A Case Study on Cost Estimation and Profitability Analysis

ISSUES IN ACCOUNTING EDUCATION Vol. 26, no. 1 2011 pp. 181200 Ameri cigargont news report connectedness DOI 10. 2308/iace. 2011. 26. 1. 181 A character reference deal on appeal bringing close together and masterfessional? tability Analysis at Continental Airlines Francisco J. roman print ABSTRACT This oddb only exposes students to the application program of backsliding analyses to be wontd as a tool pursuant to understanding damage behavior and forebodeing in store(predicate) be exploitation publicly lendable info from Continental Airlines. Speci? cally, the fountain foc manipulations on the grating ? nancial situation faced by Continental as a result of the late(a) ? ancial crisis and the challenges it faces to re main(prenominal) masterfessional? side step. It and therefore(prenominal) highlights the grandness of reducing and controlling be as a viable strategy to quicken masterfessionalfessional person? tability and how fixation synopsis spa te assist in this pursuit. scholars argon con barrierinous presented with every quarter selective reading for unlike categories of be and some(prenominal) po cristaltial comprise proceeds one woods, which they moldiness(prenominal)iness mathematical function to perform reversions on direct damages exploitation a phase of greet device device drivers. They moldiness then use their reverse results to forecast direct(a) be and conduct a pro? tability depth psychology to project every quarter pro? ts for the forthcoming ? scal year.Finally, students must(prenominal) correspondmarize the main results of their abbreviation in a memorandum intercommunicate to Continentals heed, providing recommendations to reestablish pro? ts. In detail, the concept of mixed greet government agencys is reinforced, as is the understanding of the steps take to perform reverse synopsis in Excel, interpreting the reversion output signal, and the rudimentary regular assu mptions in regression summary. The en possibility has been tried and true and s soundly up received in an correspond(a) damage accounting course and it is adapted for twain undergraduate and graduate students. Keywords approach estimation pro? ability compend equal behavior regression analyses greet functions. entropy Availability altogether data be from public sources and are in stock(predicate) in hard copy within the case. Data are alike open in electronic form by the author upon request. INTRODUCTION n 2008, the aged focusing team at Continental Airlines, commanded by Lawrence Kellner, the Ch channeliseman and Chief executive director Of? cer, convened a special meeting to converse the ? rms latest quarterly ? nancial results. A bleak situation lay forrader them. Continental had incurred an operate loss of $71 million dollarsits second consecutive quarterly earnings de-I Francisco J. roman print is an Assistant professor at Texas Tech University. I convey Kent St. capital of South Dakota editor , Michael damagea, and two nameless raiseees for their suggestions on previous versions of the case. Editors note Accepted by Kent St. Pierre Published Online February 2011 181 182 Roman cline that year. Likewise, passenger mickle was signi? bunstly d take, dropping by nearly 5 percentage from the prior years quarter. Continentals senior caution needed to act promptly to annul this trend and return to pro? tability. cosmos the fourth largest airline in the U.S. and eighth largest in the homo, Continental was perceived as one of the close to ef? ciently run companies in the airline manufacture. Nonetheless, 2008 brought unprecedented challenges for Continental and the whole attention as the United States and lots of the adult male was heading into a arduous stinting recession. Companies press clipping deeply into their budgets for avocation travel, the highest yielding component of Continentals chalk up receipt s, unitedly with a resembling downward trend from the leisure and free-and-easy sector, combined to sharply edit integrality revenue.Con up-to-the-minute with this revenue decline, the charge of spring arouse soared to record levels during 2008. 1 Thus, while revenue was decreasing, Continental was paying almost doubly as ofttimes in elicit approach. Interestingly, give notice make up surpassed the ? rms salaries and reward as the highest make up in Continentals be structure. This obviously had a negative stupor on the keister line, squeezing even advertise the already strained pro? t margins. The brain for a quick recovery in the U. S. economy and, consequently, an upturn in the demand for air travel in the short term did not calculate likely.Continentals essential forecasts indicated that a throw out decline in passenger rule book should be evaluate by dint ofout 2009, with a recovery in travel possibly occurring by the center of attention of 2010. To summarize, adverse economic conditions in the U. S. , join with the rise in burn down address, were force down Continentals pro? ts and relief was unlikely through the predictable coming(prenominal). THE DECISION TO REDUCE FLYING mental object AND THE IMPACT ON in operation(p) be Given the situation described above, charge needed to act swiftly to construct pro? tability. Several strategic options were evaluated.Since the U. S. and much of the world was facing a voiceless recession, the prospect for growing revenues by all(prenominal) raising air aliments or passenger volume seemed futile. Contrary to raising revenue, Continentals managers believed that raising fares could strengthly erode incoming revenues beyond the present level. Discounting fares did not seem a plausible resoluteness each, because precondition the severity of the economic situation a fare cut could fall short in stimulating additional passenger demand and lead to lowering revenues. Thus, becau se forethought anticipated that revenues would remain ? t for most of the year, the and viable short-term solution to restoring pro? ts was a substantial and swift reducing in run speak to. This could most effectively be accomplished in two ways. First, through a lessening in ? ying advocate adjusted to fulfil projected passenger demand. With this in mind, Continentals management agreed to come down ? ying efficiency by 11 percent on domestic and world(prenominal)ist routes. 2 As a result of this action, Continental would eliminate the least pro? table or unpro? table ? ights and, accordingly, would ground some(prenominal) planes in the ? eet.Management anticipated that this determination would tailor several of the ? rms run be. asunder from this, Continental could discover further reductions in be by implementing several personify-cutting initiatives and through operational ef? ciencies. For example, management pro- 1 2 To illustrate, jet furnish is tied t o the expense of oil color and, over the past year, oil scathes surged from about $70 to $135 per barrel. Consequently, the price of jet give the axe sum upd markedly, from an sightly out of $1. 77 per gallon to $4. 20 by the mid-summer of 2008. Speci? cally, on June 13, 2008, Continental Airlines announced that it think to compress its ? ght message by 11 percent. By shrinking capacity, Continental pass judgment to reduce the human body of domestic and international ? ights from its three major hubs in Houston, Cleveland, and Newark Maynard 2008 . Issues in accountancy command Ameri house chronicle association tawdriness 26, No. 1, 2011 A grapheme fill on Cost friendship and professional? tability Analysis at Continental Airlines 183 jected that it could achieve reductions in rider Services expenses by consolidating several tasks during passenger check-in and by reducing solid food and beverage waste served during ? ights. Additionally, the ? m could reduce r espective(a) miscellaneous expenses through targeted cuts in discretionary spending. In sum, to close the scuttle in pro? tability, Continentals strategy was geared toward slashing direct(a) be by cutting capacity and through aggressive identi? cation and implementation of approach-cutting initiatives. The side by side(p) step would be for management to get it on precisely how their conclusion to downsize capacity would impact the ? rms succeeding(a) in operation(p) price, and excessively come upon speci? c areas in which the ? rm could achieve additional monetary value reductions. Additionally, the cost abstract would help forecast the ? ms direct be and projected pro? ts or losses for the upcoming ? scal year. However, earlier we can proceed with such(prenominal)(prenominal) analysis, an interrogation of how the confused categories of Continentals be yield is in order. Before we begin, let us prepare with an overview of the airline industry and its competitive landscape, and an understanding of why cost behavior bears particular relevance in this case. Relative to another(prenominal) industries, airlines are a very dif? cult line of work to manage. In particular, they are undecided to tremendous risks brought by volatility inherent in their affair model, as they deal with high ? ed be, labor unions, instability in sack prices, weather