Lottery, Debt, but definately not Beer!

Today’s post is a summary of the highlights of class today:

·        An individual should buy as many lottery tickets as they can afford

·        It is better to have debt than cash

·        Beer is not good.

Please note the bullets above are the opinion of the professor lecturing in class today.  They are not necessarily the beliefs of this blog owner.  However, I am not too good to memorize them and regurgitate them on a test.

Variances

Every year, our firm plans a budget of expenses and revenue.  While this is particularly useful in strategic planning, it is also helpful in performance evaluation.   Noted differences between actual and planned revenue and expenses, known as variances, are classified by the accounting department as favorable or unfavorable.  If the difference benefits the company the variance is deemed favorable.  And vice versa is true for detrimental variances.  Below are examples:

Favorable Variances	Unfavorable Variances
Actual Sales > Expected Sales	Actual Sales < Expected Sales
Actual Costs < Expected Costs	Actual Costs > Expected Costs

However, this classification of variances as favorable or unfavorable can be very misleading.  This week, my accounting lecture noted as deceptive the unfavorable allocation of increased labor costs resultant of increased widget sales.  When the actual labor costs are greater than the expected costs, technically this variance is unfavorable.  But the inverse is actually true because this cost increase will be offset by increased revenue from the sale of the “extra” widgets produced.

Additionally, I would argue that increased sales noted as favorable may be deceiving as well.  Increased sales of widgets at my firm may require that we import products at a cost higher than our contracted selling price.  While technically favorable in the accounting department, the overall effect of the increased sales can be fiscally damaging.  Beyond the financial considerations, the fact that it was necessary to import products to meet demand may lead our customers to question our reliability. If taken to the extreme, this doubt could jeopardize future contract negotiations.

Therefore, the classification of variances as favorable or unfavorable is purely academic.  If implemented in a business setting, context consideration is mandatory.

Thankful!

From the looks of Facebook and Pinterest, it appears that it is un-American not to upload a post about those things for which I am thankful.  So here you go:

• My God:  I appreciate the freewill to choose to love him.
• My Family:  Their support is the only thing that keeps me motivated.
• My Freedom:  My respect and admiration goes out to all those who protect this nation.

I am shocked by the number of followers my blog has already so I must say that I am thankful for you too! 

This topic... Again?!

Fifty hours (or more) of my week are spent on activities for my full time job.  Considering this and a few other things have on my schedule each week (read about those here), for my first semester in graduate school I decided to take a full load! 

In these three classes, I have already noticed common themes.  And, I don’t mean “themes” as in recurrent inferences to business topics.  Rather, I have noticed the exact same material being covered in all three classes.

The perfect example is the “Break Even” equation.

 

 

This information was first introduced in my Production and Operations Management course in the context of productivity and efficiency.  Such that, a manager can calculate the effect of a bottle neck with regards to labor hours and machine costs.  Like a good little MBA student, I memorized the formula and learned to apply it.

Then, on an exam for my Business Perspectives class, I utilized the same equation to solve a question that was intended to test my knowledge of segmentation in marketing.  To be honest, I am still not exactly certain how to answer that particular test question using the intended material – but I received full credit on the test and that is all that matters, right?!?!!

Imagine my glee when in my Accounting class, the formula appeared again as we discussed product and period costs.  Because I had already memorized the formula, I was captivated that there was more to the fixed and variable costs than I had originally learned almost 6 weeks before. 

It is notable that this is only one example of the numerous “themes” repeated in all three of my classes.  I am so intrigued by this as I am not taking the prescribed courses for my MBA in the “correct” order as indicated by the University.  While I am taking the introduction to MBA course, I am enrolled in a course most commonly taken by students in their second year of the program as well as a prerequisite, undergraduate course! 

Then again, if I were taking the course in the University-defined order, would this “coincidence” be less likely?  Surely there are more topics that can be covered than these that are repeated?

Like a 2 Year Old

Like a 2 year old - Why?

If “Why?” is the question (as indicated in mylast post), then I had better explain why I choose to pursue a Master Degree in Business Administration.  You know by now that I was not seeking something to occupy my spare time.  The thought of returning to the classroom first crossed my mind four years ago.  At this time I enrolled as a full-time student at The University of Texas Medical Branch.  Rather, than an MBA, I was studying to earn the designation “Specialist in Blood Banking (SBB)” signifying I officially know EVERYTHING about transfusion medicine! (Ha!  If only, that was true!) 

While completing this coursework, I worked as a mid-level supervisor.  To beat the band, the company I worked for was merging our operations with another firm.  Most of you are probably cringing right now but don’t – the merger was the best thing that has happened thus far in my career.  Because of the merger, my position was eliminated and I was reassigned to a different department in the other company.  (STOP cringing!!)  The Client Services/ Business Development department welcomed me with open arms as I was to serve as the link between the new company and our current clients. 

Despite not supervising any employees in my new position, I was reporting directly to the Vice President of this new department.  The fact that not everyone “got along” with this VP didn’t scare me, because I know a thing or two about not being “liked” because I am assertive and determined.  As a teen, I played competitive softball and to say I was an aggressive competitor would be the understatement of the year. 

I digress… this VP empowered and encourage me to leverage my talents, including my competitive nature, to the benefit of the firm.  Also, she was not surprised when I informed her that I wanted to align myself to fill her position when she retired!  Beyond not being alarmed, she challenged me “not to stop there”.  First step to “there” – MBA!

Why?

Why?

Contrary Shakespeare, “Why?” is the question.  Why am I writing this blog?  Why an MBA?

I would be lying if I didn’t admit that I am writing this blog because it is a requirement for a class.  But it is notable that I was interested in starting a blog prior to the assignment.  I had even considered writing a blog about business and my progression through business school.  Could I write a blog in my spare time?  My time not spent working 50-60 hours per week at my job, not spent working 8 hours per week at my part-time second job, not spent volunteering 3-4 hours per week at my church, not spent in quality time with my family?  So, I decided to put off a blog – until the first week of business school when my professor informed my class that we would be required to blog!  I firmly believe that everything happens for a reason because God has a plan for each of our lives.  So, here is my business blog!  

Considering the blogs that peaked my interest in the activity are not of a similar context (Blessed by Brenna, Fueling Strong, and Pintester), I am slightly worried that the subjects my blog will not be appropriate for my class.  And my “appropriate for my class” I mean:  “Get me full credit for the assignment”.  While I will keep this in the back of my mind when writing, I want to provide my readers (however few in number right now) with content that is entertaining, educational, and applicable to the everyday life of a business woman.

As a reader and follow of this blog you can expect:

·        Reviews of particularly interesting business article

·        Organization and time management tips and ideas

·        References to KPMG, Social Media, and TEAMRETIRE ATHLETE as these are all associated with my brother and his business career.

·        Gems from my classes – you know, those topics that sparkle!

·        And maybe even a craft or two!

On to the other “Why?”  Why an MBA?  To get ahead in my career and make a kabillion dollars doing something I love!  DUH!   More on this later...