Canadore College
Project Description
The proposed virtual lab simulation project involved the integration of selected virtual lab simulations into relevant biotechnology courses. Currently, courses are delivered face-to-face and employ an online learning platform that houses course content. Within the program, some courses have lab components, whereas others are strictly lecture based. Biotechnology program learners are diverse and come from a range of backgrounds, including high school, university, and the workforce. The learning environment consists of small class sizes (under 20), an average of five contact hours per day, and a balance of individual and group-based work assignments.
The development phase of virtual lab integration occurred during the August 2017 preparatory period, and delivery occurred in a course-specific manner depending on scheduling. Courses selected for integration of the virtual lab simulations occurred during the fall and winter semesters. Integration of the software into lecture-based courses exposed students to course material in a hands-on manner, whereas integration into lab-based courses exposed students to techniques that are not able to be performed in the actual lab due to infrastructure and/or time limitations.
The project was deemed successful in one respect: it is compatible with course material and existing course delivery strategies (i.e., it can be delivered using the existing online learning platform). However, the faculty within the program area determined that the Labster product was not ideal in their courses for a number of reasons that were identified specifically in responses to eCampusOntario’s survey.
The college academic year was atypical, being complicated by a faculty strike, and it is difficult to know for certain if the project outcome was impacted by that circumstance.
All faculty engaged in the project have said they would not likely use the virtual simulation software for their courses in the future.
The main success was that faculty became aware that there are other options available when hands-on, real labs are not possible.
Team Description
The implementation team consisted of three faculty members (two full-time and one part-time) of the Biotechnology department at Canadore College. The full-time members are current and former published researchers in the fields of education biomedics. Each member of the participating faculty implemented a minimum of one Labster lab into their fall and winter semester course loads. The Labster activities were implemented through the College’s online learning management system (Brightspace by D2L). For the initiation of the project, the students were guided through the activities by the faculty members via in-class discussion and computer lab assistance.
Initially, communication with other faculty at the institution was to have consisted of regular professional development workshops occurring throughout the academic year. However, given the work stoppage, Reading Week in the fall semester was cancelled, and during the winter semester PD Opportunities Week, the institution chose to deliver a simplified calendar. Presentation of the Labster software to the broader college community did not occur.
Communication with Labster was via email and teleconference, in addition to the training webinars, as necessary. The learners participating in the project had access to the online learning management system (LMS) and computer labs at Canadore College as well as regular debriefs by the faculty of the department. The use of surveys and data-gathering techniques allowed the faculty and Labster to assess the impact on engagement and median class grades compared to historical data in the LMS.
Integration Details
This section includes responses to the question on integration from each participating faculty member.
PT Instructor
BTN110–Organ Physiology. Three virtual labs were designated as required assignments, each worth 5% of final mark. The virtual labs were chosen to provide a laboratory example to support body systems covered in the lecture-based class. This is a first-semester course, and students (n=19) liked the idea of being exposed to a lab setting. Overall students liked having the theory portion of the lab available so they could go back to it any time to reread information in order to answer the corresponding lab questions.
BTN455–Virology. One virtual lab was assigned to students (n=12), worth 5% of their final mark. Although this lab did not explicitly deal with viruses, it allowed students the opportunity to understand the basics of cell culture. BTN455 is a lecture-based course, and this allowed for a virtual lab experience. Students overwhelmingly did not like the virtual lab. There was a verbal appreciation for the theory covered in the lab, but they found the simulation too automated.
FT Instructor 1
In the second semester of the pilot program with Labster, two courses were used to experiment with Labster as a learning platform:
- BTN215/230–Organic and Biochemistry, second-semester students (13 enrolled).
- BTN 435–Proteomics, fourth semester students (14 enrolled).
Each of the cohorts was presented with varying numbers of simulations (three for BTN215/230 and four for BTN435) to support curriculum delivery (BTN215/230) and enhance the laboratory experience (BTN215/230). The students in each cohort were offered a bonus of 5% to 10% to participate in the simulations and the assessment survey.
Looking at the breakdown of the cohorts individually:
- BTN215/230 students participated at a rate of approximately 50% in the second part of this pilot program. The chosen simulations for these students were Introduction to Food Macromolecules; Protein Synthesis; and Protein Denaturation. Each of the participants reflected on the experience through the use of a survey.