and natural disasters, passenger safety, and certificate department regulations. These expressions bring a large warhead to airlines cost structures. more(prenominal)over, competition within the industry is ? erce the proliferation of discount carriers, such as south-west Airlines and, most juvenilely, Jet Blue, and the end of fare regulation in 1978, has hindered airlines pricing power and their ability to spur revenues. For these reasons, cost containment is a critically important aspect of pro? tability in this industry.In order for Continental to refer pro? tability in this coarse purlieu of weak demand for air travel, it must be able to contain its operating be, especially its massive ? xed be, which are telescopic in several ways. For example, salaries for pilots, ? ight attendants, and mechanics, as rise as aircraft leasing cost, are typically ? xed, interpolate little with shifts in passenger volume. Because ? xed costs typically embody the amount of operating capacity of a ? rm, they are normally referred as capacity costs. Since ? xed costs do not self-adjust to ? ctuations in passenger volume, the only way in which they can be decreased or increased is if management adjusts them in accordance to the level of operating capacity. In contrast, other costs, such as passenger suffices and reservation and scattering costs, be guard as varying and would self-adjust with variations in volume or operating activity. Hence, to judge the impact of this strategic decision to alter Continentals cost structure, and grade the areas that could achieve the greatest r eduction in costs, we must resolve how Continentals operating costs behave and what drives them.In what follows, we check off how to entertain regression analyses to break down cost behavior and forecast in store(predicate) costs, and then use that intimacy to assess how the reduction in ? ying capacity would affect Continentals operating costs and pro? tability in the near term. ESTIMATING be exploitation REGRESSION ANALYSES The previous discussion highlighted the splendour of examining the behavior of Continentals operating costs to pave the way for a cost and pro? tability analysis using regression analysis. Regression analysis is a powerful statistical tool that is frequently used by ? ms to examine cost behavior and predict future costs. The idea behind regression analysis is straightforward historical data for costs, and the several(a) activities that could potentially drive operating costs, are inserted into a mathematical calculation which yields the average out am ount of swop in that particular cost that has occurred over time. Average determine give upd by regression calculations may then be applied to consider future change that will occur in that cost given a one-unit change in one or Issues in accountancy Education chroma 26, No. 1, 2011 American invoice railroad tie 184 Roman ore of the barter activities which drive that cost. 3 More precisely, in a regression model, cost is a function of one or more business activities or factors underlying a business operation. Simply put, the business activities are the drivers of operating costs. Therefore, since activities drive costs, our ? rst step in the estimation of a cost function is to identify the underlying activities or other potential factors that drive the cost in questionthe cost drivers. This requires huge knowledge of the business operation. In the case of Continental Airlines, the potential drivers of operating costs vary greatly.For instance, as previously noted, the tak ings of passengers that Continental ? ies may drive the costs associate to rider Services. Likewise, Aircraft alimony and Repairs costs could be driven by the number of aircraft in the ? eet and by the level of ? ying capacity set by Continental i. e. , uncommitted tush miles . In synthesis, to predict how Continentals operating costs would be affected by the decision to reduce capacity, and to identify those areas in which additional business office is available for cost cutting, we need to identify which costs in this ? rms cost structure behave as variable, ? ed, or mixed in which elements of both variable and ? xed are observable . Equally important, we should also identify the speci? c drivers if any of from each one cost. Your job is to assist management in their quest to revitalize pro? tability at Continental Airlines. Speci? cally, you must conduct regression analyses to examine cost behavior and then use this information to forecast operating costs and pro? tabilit y for the upcoming year. As part of your cost analysis, you should investigate how the decision to cut ? ying capacity would impact the ? rms future operating costs and, every bit important, identify those speci? expense categories or operating areas in which this ? rm could attain additional costs saving by implementing cost-cutting initiatives. Your conclusions should be outlined in a memorandum direct to Continentals Executive management team. You are nominated following(a) with a commentary of Continentals operating costs and the potential drivers of costs so you can conduct regression analysis to estimate the corresponding cost functions. To help you in estimating the regressions, a comprehensive set of operating instructions for performing regression analysis using Microsoft Excel is provided in the Appendix.Immediately side by side(p) the definition of costs, a series of questions is provided that should help run your analysis. Additionally, to help you estimate your r egressions, Exhibit 1 presents past quarterly data for all of the above expenditures for the pointedness of January 2000 through declination 2008, while Exhibit 2 provides quarterly operations data for the same period of time. CONTINENTALS OPERATING cost AND POTENTIAL make up DRIVERS As shown in Exhibit 1, there are ten categories of operating costs.These include salaries and engage, aircraft fuel and link taxes, aircraft rentals, airport fees, aircraft maintenance and repairs, derogation and amortization, dispersal costs, passenger swear outs, regional capacity corrupts, and other expenses. Of these, some represent a unmarried expense item. For example, the cost of aircraft rentals and airport fees together comprise a single cost item. some other costs represent cost crime syndicates comprising several cost items. Such is the case of passenger services and other expenses. The following provides a detailed description of each cost, along with the potential cost drivers. 3 4 For ease in exposition, cost functions and regression analyses are discussed brie? y here. For further insight on cost functions and on the mechanics of regression analyses, I refer the reader to the Appendix. A cost driver represents a particular business activity, which normally tends to have a cause-and-effect relationship with a given cost. For example, for airlines, a typical cost driver for landing fees is the number of nonchalant ? ights carried by the airline, as well as the number of passengers ? own. An increase decrease in the number of ? ights or passengers ? own would increase decrease landing fees.Issues in report Education American score fellowship Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines 185 EXHIBIT 1 REVENUES AND OPERATING monetary valueS DATA Obs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Obs. 1 2 3 4 5 6 fulfilment 1Q-2000 2Q-2000 3Q-2 000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-2005 2Q-2005 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 Q-2008 Revenues open fire Salaries and Wages expertness Purchases Aircraft Rentals land Fees 2,277,000,000 334,000,000 672,000,000 206,000,000 2,571,000,000 313,000,000 719,000,000 210,000,000 2,622,000,000 354,000,000 748,000,000 215,000,000 2,429,000,000 392,000,000 736,000,000 213,000,000 2,451,000,000 345,000,000 758,000,000 214,000,000 2,556,000,000 349,000,000 800,000,000 223,000,000 2,223,000,000 322,000,000 779,000,000 230,000,000 1,739,000,000 213,000,000 684,000,000 236,000,000 1,993,000,000 208,000,000 732,000,000 228,000,000 2,192,000,000 254,000,000 746,000,000 231,000,000 2,178,000,000 76,000,000 743,000,000 227,000,000 2,039,000,000 285,000,000 738,000,000 216,000,000 2,042,000,000 347,000,000 778, 000,000 223,000,000 2,216,000,000 302,000,000 762,000,000 224,000,000 2,365,000,000 316,000,000 778,000,000 225,000,000 2,247,000,000 290,000,000 738,000,000 158,000,000 224,000,000 2,307,000,000 333,000,000 688,000,000 317,000,000 220,000,000 2,553,000,000 387,000,000 711,000,000 328,000,000 222,000,000 2,602,000,000 414,000,000 703,000,000 347,000,000 224,000,000 2,437,000,000 453,000,000 717,000,000 359,000,000 225,000,000 2,505,000,000 470,000,000 715,000,000 353,000,000 227,000,000 2,857,000,000 75,000,000 649,000,000 382,000,000 229,000,000 3,001,000,000 684,000,000 646,000,000 406,000,000 234,000,000 2,845,000,000 714,000,000 639,000,000 431,000,000 238,000,000 2,947,000,000 672,000,000 661,000,000 415,000,000 245,000,000 3,507,000,000 744,000,000 791,000,000 454,000,000 248,000,000 3,518,000,000 858,000,000 743,000,000 475,000,000 249,000,000 3,156,000,000 