For Parts II and III, we will be exploring how to perform Command-Obedience Account Bookkeeping (COAB) in order to provide the necessary financial information required by the WSA, Workflow Statement, Income Statement, and Balance Sheet. The financial information to be found here is to be conducted as part of MTEP by Accountants and Economic Planners. As the procedures for the LEBM (Life-Energization Basis Method) and NSBM (National-Socialization Basis Method) Techniques have been discussed in enough detail back in Part I, we can now proceed to demonstrate COAB and NSBM Techniques can be readily applied to Digital Enterprises. Remember, the accounting work for all Digital Enterprises, regardless of their Social Ranks in the Tournaments, can only be done using the NSBM Technique.
The focus of this portion of the Entry is to describe the parameters of the LERE Process using the NSBM Technique as part of COAB. The goal is to compile the required information for the following Accounts on the Obedience Side (“Accounts Receivable”) and the Command Side (“Accounts Payable”). To make this Entry easy and straightforward for anyone who are in the Accounting Profession or are unfamiliar with COAB, I will be reusing a familiar example that was made possible by Work-Standard Accounting Practices (1st Ed) and was first introduced “Test Demonstration of LER & LERE Processes”:
Suppose there are 250 Students at the tertiary educational level working for a Student Cooperative within the Student Tournament of the SSE. In just 8 hours, each Student has computer systems contributing Digital Arbeit with a Value of 10 GDM to their National Intranet’s Blockcycle. Given a Mechanization Rate (MR) of 0.0%, their overall Value of Digital Arbeit is 2,500 GDM after all Expenditures have been factored.
In the conversion to Digital Geld, there is no Economic Socialization (ES) because their production process happens to be not contributing to any other production processes. The “Solidarity Rate of Scale and Duration of Production (SR1)” is 1.25, which is in reference to the aforementioned Value of 10 GDM per 8 hours (or 2.5 GDM for every 2 hours). But since it is not facilitating Economic Socialization, the “Solidarity Rate of Scope and Density of Production (SR1)” is just 1.00. Therefore, their overall Price of Digital Geld is 3,125 GDM before all Revenues have been factored.
GDM/USD Exchange Rate is 1.00 GDM per $75.00 USD.
But instead of repeating the example described above, I will be reworking that example to provide two variations, applicable to the LER Process (which employs both the LEBM and NSBM Techniques) and LERE Processes (which can only employ the NSBM Technique). Different values, different economic organizations, but the same sets of procedures. The following are related to the LER Process using the LEBM Technique and the LERE Process using the NSBM Technique.
LER Process with the LEBM Technique
290 Students were participating in an EGO (Extracurricular Guild Occupation) operating 2 Student Department Stores inside a Shopping Citadel. Each Student Department Store, attached to the Student Tournament of the SSE, had 29 Students assigned to work in an 8-hour shift for 5 days in the workweek. In any given 8-hour shift, every Student achieved a Work-Productivity (WP) of 6 GDM with a Work-Intensity (WI) of about 2. The Force Multiplier (FM) is 1.00. The current Mechanization Rate (MR) set by the Central Bank is 2.31%.
On their own in any given day, each Student Department Store contributes 116 GDM. For an entire workweek, however, one Student Department Store contributes 580 GDM. When accounted together, both Student Department Stores make 232 GDM daily and 1,160 GDM weekly. Given the aforementioned MR of 2.31%, their combined Final Quality of Arbeit (FQW) is 2,679.60 GDM.
Economic Socialization (ES), it should be recalled, are additional sources of Arbeit that were facilitated by the economic activities of any Vocation, Profession, Enterprise, Industry, Sector, or Institution. The overall effects of ES are far more potent and higher among the Manufacturing and Natural Sectors, however. Distribution, maintenance, transportation, and repair services are notable examples for the Services Sector, but these are usually attributed to the Council State or Student Government and not the Enterprises of the SSE or the VCS Economy.
For those 2 Student Department Stores, ES did not apply because their transactional sales and rendering of finished goods were not facilitating other production processes. It would be a different story if those Student Department Stores are selling products that were needed by other Student Enterprises. The Solidarity Rate for Scale and Duration of Production (SR1) for both Student Department Stores is 0.5 and, because there is no ES value, their combined Solidarity Rate for Density and Scope of Production (SR2) is 1.00.
