised and ridiculed and held up as objects of scorn. To give a full picture of how transsexuals are treated the study will divide society into different age groups and classes to establish whether people of a younger generation are more accepting of transsexualism as well as whether class also plays a part the acceptance or non-acceptance of transsexuals. The study will conclude with an in depth analysis of whether the Gender Recognition Act is a welcome piece of legislation. This will take account of the attitudes of those who have undergone the transition as well as those who have chosen to live as the opposite gender without having gender reassignment and compare their views of the Act with society as a whole. There will be a discussion centred on those who feel that the Act is necessary and those that are totally opposed to the Act. It will also cover the reasons why these groups are either for or against the Act and will answer the topic posed of whether the Act is welcome. Modern diagnosis of transsexualism began in the 19th century after a study conducted by a