760,000,000 680,000,000 447,000,000 248,000,000 3,179,000,000 684,000,000 726,000,000 430,000,000 248,000,000 3,710,0 00,000 842,000,000 821,000,000 444,000,000 248,000,000 3,820,000,000 895,000,000 836,000,000 446,000,000 249,000,000 3,523,000,000 33,000,000 744,000,000 473,000,000 249,000,000 3,570,000,000 1,048,000,000 729,000,000 506,000,000 247,000,000 4,044,000,000 1,363,000,000 704,000,000 589,000,000 246,000,000 4,072,000,000 1,501,000,000 765,000,000 553,000,000 244,000,000 3,471,000,000 993,000,000 760,000,000 425,000,000 240,000,000 129,000,000 138,000,000 133,000,000 132,000,000 141,000,000 153,000,000 139,000,000 148,000,000 161,000,000 160,000,000 163,000,000 149,000,000 152,000,000 152,000,000 165,000,000 151,000,000 160,000,000 163,000,000 171,000,000 160,000,000 171,000,000 181,000,000 182,000,000 174,000,000 185,000,000 198,000,000 195,000,000 86,000,000 193,000,000 xcl,000,000 209,000,000 198,000,000 207,000,000 210,000,000 225,000,000 210,000,000 consummation dispersal Costs Aircraft Maintenance dispraise Passenger Services Other Expenses 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2 001 2Q-2001 248,000,000 261,000,000 255,000,000 217,000,000 243,000,000 230,000,000 159,000,000 171,000,000 167,000,000 149,000,000 160,000,000 162,000,000 95,000,000 98,000,000 102,000,000 107,000,000 105,000,000 111,000,000 85,000,000 91,000,000 97,000,000 89,000,000 91,000,000 96,000,000 286,000,000 284,000,000 288,000,000 277,000,000 318,000,000 295,000,000 (continued on next page)Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting necktie 186 Obs. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Obs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Roman bound Distribution Costs Aircraft Maintenance Depreciation Passenger Services Other Expenses 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-2005 2Q-2005 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 4Q-2008 194,000,000 142,000,000 172,000,000 158,000,000 138, 000,000 124,000,000 27,000,000 138,000,000 131,000,000 135,000,000 137,000,000 140,000,000 139,000,000 136,000,000 138,000,000 154,000,000 154,000,000 142,000,000 160,000,000 178,000,000 157,000,000 155,000,000 161,000,000 176,000,000 171,000,000 174,000,000 182,000,000 194,000,000 182,000,000 159,000,000 142,000,000 104,000,000 114,000,000 119,000,000 119,000,000 124,000,000 133,000,000 126,000,000 135,000,000 115,000,000 112,000,000 102,000,000 107,000,000 93,000,000 112,000,000 106,000,000 116,000,000 121,000,000 127,000,000 140,000,000 140,000,000 140,000,000 144,000,000 169,000,000 166,000,000 142,000,000 159,000,000 167,000,000 52,000,000 135,000,000 120,000,000 131,000,000 106,000,000 112,000,000 112,000,000 114,000,000 116,000,000 110,000,000 110,000,000 108,000,000 104,000,000 105,000,000 104,000,000 102,000,000 99,000,000 98,000,000 97,000,000 95,000,000 96,000,000 97,000,000 99,000,000 99,000,000 99,000,000 101,000,000 106,000,000 107,000,000 106,000,000 108,000,000 112,0 00,000 111,000,000 89,000,000 71,000,000 77,000,000 73,000,000 78,000,000 68,000,000 70,000,000 73,000,000 81,000,000 73,000,000 69,000,000 76,000,000 84,000,000 77,000,000 77,000,000 84,000,000 91,000,000 80,000,000 82,000,000 90,000,000 97,000,000 87,000,000 90,000,000 9,000,000 105,000,000 95,000,000 96,000,000 107,000,000 113,000,000 91,000,000 121,000,000 166,000,000 382,000,000 454,000,000 276,000,000 277,000,000 320,000,000 91,000,000 250,000,000 455,000,000 304,000,000 279,000,000 287,000,000 278,000,000 316,000,000 280,000,000 282,000,000 305,000,000 293,000,000 323,000,000 313,000,000 333,000,000 340,000,000 357,000,000 357,000,000 328,000,000 356,000,000 427,000,000 461,000,000 372,000,000 Period Total Aircraft 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 514 522 535 522 548 557 501 522 538 570 570 554 562 70 OPERATIONS AND COST DRIVER DATA Leased Aircraft Flights Passengers ready(prenominal) Seat Miles 4 03 410 414 398 406 416 377 393 400 404 401 410 419 428 98,820 97,871 97,967 98,378 98,590 99,018 98,564 81,109 81,883 82,815 81,737 78,809 75,178 75,617 11,201,000 12,084,000 12,155,000 11,456,000 11,220,000 12,256,000 11,254,000 9,508,000 12,062,000 13,099,000 13,006,000 12,874,000 11,518,000 13,044,000 20,951,000,000 21,384,000,000 22,356,000,000 21,409,000,000 21,459,000,000 22,813,000,000 21,994,000,000 18,219,000,000 20,375,000,000 22,286,000,000 22,626,000,000 21,054,000,000 20,843,000,000 21,241,000,000 on hand(predicate) SeatMiles regional 1,767,000,000 2,073,000,000 (continued on next page) Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines Obs. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Obs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Period Total Aircraft 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-20 05 2Q-2005 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 4Q-2008 187 OPERATIONS AND COST DRIVER DATALeased Aircraft Flights Passengers procurable Seat Miles 570 579 586 587 592 594 598 604 611 622 630 634 648 648 630 625 631 628 641 630 653 632 428 434 437 440 445 448 453 459 466 477 483 484 482 480 446 418 415 415 414 390 412 397 76,297 75,650 74,859 75,816 74,211 74,443 71,494 74,651 74,630 75,886 74,962 77,729 77,468 79,030 78,601 82,582 81,118 80,850 76,719 76,096 78,599 76,000 Available Seat Miles Regional 13,727,000 13,769,000 12,810,000 14,558,000 14,862,000 14,252,000 14,122,000 15,540,000 15,905,000 15,448,000 15,594,000 17,596,000 17,328,000 16,601,000 16,176,000 18,120,000 17,901,000 16,733,000 16,440,000 7,108,000 17,962,000 15,183,000 22,819,000,000 21,907,000,000 22,670,000,000 24,150,000,000 24,674,000,000 23,588,000,000 23,585,000,000 25,482,000,000 26,833,000,000 25,720,000,000 26,117,000,000 28,259,000,000 29,262,000,000 27,280,000,000 27,250,000,000 29,592,000,000 30,346,000,000 28,550,000,000 28,376,000,000 30,304,000,000 30,383,000,000 26,448,000,000 1,605,000,000 2,980,000,000 2,400,000,000 2,603,000,000 1,999,000,000 3,408,000,000 2,740,000,000 3,026,000,000 3,112,000,000 3,095,000,000 3,082,000,000 3,374,000,000 3,503,000,000 3,292,000,000 3,126,000,000 3,177,000,000 3,193,000,000 3,104,000,000 3,098,000,000 ,450,000,000 3,390,000,000 3,046,000,000 Period Passenger Miles Flown Employees Fuel Price Fuel Consumed 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-2005 2Q-2005 15,005,000,000 16,491,000,000 17,325,000,000 15,340,000,000 15,114,000,000 17,053,000,000 16,206,000,000 12,767,000,000 14,867,000,000 16,489,000,000 16,960,000,000 17,252,000,000 14,352,000,000 16,129,000,000 18,041,000,000 16,412,000,000 16,255,000,000 18,735,000,000 19,922,000,000 18,239,000,000 18,112,000,000 20,292,000,000 45,000 45,500 46,000 5,944 38,396 39,000 39,500 39,461 40,229 41,011 41,809 40,244 38,960 39,000 39,500 39,000 38,240 37,496 36,766 38,255 41,831 45,742 $0. 829 $0. 797 $0. 865 $0. 885 $0. 856 $0. 815 $0. 824 $0. 826 $0. 644 $0. 723 $0. 760 $0. 740 $1. 029 $0. 881 $0. 857 $0. 872 $1. 041 $1. 787 $1. 199 $1. 190 $1. 453 $1. 670 377,000,000 386,000,000 398,000,000 372,000,000 369,000,000 391,000,000 373,000,000 369,000,000 308,000,000 332,000,000 340,000,000 316,000,000 305,000,000 308,000,000 330,000,000 314,000,000 320,000,000 347,000,000 345,000,000 321,000,000 324,000,000 344,000,000 (continued on next page) Issues in Accounting EducationVolume 26, No. 1, 2011 American Accounting Association 188 Roman Period 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Passenger Miles Flown Employees Fuel Price Fuel Consumed 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 4Q-2008 Obs. 21,762,000,000 20,033,000,000 2 0,336,000,000 23,367,000,000 24,042,000,000 21,772,000,000 21,450,000,000 24,623,000,000 25,422,000,000 22,670,000,000 22,280,000,000 24,836,000,000 24,746,000,000 20,825,000,000 50,018 42,200 42,600 43,450 41,500 38,033 41,800 43,300 41,400 39,640 43,000 40,100 43,500 42,490 $1. 880 $1. 776 $1. 904 $2. 10 $2. 215 $2. 064 $1. 895 $2. 079 $2. 206 $2. 499 $2. 797 $3. 856 $3. 450 $2. 925 364,000,000 344,000,000 347,000,000 375,000,000 387,000,000 362,000,000 361,000,000 395,000,000 406,000,000 380,000,000 375,000,000 389,000,000 395,000,000 339,000,000 EXHIBIT 2 PROJECTIONS OF REVENUES AND OPERATING ACTIVITY FOR YEAR 2009 Variable Revenues Available empower miles Available regional roll in the hay miles Number of passengers Number of planes Number hired planes Price of fuel per gallon Gallons of fuel consumed Quarter 1 Quarter 2 Quarter 3 Quarter 4 $2,962,000,000 26,323,000,000 2,971,000,000 14,408,000 634 398 $1. 82 403,000,000 2,767,000,000 28,007,000,000 3,044,000,000 16,348,000 617 394 $2. 07 430,000,000 $2,947,000,000 28,933,000,000 3,130,000,000 16,795,000 604 380 $1. 99 369,000,000 $2,462,000,000 26,291,000,000 3,002,000,000 15,258,000 601 379 $1. 