review-2

Discussion-1

ACC60171H320 Managerial Accounting

Discussion 7 Module 7

Arvindh Sundar

2/14/2021

 Capital Budgeting Article 1:

Mun, J. (2020). Risk-Based ROI, CAPITAL BUDGETING, AND PORTFOLIO OPTIMIZATION IN THE DEPARTMENT OF DEFENSE. Defense Acquisition Research Journal: A Publication of the Defense Acquisition University, 27(1), 60–107. https://doi.org/10.22594/dau.19-829.27.01

This article depicts about several factors like risk analysis, decision modeling, and predictive forecasting create a portfolio for Department of Defense risk-based return on investment so the overall capital budgeting analytical structure. In the initial part of the article, the author mentioned about a few research questions to build a foundation on the objectives that need more focus. For instance, the department of defense has to come with an approach that amends to the portfolio so they can come up with an optimization model. When focusing on optimizing the portfolio, the model should assist the organization in finding an optimal solution during the decision-making process so the constraints can be tested and implemented during the decision progress. Overall, every organization can come up with their infrastructure that is compatible to their factors, but the department of defense can implement previous patterns or create a new pattern to support the programs. This will help department of defense to collect the objective and transfer to respective departments internally.

Capital Budgeting Article 2:

Brunner, M., & Ostermaier, A. (2019). Sabotage in Capital Budgeting: The Effects of Control and Honesty on Investment Decisions. European Accounting Review, 28(1), 71–100. https://doi.org/10.1080/09638180.2017.1412338

This article represents about a laboratory experiment to show how sabotage investment can be used to switch back to the usual flow of the organization so the overall capital budgeting of an organization can be followed with honesty and transparency. In order to conduct the experiment, firstly the authors need to collect data from the managers on how they react in a control condition so they can come up with a reciprocate the same condition and reverse the process if they are in need. When conducting the analysis, the factors needed analyze on two different variance and main effects are treatment, factual assertion, residual and reciprocal of each main factors mentioned above. This article is a quantitative analysis approach by two tasks where they depend on owner and the manager. Manager and the owner has their responsibilities so they can come with multiple options. The reason behind is, both options can be used to derive the payoff and then implement in a trial stage before processing it in the organization.

Financial Analysis Article 1:

Majernik, M., Majernik, S., Rusko, M., Ilko, J., Kollar, V., & Kralikova, R. (2020). Management with Application of the Financial Analysis in the Food Industry in Slovakia. Annals of DAAAM & Proceedings, 7(1), 348–355. https://doi.org/10.2507/31th.daaam.proceedings.049

This article is focused on determining the financial analysis of food industry in Slovakia. This article depicts about the competitiveness and stability of food industry across the European nation which expands to overall financial situation to rural development program for the republic of Slovakia. Both economic and technical areas combined forms an infrastructure to apply it on the analysis. The reason behind this analysis is to achieve basic changes in overall performance of the industry. The financial analysis comes with its issues namely company liquidity, activity analysis, and value of the company in the market. In order to overcome the issues, the knowledge and logical thinking from both synthetic and deductive methods to compare them with each other to assume the compared values. The main objective in this analysis is to build a financial data bank so they can provide security to the documentation process, improve the analyzes and output data in the end.

Financial Analysis Article 2:

Nam Kyu Park, & Yohan An. (2020). Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company. Journal of Marine Science and Engineering, 8(954), 954. https://doi.org/10.3390/jmse8110954

This article is focused on examining the financial status of Automated Container Terminal in an operating company. This case study is conducted with the help of qualitative analysis method by optimizing the efficiency of finance to analyze the loading properties of the containers. This helps in decision-making properties for analyzing the Terminal Operating Company so they can share it with the stakeholders. The tabular representations explains about the purpose of introduction to financial analysis of automated container terminal so the perspective of loading capacity can be used to make decisions in optimizing the numbers which will not hurt the stakeholders and the presentation of the company. This case study is relevant to the Korean government because in the port of Busan the fourth industrial revolution so the depth of terminal capacity can keep getting invested in the long run and it will help the industry in the long run.

Discussion Outcome:

From this discussion, the annotated bibliographies, it is well known that every organization has their own infrastructure and their flow of process across the companies. The difference between the companies stand against each other is how they implement new classification and when they implement it during the progress. For instance, if you consider the first annotated article, you can see that big data analytics can help the company to determine their patterns and identify what data to describe. If they are accurate and precise, then the critical metrics can be passed over to the implementation part of the organization.