- BTN435 students participated at a rate of about 50%. There were four chosen simulations reflecting the curriculum of this non-laboratory based course: HPLC, NMR, Mass Spectroscopy, and Enzyme Kinetics. These student participants were also asked to reflect on the experience through the use of survey tools.
FT Instructor 2
Table 13.1 summarizes the integration details for my four courses.
| Course | Semester | Simulation name: | Number of Educators | Number of Learners |
| BTN100 Cell Biology | 1 | Cellular Respiration | 1 | 16 |
| BTN405 Molecular Biology | 3 | CSI Lab & Molecular Cloning | 1 | 12 |
| BTN131 Genetics | 2 | Meiosis & Mendelian Inheritance | 1 | 16 |
| BTN310 Industrial Microbiology | 4 | Fermentation Lab | 1 | 13 |
Table 13.1 FT Instructor 2 Integration Details
Integration into the Curriculum
For each course, students were instructed to complete the virtual simulations individually during their own time—not during scheduled lecture or lab times (fall semester courses: BTN100 and BTN405), or during scheduled independent lecture time (winter semester courses: BTN131 and BTN310). Instructional help was available (although not used) remotely.
For lab-based courses (BTN100, BTN405, BTN310) the goal in using the virtual simulations was to provide contextual information for techniques not yet performed in the lab. Students were required to complete the selected simulations as a prerequisite to conducting the lab on site. This strategy was intended to benefit the students by providing them with a self-guided review of the techniques prior to applying them in the lab. For BTN100 and BTN405, completion of an evaluative summary contributed up to an additional 5% on final test grades, and for BTN310, students who were able to complete the assigned simulation by the due date and time were given a 5% bonus on the associated test (test 2).
For the theory-based course (BTN131), prior to being assigned the virtual lab, learners were introduced to the theory in class and had already completed a graded review assignment on the topic. The simulation was assigned to reinforce what was covered during lecture and assessed as part of the written assignment. Following the simulation, students completed a quiz, which applied the concepts covered. Students who were able to complete the assigned simulation by the due date were given a 5% bonus on the associated quiz.
Learning Outcomes Supported and/or Met by Simulations
The primary goal in using the virtual simulations in my courses was to reinforce important theory-based concepts. For each course, the concepts supported or linked directly to the learning outcomes outlined in the course syllabus, as specified below:
- BTN100: Cellular Respiration simulation directly linked to specific learning outcome 4.4. (Identify and describe the reactions involved in cell respiration in theory and in the lab.)
- BTN405: CSI Lab and Molecular Cloning simulations supported learning outcome 6.0. (Perform some of the major experimental techniques used to manipulate DNA in the laboratory.)
- BTN131: Meiosis simulation directly linked to specific learning outcome 1.5. (Describe eukaryotic cellular reproduction, and differentiate between mitosis and meiosis.) Mendelian Inheritance simulation supported learning outcome 2.0. (Apply Mendel’s Laws via the analysis of human pedigrees and the use of probability calculations/measurements.)
- BTN310: Fermentation lab simulation supported learning outcome 2.0. (Categorize the beneficial uses of microbes [use of microbes in recombinant DNA technology] in the pharmaceutical industry.)
Benefits and Challenges (Educator Perspective)
Benefits: The simulations provided the learners with an additional tool for learning key concepts. This enhanced theory added variety to the learning materials made available to the students. In addition, the simulations exposed the students to selected lab techniques that are otherwise not able to be demonstrated due to limitations in the tools/materials/equipment available on-site.
Challenges: Student engagement was a challenge. Giving the learners an incentive for completing the simulations (i.e., bonus marks) helped to increase participation.
User Experience
The pilot project had three educators working on the integration of simulations in multiple courses of the biotechnology program.
The project consisted of two halves: the first half consisted of students in the first and third semesters of the program and the second half consisted of students in the second and fourth semesters of the program.
PT Instructor
- BTN110: Three virtual labs were used throughout the semester. In general, the students like the virtual labs. Some suggestions for improvement were to have the option of the lab reading the information to the user (i.e., text to speech). Students prefer to have the information read to them, but some students really disliked having it read to them. Students using Mac computers also said that the Labster drained their laptop batteries quite quickly. As well a few students had difficulty getting their account set up and/or having the program stall and/or glitch.