98 479,000,000 All ? nancial and operational data represent quarterly data for the quarter beginning January 2000 honoring 1 through December 2008. Data have been compiled from Continentals 8-K and10-K reports, submitted to the Securities and trade Commission. De? nitions of Operations Variables Available seat miles the number of seats available multiplied by the number of miles ? wn Available regional seat miles available seat miles on regional routes Number of passengers number of paying passengers ? own Number of planes number of planes in the ? eet, including regional routes aircraft Number of leased planes number of leased planes Price of jet fuel average price per gallon of jet fuel in the individual quarter and Gallons of fuel consumed number of gallons of fuel consumed in the respective quarter. Sal aries and Wages This account represents costs associate to salaries and wages, as well as kick bene? ts, of Continentals workers. These include salaries for pilots and wages for ? ght attendants and ground crew, as well as wages for Continentals mechanics. Additionally, a signi? cant piece of ground of this salary crime syndicate represents wages of reservation specialists, customer service representatives at airports, and the salaries for administrative and last military unit e. g. , ? ight schedulers, technology Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines 189 personnel, accountants, and percentage managers . A possible cost driver of salaries is the available seat miles. Aircraft Fuel and connect Taxes This represents the cost of jet fuel and upholdd fuel taxes. Jet fuel cost tends to be driven by the current price of jet fuel and gallons of jet fu el consumed. Aircraft Rentals These are expenses for capital leases of aircraft. The main driver is the number of leased planes in Continentals ? eet, including regional jets operated on behalf of Continental by four regional airlines under various capacity leverage agreements. Airport Fees Represents landing fees and passenger security fees paid to the various domestic and international airports where Continental ? ies.Landing fees are driven by the number of passengers. Aircraft Maintenance and Repairs These are expenses associated with the service and maintenance of planes. These include expenses related to plan maintenance, spare parts and materials, and airframe and engine overhauls. The main drivers of these costs are the number of planes in the ? eet and the number of miles ? own. Depreciation and Amortization This represents derogation and amortization expenses of aircraft, ground equipment, buildings, and other property. It must be emphasized that the largest portion of d epreciation expense relates to the depreciation of aircraft.Although depreciation expenses are driven by the acquisition cost of Continentals capital assets, depreciation is greatly in? uenced by both company policy and accounting principles, such as the depreciation method, that a ? rm adopts. Distribution Costs These expenses represent credit bank bill discount fees, booking fees, and travel agency commissions, all of which are affected by passenger revenue. Therefore, the driver of these costs is fit revenue. Passenger Services This is also a cost pool that includes expenses related to impact and servicing passengers prior to take-off, during ? ight, and after arrival at their destination.A signi? cant portion of these costs is generated by Continentals correction Services Division, the main function of which is to provide service to planes prior to take-off. Some of these expenses relate to checking in passengers, handling luggage on and off planes, cleaning planes, stockin g planes with beverage and food, and fueling the aircraft prior to take-off. The potential cost driver of these costs is the number of passengers. Regional Capacity Purchases These are costs related to the purchase of regional routes served by several regional airlines on behalf of Continental ExpressJet, Chautauqua, CommutAir, and Cogan .These costs are 5 Available seat miles is figure as the number of seats available for passengers multiplied by the number of plan miles those seats are ? own. Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting Association 190 Roman driven by the combined ? ying capacity of the four airlines available regional seat miles. Other Expenses This is a cost pool that comprises many ancillary and discretionary expenditures, including technology expenses, security and outside services, general supplies, and advertise and promotional expenses.Further, this cost pool contains various special charges for gains and losses from the sal e of retired aircraft and costs of future leases. Given the large change of miscellaneous items, there is no unsnarl driver of these expenses however, a large portion of them, such as advertising and promotional expenses, are driven by total revenue. DISCUSSION QUESTIONS 1. 2. 3. 4. 5. 6 using the quarterly data for operating costs and the various cost drivers of costs provided by Exhibits 1 and 2, estimate regression for cost stratum of costs.Then, write the appropriate cost function for each category of cost and then interpret your regression results. Based on your regression results, where do you see the largest reductions in costs if ? ying capacity is lowered by 11 percent? Also, in which areas do you see opportunities to achieve further cost reductions and why? Exhibit 2 provides a quarterly forecast of revenues, jet fuel prices,6 and the projected operating activity for 2009. Using the information from your regressions and the forecast information provided in Exhibit 2, e stimate Continentals operating costs and expected pro? for the upcoming ? scal year. Based on the results of your pro? tability analysis, what can you say about the ? rms ? nancial outlook? Would Continental be earning an operating pro? t in 2009? If not, what should Continentals management do to restore pro? tability in 2009? Summarize your conclusions in a memorandum address to Continentals CEO. In the memo, you must distinctly communicate your main ? ndings, emphasizing speci? c areas in which you see the greatest potential to achieve further reductions in costs and, based on your pro? tability analysis, sum up the ? nancial outlook for 2009.You should note that Continental has entered into several future contracts to hedge the heart-to-heart risks of rising fuel prices. The projected costs for jet fuel on scupper re? ects the value of the various future contracts which guarantee Continental a ? xed price for jet fuel at various maturity dates in 2009, as well the estimated ga llons of fuel that Continental plans to use during the year. Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines 191 CASE LEARNING OBJECTIVES AND performance GUIDANCECost estimation is a fundamental aspect of managerial/cost accounting Datar et al. 2008 Eldenburg and Wolcott 2005 . For example, cost estimation is critical for developing budgets, displace up cost standards, inventory valuation, harvest-feast costing, and many other applications. Ultimately, ? rms ability to accurately predict production and operating costs has a profound impact on decision-making. Additionally, given the frequency with which ? rms downsize or pass their operations in response to economic or market-wide conditions, knowing how this strategic decision of scaling output impacts ? ms future operating costs, and which tools can facilitate this task, has vex increasingly relevant for ? rms. Nonetheless, despite its enormousness, cost estimation is a topic that merits further discussion in accounting textbooks. Although several managerial/cost accounting textbooks provide rich theoretical discussions of cost estimation, including cost behavior, cost functions, and, to some extent, regression analyses, the examples that are typically used to illustrate such an important concept often deprivation a sense of authenticism. Either ? titious data are commonly used in cost estimation, or the examples covered become flat to capture certainistic situations faced by ? rms in a real world context. Accordingly, this case aims to close this gap. The objective is to support students in culture how to apply regression analyses to understand cost behavior and forecast future costs using real data from ? rms. The case focuses on the harsh ? nancial situation faced by Continental Airlines as a result of the recent ? nancial crisis and the challenges it faces to remain pro? tab le.It then highlights the importance of reducing and controlling costs as a viable strategy to restore pro? tability, and how regression analysis can assist in this pursuit. Students are next presented with quarterly data for various categories of costs and several potential cost drivers, which they must analyze and then perform regressions on operating costs using a variety of cost drivers. Based on these results, students have to examine how costs behave and then use the regression output to forecast the ? rms operating costs for year 2009. As part of the cost analysis, students must also identify speci? areas in which Continental could achieve the largest cost nest egg as a result of cutting capacity and implementing other cost-cutting measures. Apart from this, they must conduct a pro? tability analysis to project quarterly pro? ts for the upcoming ? scal year. The learning objectives of the case are as follows 1. 2. 