The value right now should be 1,339.80 GDM. However, because there are 2 Student Department Stores, the Final Quality of Geld (FQM) is also going to be 2,679.60 GDM.
The Attrition/Inaction (AIR), as the quotient of FQW and FQM, is 1.00%. This is because the FQW and FQM are both 2,679.60 GDM, the SR1 is 0.5, there was no ES to warrant the SR2 to be anything except 1.00, and there are only 2 Student Enterprises to be accounted here.
On a weekly basis, both Student Department stores have a combined Expenditure of 1,220 GDM as part of their overall costs, generating 1,000 GDM in Revenue from transactional sales. Each Student Department Store, in this context, had an Expenditure of 610 GDM and 500 GDM in Revenue.
Deduct 1,220 GDM in Expenditures from 2,679.60 GDM to yield their Total Economic Potential (TEP) of 1,459.60 GDM. Add 1,000 GDM in Revenue to 2,679.60 GDM to yield a Total Financial Potential (TFP) of 3,939.80 GDM. All we need to do now is find the Real Total Economic Potential (RTEP) and the Real Total Financial Potential (RTFP).
Given the TEP and an AIR of 1.00%, the RTEP is 1,459.60 GDM. With TEP, TFP and AIR, the RTFP is 5,399.4 GDM. The combined LER Account for both Student Enterprises is 6,859 GDM.
For 2 large Student Department Stores operating in a Shopping Citadel, these are healthy numbers that they should be having. If the State Commissariats believe that a “Transvaluation of All Arbeit (TAA)” is necessary, the Convertibility Rate (CR) will be employed to alter the Value of Arbeit and the Price of Geld on behalf of the Central Bank. Alternatively, the Central Bank could lower the Mechanization Rate (MR).
LERE Process with the NSBM Technique
A Digital Enterprise on the National Intranet has 750 Civil Servants overseeing the production processes of 15 State, Social and Student Enterprises. These Enterprises back in the Real World are producing goods at manufactories, transporting and delivering the merchandise, selling services through offline retailers and online eCommerce platforms, and providing maintenance and repair services.
In an entire workweek, this Digital Enterprise has a WP of 7 GDM from each of its Civil Servants and an WI of 4, its Force Multiplier (FM) being 1.90 due to them contributing Digital Arbeit to the Life-Energy Reserve. Due to the other 15 Enterprises causing Economic Socialization (ES), the State Commissariats raised its FM to 2.40. The Central Bank’s Mechanization Rate (MR) is 1.75%.
In the LERE Process, there is the Actual Arbeit and then there is the Digital Arbeit. The Value of Digital Arbeit is twice that of the Value of Actual Arbeit to reflect the fact people are operating machinery connected to the Digital Realm.
The Value of Actual Arbeit from the 750 Civil Servants is 5,400 GDM, the Value of their Digital Arbeit is also 5,400 GDM, and the sum of both Actual and Digital Arbeit is 10,800 GDM. Multiply 10,800 GDM by the MR of 1.75% to yield 18,900 GDM. The Expenditure of running the Digital Enterprise remotely on the National Intranet for 15 other Enterprises is 60 GDM.
The Digital Quality of Arbeit is 17,840 GDM.
The ES value for each of the 15 Enterprises is 30 GDM for a combined total of 450 GDM. These values represent the amounts of Actual Arbeit that this Digital Enterprise enabled because it was rendering a service all of those Enterprises on the National Intranet. We should be yielding 18,290 GDM.
Next, we multiply that value by Solidarity Rate for Scale and Duration of Production (SR1), which is 0.075 due to the low WP value of 3 and the 40 hour work-week. The Price of Digital Geld is 1,371.75 GDM.
For the Solidarity Rate for Density and Scope of Production (SR2), which is a quotient of 450 and 60, the total should be 7.5. The Density of 1,0500 came from the value of the ES, the Scope of 60 coming from the WI of 4 for each of the 15 Enterprises. The Quality of Digital Geld is estimated to be 10,288.13 GDM. That figure can increase if the Digital Enterprise happens to be facilitating transactional sales with any or all of the 15 other Enterprises. Since we are relying on the LERE Process as part of the NSBM Technique, we are supposed to add the 18,290 GDM in Digital Arbeit and the 10,288.13 GDM in Digital Geld toward the RTEP and RTFP values.
Categories: Digital Realm
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