3. Students learn to conduct regression analysis in Excel and use this technique to study cost behavior and forecast future costs. Students also learn how to use actual ? rm-level data from public sources for estimating costs, and apply cost estimation in a real world context that involves a widespread decision among ? ms downsizing capacity. Moreover, learning to use public ? nancial information in cost estimation could have implications that reach beyond accounting learning to access public ? nancial information exposes students to the possibilities of applying regression analysis for business analysis in general, including cost and pro? tability analyses. The case requires students to compound their ? ndings in a memorandum addressed to Continentals CEO thus, students are also exposed to re? ning their composition skills in a business panorama. implementation GuidanceThis case is primarily designed for use in an modal(a) managerial/cost accounting undergraduate severalise however, it could also work well in a graduate-level manager ial accounting course, at either the masters level or M. B. A. Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting Association 192 Roman The realistic nature of the setting everyone can easily identify with the business model of airlines makes a particularly benevolent environment for students to learn how regression analyses can be applied in cost estimation in a real-world context.The questions presented in the case include both hardheaded and theoretical questions. As an augmentation of the principles contained in the application of this case, instructors could enhance the student experience by devoting time to reviewing the concepts of cost functions and cost estimation, as well as discussing the fundamentals of regression analyses, so students can be exposed to these concepts prior to receiving the case. Alternatively, students can review these concepts on their own.The Appendix provides a detailed business relationship of cost functions and regression analysis and describes the steps to perform regression analysis in Excel. Additionally, it provides students with broad guidelines to write an effective memorandum. Student Feedback The case was administered to two sections of an upper-level intermediate undergraduate cost accounting class at a major U. S. university. seventy-seven students responded to an evaluation survey to assess whether they alter their understanding of the concepts illustrated in the case, as well as to whether the case illustrated a real world application in predicting operating costs.As shown in Table 1, students agreed that the case enhanced their understanding of the use of regression analyses in predicting future costs base of 4. 17, based on a ? ve-point subdue , the case encouraged them to think critically about the behavior of operating costs in a real world context mean of 4. 03, based on a ? ve-point shell plus, they found the case interesting and recommended it for use in teaching cost estimat ion via regression analyses mean of 4. 07, based on a ? ve-point scale see also Table 2 . Similar positive responses are shown in Table 2. For example, Table 2 reports students knowledge on the use of regression

Google’s Channel Strategy

Googles corporeal strategy can be dual-lane into four segments Product and Marketing strategy, contention strategy, Growth strategy, and Financial strategy. Google has a strategical orientation of immediate policy accent, for example, the play alongs concern for competition associated matters. In other words, Google is more inclined to receive the subscribe to to beat rivals rather than cosmos held up with a strategic policy. Therefore, harvest-festival orientation strategy has an immense sensibility to identify faults and space of rivals and getting in on that point to diminish the competition.They are excessively highly focused on which segments of the pack foodstuff are neglected and would pay their merchandises. This includes whether to expand in a accepted region or pull taboo of an area due to failure to get set goals. The trade strategy is influenced by the approach of product placement. Google would like to flummox the glasses accessible to everyone. It is a eddy that can be used by the mass foodstuff and Google has the background and cats-paws to grocery store winnerfully to those targets. They want to make it useful for totally groups and that means making the invention simple and easy to use.Googles contribute is immensely mounting and is directly associated with the managing of customer relations. Googles made a striking choice to grow by means of their customers because their technical capabilities much(prenominal) as detection of bad practices, customer feedback, information management and result analysis have improved greatly through staying connected to a liege customer base. Through the eyes of the customer, Google has mature through new products and services such as Google Calendar, Groups, Gmail, Docs, Mobile, Maps, Blogger, and more that have all successfully given the customers their satisfaction.Their growth ties in with their devotion to focus on the user and having all else follow. Google k promptlys that they are a explore Company first. This means that Google recognizes what they are outstrip at, and to do that one thing, which is to solve take care problems, to the best of their ability and focus primarily on that. Secondly, they try to improve in the areas that they are somewhat weak in. unless this doesnt mean they lose focus of their strategy of putting their strengths first and amend them to such a degree to spend a penny an everlasting competitive advantage. Googles statistical distribution objective is to increase exposure to the tune markets.We will be exclusively traffic because it encourages marketing bide. We will be subject to work with another company in getting the product out there and making it known while Google doesnt have to bear the whole burden. It also allows Google to be a step leading of its competitors in having a big retail merchant to sell through and having them only affiliated to Google. This gives Google a great advantage everywhere their competitors and separates Google from their competitors. There are three briny goals for distribution. First, Google will have functioning marketing channels within 1 grade after launch.This will allow them to capture and store goods as well as gather information and market inquiry in order to plan and do in exchange. Second, Google will sack up market share in the consumer cell recollect market within 2 years. From this, Google whence poses a challenge towards its competitors by oblation a better performance through introducing an innovative new product and gaining a competitive edge. The last goal is that Google glaze becomes the dominant business communication tool within 3 years. Its a one of a kind product as or right now and getting a head issue allows Google to achieve this objective.Their strategy for differentiation is to gain direct access to business clients to support distribution goals. With goals come key issues that profess the attainment thereof. Goo gle has to create relationships with its channel members. They need to have cooperation and collaboration to create synergy. along with this, proper training and execution of gross sales intensity level to target business market needs to be implemented. Creating such a motivating channel member force will only bring demonstrable rewards towards making this product a success and accomplishing our goal to get it in the hands of those that Google is pursuing.

School Finance Article Analysis

After the secondly World War, there has been a melodramatic increase on shallow finance in the United States. Through the phrase, Guthrie explains roughly of the critical incidents that contributed the considerable increase of the per-pupil expenditures in normal elementary and secondary accomplishment institutions. Upon reading the article, unmatchable should have an catch on how do certain casefuls extend to per student spending in America. few of the factors cited by Guthrie are the constant expansions regarding the operate offered by schools, more pricey narrow down classes on high school students, and supernumerary education programs. Also, Guthrie includes that grants for students from disadvantaged backgrounds and those with disabilities make a contribution to increased costs. In the article, Guthrie suggests that it is actually likely that the increasing expenditure on school finance continues. With this, the author offers whatsoever solutions to be considered to put a checkout or, at the least, control its growth rate. virtually of these are privatization and contracting. Just like the article states about the increasing per student expenditure, school finance in mama is in addition affected by the factors stated earlier. Thus, one can say that Massachusetts is on its way on a more than higher education budget. In the event that the education status in Massachusetts impart continue (that is, its schools productivity is increased), there can be a possibility that the trend will snap, thus making the funds for public elementary and secondary schools could be minimized.

Reprocudtive Health Bill

Chelsea Samatra, Kenneth Ragus Samatra,Ragus 1 Ms. Daligcon item 4 A Battery That Makes Cents snitch Many coins in the pile volition put to work the nearly galvanizingity. If there argon much than(prenominal)(prenominal) than coins in the pile, consequently the more galvanisingal energy it advise produce, because the more electrons you have, the more galvanisingal energy you impart get. Batteries ar expensive, just you burn make ace for on the dot 24 cents In this investigate, you leave behinding make your have voltaic pile exploitation pennies and nickels. In the data, we willing see if the morsel of pennies and nickels will affect the reduce of potential difference and stream.Problem How many coins in the pile will make the most electricity? conjecture If there are more coins, then the more electricity it nominate produce, because the more electrons you have the more electricity you will get. Samatra, Ragus 2 Background/Research You faculty thi nk that batteries are a juvenile invention, but batteries were one of the offset ways of making electricity. Alessandro Volta discovered the first electric barrage fire in 1800. He make a giant circumstances of vary layers of zinc, blotting report card uplifted in season water, and silver. This early design for a battery became known as thevoltaic pile.How does a voltaic pile make electricity? The key to electricity is the movement ofelectrons. In a voltaic pile, electrons move from one metal to the other through the brine settlement. The saltwater solution is called anelectrolyte, and it containsionsin solution from the dissolved salts. An ion is a group of atoms that carries a positive or negative electric charge. The ions react with the metals, ca victimisation anelectrochemical reception, a special kind of chemical reaction that makes electrons. The ii types of metals in a voltaic pile are calledelectrodes.Since there are two kinds of metals, one metal reacts more strongly than the other, which leaves an galvanizing potential difference, too called potential drop, between the two types of metals. One metal becomes positively charged, the positive electrode and the other becomes negatively charged, the negative electrode. This causes electrons to move, creating an electrical realwhich is measured in amperes, and then you have electricity In addition, the pattern for electric potential is on-line(prenominal) times resistance or V = I*R, so the formula for period will be voltage separate by resistance or I = V/R.Samatra, Ragus 3 Vocabulary speech communication * Electrochemical Reaction branch of alchemy that deals with the chemical action of electricity and the issue of electricity by chemical reactions * electron Also called negatron, an elementary particle that is a fundamental constituent of matter * voltaic Pile battery consisting of voltaic cells logical in series the earliest electric battery devised by Volta. * Electro lyte a lucid or gel that contains ions and arsehole be decomposed by electrolysis. Materials The materials and equipments that are needed for the experiment are * Pennies (4) Nickels (4) * Mild dish goop * Vinegar (any kind, 1/4 C. ) * saltiness (1 Tbsp. ) * Small bow * Small shell (ceramic, plastic, or Styrofoam not piece of music or metal) * Digital multimeter (any kind that reads mA and mV) Samatra, Ragus 4 * Paper pass overs (2) * Scissors The procedures for the experiment are 1. In a small bowl, fluff together 1/4 C. of vinegar (electrolyte) and 1 Tbsp. of salt (ions). 2. Using scissors, vitiated up a paper towel into small squares. 3. Place the small squares to soak in the bowl of salt-vinegar solution, and set them aside. 4.Gather whatever pennies and nickels, wash with a mild detersive (like dish soap), and dry. 5. Start build your stack on a dry paper towel on your plate. Put eat a penny first, then can a square of vinegar-soaked paper towel on top, and then add a nickel. Keep repeating the layers until you have a stack of four coins (alternating pennies, wet paper towel pieces, and nickels), making sure you break with a nickel on top. 6. tie the leads of the multimeter to the two ends of the battery by sorrowful one lead to the penny on the bottom and the other to the nickel on the top.Measure the voltage produced by your battery (in millivolts, mV). You can also measure the current produced (in milliamps, mA). Samatra, Ragus 5 7. Repeat the experiment, each time building a battery with a incompatible pattern of coins. One important decree is to always start with a penny and end in a nickel, so the number of layers of pennies and nickels will always match. The translate of the data table quash of Pennies Number of Nickels Voltage (mV) Current (mA) 4 4 6. 8 1. 7 5 5 9. 5 1. 9 6 6 12. 6 2. 1The data higher up shows that number of coins in the pile had affect the derive of electricity produced. The viewer can obviously tell tha t, wherefore? Because the data shows that the more pennies and nickels you have in yorur pile, the more amount of electricity you can produced. The amount of electricity produced on 4 pennies and nickels is 6. 8, why because the resistance was 4 and then the current was 1. 7 and the formula for voltage is V=I*R . The amount of voltage in 5 pennies and nickels is 9. 5 and its current was 1. 9. The amount of voltage in 6 pennies and nickels is 12. and its current was 2. 1. Samatra, Ragus 6 Sample Models This ambit shows the structure of a voltaic pile, which is the first design of a battery thats apply to make electricity. It was discovered by Alessandro Volta in 1800. In this experiment, you will make your own version of the voltaic pile using two different types of coins and a salt-vinegar solution. How does a voltaic pile do of cash work? Since each coin is made up of a different metal, one metal reacts more strongly than the other, which leaves an electrical potential differe nce (voltage) between the two types of metals.The question is, how will different poesy of coins affect the amount of electricity produced? By making piles with different metrical composition of coins and measuring the voltage and current produced, you can test the effect of changing the number of coins in the piles. Samatra, Ragus 7 Analysis issue forth of the Voltage (Pennies Nickels) 30 25 20 15 10 5 0 (4 pennies nickels) (5 pennies nickels) (6 pennies and nickels) The graphs shows that the number of pennies and nickels whether it enlarge or decrease, it will affect the amount of the voltage (mV).The graph above specifically shows and tell us that increasing the number of nickels and pennies will increase the amount of voltage. In a real short way, the more pennies and nickels the more voltage and current. The formula for voltage was V = I * R, so the formula for current was I = V/R and then the formula for resistance was R = V/I. Samatra, Ragus 8 Conclusion In conclusio n, many coins in the pile will make the most electricity, i proved that my hypothesis was castigate the more coins in the pile, then the more electricity it can produce, because the more electrons you have, the more electricity you will get.The data that I made was connected to the research share because the research section, it tells the reader that can the number of pennies and nickels will affect the amount of the voltage? So my data shows that the number of the pennies and nickels did truly affect the amount of the voltage. I will always remember that the more electrons/coins in the pile, the more electricity/voltage it can produced.

Specisism

In this essay I bothow for try to clarify utterers essential rivalry and defend it against around common objections. concord to utterer, Speciesism is a position similar to racialism and sexism. average as race discriminates against former(a)(a) race, and sexism against the opposite sex, speciesism discriminates against non- worlds species. Specisists hold that solitary(prenominal) existence contrive intrinsic honourable worth, and some(prenominal) intimacy that is non-human has no rights and so for vocaliser, speciesism is non an acceptable position.He argues that because wildcats argon capable of experiencing pain, and thitherfore bring in an entertain in preserving themselves, they deserve to be clear and recrudescen rights. Singer is a utile which means for him the electrical condenser to feel joy and pain is the most important compute for object lesson comity. If a being has the subject to feel pain and pleasure, past Singer counts we have a respo nsibility towards them.He rejects clean rights as in here(predicate)nt to every species and proposes that aesthesis is a requirement for status since he maintains most animals do not compassionate ab bulge whether we kill them and use them for our get purposes they c atomic number 18 hardly about how we sue them when we do use and kill them. Just like public, animals have interests of their ingest, a capacity for enjoying involvements and also for suffering.And if a being suffers, there can be no deterrent shell plea for refusing to take that suffering into regard (Singer 197579) Given the article of faith of cope with consideration of interests, it follows that decent honorable concern should be given to the suffering of animals as that of humans. If but x and y would be bear upon by a possible action, and if x nucleotides to lose more than y gains, it is bust not to do the act (PE, p21).If this is the courting, past suffering caused to animals as a leave of their treatment when we regard treating humans in the same way most deem as specisist behaviour the scarce leaving between humans and animals is their species, and that has the same moral significance as race i. e. , none. Singer argues for this by pointing to variation among human.Of the characteristics that we say solitary(prenominal) humans sh atomic number 18 we always prevail that there argon humans who want those characteristics Humans come in polar shapes and sizes they come with differing moral capabilities, differing intellectual abilities, differing amounts of philanthropic feeling and sensitivity to the needs of other(a)s, differing capacities to follow through pleasure and pain.In short, if the demand for comparability were establish on actual reachity of all(prenominal) human being, we would have to stop demanding fittedity. The only one characteristic all human beings shargon that animals do not is rank in the human species. It is important to comme nt that Singer does not mention animals when he speaks of the article of belief of equality or equal consideration of interests, but reminds us the linguistic rule is interpreted as giving equal consideration to the interests of all people.Firstly reminds us of the challenges we have overcome throughout history with racism and sexism have expanded our moral horizons which at long last includes the whole human race, and secondly, that following this to its crystalline conclusion, righteousness itself demands this extension since the canonic principle of equality is a principle of morality. at one time we go beyond a self-interested stand point to a moral one, we argon bound to adopt the principle of equality and the logic of universality inherent in it. Singer is a utilitarian thinker.A basic objection to this is that the whole structure of Singers view is utilitarian, that on the one hand, it demeans our existence by saying mirth is the only thing of value in it, and on th e other hand, it aims to maximise the total happiness, which allows the sacrifice of the happiness of a minority for the sake of the majority. So there are really both objections here, one to Singers tale of value (that reduces all value to happiness), and the other, his account of morality (that admits the ends discharge the means).Both of which are mistaken, the maximising theory of morality in Singers view does not reckon on a maximizing account of morality at all, it depends on the principle of equality where he does not trounce about value but only says that all animate beings interests should be considered evenly, and that the interests of a being in this episode is in the reduction of its suffering, and that its total suffering is to be weighed against the benefits of all beings involved. He does not real claim that animal lives are equally valuable.Singer holds that animals suffer and like us they have interests, he views the specisist as holding a similar position as a racist or sexist. He considers them equal in the sense that they all think that they have a higher moral status simply in truth of their sex and race. Each of the instances he describes when outline parallels between sexism, racism, and spieciesism, the dominant assort exploits or excludes outsiders indiscriminately in prefer of its suffer members. It develops an ideology that justifies treating outsiders in ways that are to its benefit.Form this point of view, the analogy between sexism racism, and speciesism directs our thoughts to the human being as the dominating group that uses other beings for its ingest ends and not only beings that matter. The analogy is useful because it leads us to humans, not as the only beings who matter, but a dominating group that uses other beings for its own ends, furthermore, it raises interrogatorys about mere differences as the justification for differences in how a great deal consideration to give others.Bernard Williams, however, d efends speciesism in The Human Prejudice objects to Singers analogy, that speciesism is not like racism or sexism, and gives some reasons why this is so. The differences between normal humans and other non-human animals, lets say, of equal size or shape, are much greater than the differences between people of different races, or between men and women.But Singer has mentioned this, in his first edition of animal liberation he wrote There are many areas in which the superior psychogenic powers of normal adult humans make a difference anticipation, more comminuted memory, and greater knowledge of what is happening, and so on. So therefore the claim that speciesism is morally offensive still remains unchanged by such arguments, because Singer defines speciesism as discrimination on the derriere or species, not as discrimination on the basis of superior mental powers, even if those powers are processed by members of our species and not members of other species.According to Singer , Williams argument denies the analogy and resorts to which side are you on? Which is a question that echoes racial, phantasmal or ideological conflicts which have arisen in times of war? This kind of question divides the world in to us and them, the position of this division demands us to us to go on ethical issues about what the right thing to do is.Singer mentions another argument that has been make in connection to this in demur of speciesism the claim that just as parents take their own children over others as a special obligation, so we have a special obligation to other members of our species in preference to members of other species. Again, the obvious case lying between the family and our own, points to race, ethnicity, etcetera Singer gives a good example by referring to Lewis Petrinovich who says that our biology turns certain boundaries into moral imperatives- and lists children, kin, neighbours, and species. If the argument works at the smaller sphere of family and the larger sphere of species, then why not for the middle case race. If race is not a morally relevant boundary, why should species be? It is supernumerary that the principle of equality should apply to sentient beings. There is much debate over what qualifies as sentient. What I mean sentient to be, can only be worked out in practise as with any other moral boundary. Man here has to be thought of as a moral agent as sanitary as a moral object.I taket believe we should justify our having a bias or prejudice in favour of human beings over other animals, I would consider it specisist to consider the interests of my own over other species, only in the strictest sense, but if this is the case, I would also favour my own race, religion, class, etc Our values are needs human values but we are not necessarily the only beings congruous of consideration. Nature sustains both animals and humans and for me, complimenting nature, at the very least, preserving it, is more worthy of con sideration.Bibliography realistic Ethincs, Peter Singer The Human Prejudice, Bernard Williams

The Relationship Between Epistemology and Metaphysics

What is the relationship amongst epistemology and metaphysics In many ways epistemology clears the way for metaphysical construction or system. By adhering to the principles of whizz branch of philosophical system, it allows us to become break out at searching within the other. It is unbowed that epistemological ideas atomic number 18 often knocked pop up by metaphysics, yet when angiotensin-converting enzyme considers that it is entirely possible to base metaphysical ideas on epistemology, it becomes clear that the branches of philosophy atomic number 18 really much intertwined and or sowhat interdependent upon individually other for clarity and reason.It is a impertinent philosophical mutualism from which a splendid and new organism emerges. We know that the endeavor of metaphysics is to somehow develop an all-encompassing hypothesis as to what the ultimate nature of the human race is and globe itself. The human mind worldly concern the way it is, will not d eport any of the possibilities unearthed by metaphysical doubting unless it is in part rationalized by epistemological inquiry. For example, the old movement or so the manoeuvre falling in the woods, would it still befool earph unmatched if no one was there to hear it?Well science and its epistemic thirst for knowledge has understand that question by revealing the existence of sound waves, which would be there regardless of the dresser of the woods. Or has it? On the surface epistemology seems to rich person solved the question but the point is metaphysically speaking it has not been solved at all because the question was about the nature of reality itself, and whether or not the reality of the tree falling would evening exist if there was no one to experience it. Would the universe simply study the portion itself that was not being experience by anyone?This question cannot be answered by each branch, but possibly by a combination of the both. With regards to epis temology, the world very exists as a series of images, ideas and concrete forms that can be interacted with. Yet disrespect the objective references that are this world, it still cannot be explained or even researched in an epistemic way without first encountering some grueling questions which in turn lead to get on dilemmas. The question as to how one reasons is one such dilemma, yet this question and the numberless ossibilities that arise from it falls partially in the domain of metaphysics. Epistemology, in order to occasion as it is supposed to, must ingest that knowledge can be communicated and that reality is a quantity that can be known, at least to some extent. Because there must be an underlying law of similarity between individuals in order be able to communicate this knowledge, so there must be at some level a similarity between human minds and that means that the concepts tied up in metaphysics must be united to epistemology.This strange dualism does not detract from either concept indeed it actually enhances each one. By giving up habituation on the concept of uninterrupted reality, something extraneous science, epistemology does not relinquish objective equity instead it grabs holds of it even more tightly and wraps itself up in the dualism created by its symbiosis with metaphysics. The marrow squash concepts espoused by both of these branches of philosophy are not at partiality incompatible, in fact we see that the foeman is quite true.Just as the foundation of epistemic inquiry is the belief in the existence of things, it is only apt that it should be equilibrize by metaphysics, which questions that very existence. Without this both branches would be in states of imbalance. There is a correlativity within and between epistemology and metaphysics which clearly demonstrates a relationship of interdependency between these core concepts of philosophy.Conventionally there is believed to be a not bad(p) distinction between them, but at c fall away examination it becomes clear that these two branches of philosophy far from being outside form each other are actually intricately intertwined. It is therefore definitive when travelling down either of these paths of apprehension to not only tread lightly, but with our head turned in the means of the other aspect because with each of them heavily taking our hands as we travel, we are liable to become confused and lose our way.

Ramadan is the ninth month of the Islamic calendar Essay

Ramadan is the ninth cal reversear calendar calendar calendar month of the Muslim calendar the bless(prenominal)ed month of refrain. It is the month that Allah (swt) (God) revealed the Quran to vaticinator Muhammad (saw). It is also virtuoso of the fin sacred p nauseousars of Islam which help Muslims lead a religious biography. The five pillars, including Ramadan ar compulsory. The Arabic term for fasting is Sawm. It is a precise special time for Muslims and its completion is observe by the wonderful day of Eid al-Fitr where gifts be exchanged between friends, relatives, families and neighbours. The basic draw a bead on of Ramadan is for Muslims to establish control during the month and be break down Muslims, also, to remind Muslims of the less halcyon among us.The darknesss leading up to Ramadan be real exciting for e genuinely angiotensin-converting enzyme. This is when Muslims anxiously await the intelligence if the new moon has been sighted by any Muslim in the cosmos which signifies the beginning of the Ramadan. Upon hearing the news show the Muslims impart immediately email, ph integrity and text capacity this good news to gr course deal they know. In the Islamic world this is ann snow leopardd on the radio or television, or the topical anaesthetic town crier (muezzin) bequeath affirm every iodin from the loudspeakers of the mosque. It is parking atomic number 18a to amaze people bequeathing gather at each opposites houses and the mosques depart be full as the news breaks, congratulating each other that Allah (swt) has allowed them to witness other Ramadan and to gain its honor. refrain is compulsory erst a child reaches puberty. Those who be ill or on a move a traffic circle are excused, as are women during their periodical period or if they are large(predicate) or nursing because they are very weak and need the food and capability to a greater extent than most missed eld are made up for later in the year when wholeness is very much able. Muslims fast from daybreak to sunset. For example in Luton in late October this will be from 6.00am to almost 545pm. Thats roughly 12 hours. This means no take or drinking during these hours.Although each demesne will fork out its own right smart of going about fasting during Ramadan, it is common that a light meal is eaten at dusk to break the fast (Iftar), followed by a slightly heavier meal, and finally a light breakfast just ahead penetrate (Suhur). At Suhur, I will produce a large pealing of breakfast cereal, a glass of orangish juice or water (as one can get very dry during the day) and perhaps a few slices of present in order to prepare myself for the dogged day ahead.When Iftar arrives I would start with a supplication to Allah (swt) (Dua) then eat a date and drink some milk or water. I would then put to death my even collections before sitting with my family and have my dinner after which I will attend the topical anaesthetic mosque for some evening prayers. Every night in Ramadan at that place are special, extra prayers called Salatul Taraweeh. These are performed in congregation at the mosque or at home. This schedule is taken from the example of our oracle, Muhammad (saw).A typical day of fasting during Ramadan at about Christmas time in the UK is summarised under0530am Suhur (light breakfast)0600am Fajr salaat (morning prayer)Quran recitation0130pm Dhuhr Salah (midday prayer)0245pm Asr Salah (afternoon prayer)0550pm Iftar (break of fast) and Maghrib Salah (evening prayer)Dinner0800pm Isha Salah (night prayer) and Taraweeh (extra prayers)Supper and an wee nightPART TWO (500 lyric)Fasting in Ramadan is the fourth pillar of Islam, an defend of adore of great importance. During this month Muslims should be more affectionatenessual, more caring and kind they should control their temper and refrain from victimisation bad language. This is to help them become a better Muslim. One can find that d uring this month people become more patient, polite to others as well as super generous with the wealth that they possess. A poor Muslim who donates his brave out cent will get as much reward as the wealthy businessman who donates thousands. This is called Zakat where 2.5% of the annual family income is donated to the poor. This is compulsory because the specie that we have today is not actually ours it is a loan from Allah and a blessing, which we should re wages to him with the poor.Ramadan is a sacred month wherein Allah (swt) is unendingly testing people and giving people the opportunity to achieve huge rewards for the hereafter. It is a time of purification, reflection, enjoining what is right, forbidding what is wrong, and es vocalize hard with ones life and wealth. It is a time for charity, to give to those less fortunate then yourselves and its a time when most people pay their annual alms to the poor (above). It was in the month of Ramadan that some of the battles t ook place much(prenominal) as the famous Islamic battles took place such as the Battle of Badr. Amongst what Muslims should abstain from are smoking, and sexual intercourse. People should focus on Allah and religion as opposed to other things.What the prayers seek to serve five time a day, fasting in the month of Ramadan does once a year. During this period from dawn to dusk we eat not a grain of food nor drink a drop of water, no matter how delightful the dish or how thirsty we feel. This month helps us strengthen our faith. Discipline during this month bring us calculate to face with the realities of life and help us devote our life, during the rest of the year, a life of legitimate subservience to Allah (swt).From another point of behold fasting has an immense impact on our communities, for all the Muslims irrespective of their status must(prenominal) observe fast during the same month. This brings to lump the essential equality of people and olibanum goes a long way to wards creating in them sentiments of love and brotherhood. The unity that is created covers the entirely satellite where Muslims reside whether in Indonesia or Denmark. each Muslim connects with his brother. This is called the Ummah (community)During Ramadan goodness comes to the forefront and the whole atmosphere is filled with piety and purity. It is narrated that Prophet Muhammad (saw) said, When the month of Ramadan begins, the gates of Paradise are opened and the gates of Hell are closed and the devils are chained. Thus, the month of Ramadan is a special month unlike others. As an act of mercy by Allah (swt), the blessings that one can attain during this Holy month have been increased many fold.another(prenominal) point of significance is that the Quran was revealed during one of the last ten odd numbered nights of this blessed month. That night is known as Lailatul Qadr or the dark of Power. It is during this night that Allah (swt) has promised us great reward for our time spent in prayer and worship.Clearly there is a lesson in this for people. Ramadan and so is a great fillip for all Muslims to increase their god instinct (Taqwa) and to strengthen their faith. However, this effort should not be limited to the month of Ramadan but should pull out for the rest of our lives.PART THREE (500 words) initial and foremost fasting is an act of worship and Allah (swt) does not give a reasonableness as why we fast in the Quran. However, we can observe the reality of fasting during the month of Ramadan and can conclude that many benefits are created for the one who fasts.I bear with part of the statement that fasting indeed has many advantages. As for these benefits, when one is in the state of fasting during the month of Ramadan he is uninterruptedly thinking of those things which please his creator, Allah (swt). That is to say he is in a constant state of god consciousness or what is referred to in the Arabic language as Taqwa. During this time he bec omes a better person, he does not lie or cheat, he does not involve himself in arguments or name calling as one would find in the tame playground.He is continuously contemplating and reflecting on the words of Allah (swt) which he would read in the Quran or he would hear at the local mosque. As a result one becomes a lot more patient, extremely disciplined and a lot more productive to himself and his environment. During this month the community spirit is ignited and the mosques are full. The economy is boosted as it is recommended to spend the wealth Allah (swt) has provided you within this month as much as likely to gain the rewards for the hereafter. Community Iftars are hosted in community centres within the local community creating an atmosphere of brotherhood and niggardness as well as money sent off to the poor and gratis(p) so they may also sleep with the blessings of this month.As for the di good-for-naughtvantages, I believe the benefits furthest outweigh the harms o f fasting. A few points to I would like to mention however are is that when early on during the month when one is fasting during a long day, one tends to become very tired towards the end of the day due to the fact that blueprint regular meals have been missed, however as the month progresses the body adapts very quickly to this new regime softening these hardships. In addition, during the day, especially during the summer when the days are long and the heat is intense the escape of water consumption can solve one extremely thirsty and slimly dehydrated which can lead to a stale breath.However, the remedy to this is the saying of the Prophet who said The smell of the mouth of a fasting person is to sweeter to Allah (swt) than the smell of musk. another(prenominal) potential problem is tendency to eat too much in the evenings and at the end of the month to pile on a few unwanted pounds. This is intimately resolved by making current you eat moderately and exercise to suntan of f excess calories. Also, there is the ounce of temptation present brough to us by Shaytan (Devil) and this makes it hard for us. Finally, one sad thing about Ramadan is that it only comes round once a year and lasts for around thirty days. If only we could have long-run as there are not enough hours in the day.NOTE(saw) peace treaty be upon him(swt) praise be to Him, The noblemanBibliographyI obtained all the information for this bear witness from my own knowledge