- BTN455: One virtual lab was used during the semester. In general, the students disliked the virtual labs. Verbal responses to questions about the labs included an appreciation of the theory involved, but dislike of the computer-generated voice and repetitive actions.
FT Faculty 1
The assessment of the students and simulations that I was responsible revealed that there was initial excitement about the use of virtual simulations, but that excitement waned significantly in the second half of the program. The loss of enthusiasm is reflected in the surveys, as six of the seven second-semester students comments on the lack of “real” skill learning using simulations compared to the use of laboratories. The fourth-semester students were already overwhelmed with capstone projects as part of the program and felt that, although the simulations were interesting, provided little in the way of curriculum support to enhance completion of those projects.
The simulations themselves are very well synthesized and presented on the part of Labster, but it was difficult to directly align existing course curriculum with the virtual simulations without having to rewrite some of the curriculum in a condensed semester.
FT Faculty 2
For my four courses, I was the only educator, and in total, there were 16 first-year students and 13 second-year students involved during the evaluation period.
Each virtual lab was assigned once.
Likes: Based on written feedback, learners found the simulations enjoyable, relevant, and educational. Many commented on their overall strength as a learning resource. Specifically, students found that the simulations addressed different learning styles through auditory and visual descriptions, and that they provided a good alternative to on-site labs through the provision of extra practice and exposure to new techniques. The convenience of being able to interact with realistic lab procedures remotely was also highlighted, and the content was generally viewed as relevant to the associated course material. Finally, some students specified that they liked the quizzes and that the platform provided feedback and allowed for multiple opportunities to answer questions correctly.
Dislikes: Many students found the simulations to be tedious and time consuming with respect to the precision with which they were required to navigate through the visuals. Individual learners specified that instruments were difficult to find, some actions were not responsive, and that the interface was too sensitive to cursor placement, all of which impeded progress. In addition, some learners indicated that the procedural steps were not always clear, which created confusion. Other dislikes included online learning in general, and the audio used in selected simulations, which mispronounced key scientific terms (e.g., “de-na” for DNA).
Technical issues: Many learners reported glitches that prevented them from being able to complete the simulation unless restarting. The simulations reportedly did not work on all monitor widths, which required students to restart on a different computer. Other complaints included a long load time, and that the simulations drained laptop battery.
Support: Extra support was not accessed during the evaluation period; however, the initial orientation was useful, and the eCampusOntario team ensured that educators and learners were aware of, and had access to, technical support if required.
Value
PT Instructor
- BTN110: An online survey was conducted at the end of the semester using our online learning management system, D2L.
- BTN455: A verbal question-and-answer period about the student experience was conducted after the students completed the Labster.
FT Faculty 1
In both the first half and second half of the pilot project, first- and second-year students were assessed by survey on our in-house learning management system (D2L). The first half results were submitted as part of the interim report.
For the second half of the pilot project the same survey approach was taken with the participants. The main personal goal for this educator was to assess the student’s opinions on whether the virtual simulation was comparable to the actual laboratory experience, whether the simulation reinforced the curriculum content, assessing the quality of the virtual simulations, and determining the student opinion on simulations as a learning tool for science.
The second half of the pilot had significantly less participation than the first half, even with an equal added bonus participation mark. Overall, the students did enjoy the visual nature and individual time to participate. The consensus was that the virtual simulations did not compare in direct impact to learning as did the actual laboratory experience. This was consistent with both the second- and fourth-semester participants. They did comment that they were able to reference the course curriculum when completing the simulation, but, there was only modest overlap between the course curriculum content and the objectives of the simulation labs. The student participants did like the quality of the simulations; there were very few comments about the difficulty of the actual mechanics of the simulation. They felt that it was a reasonable tool for achieving learning objectives but felt that they would achieve more if doing more actual laboratory work.
Reflecting on the experience I would say as an educator that the experience was not terribly exciting. It provides little opportunity for actual physical training and preparation for working in a standard laboratory environment. I would probably not elect to use the virtual simulations further as part of my course delivery.
FT Faculty 2
For the fall semester simulations (CSI Lab, Cellular Respiration, and Molecular Cloning), students completed a voluntary evaluative written summary. They were asked to submit a short (one-paragraph) evaluation on their experience using the virtual simulation. They were asked to include the following in their evaluation:
- What they liked about the simulation and learning platform.
- What they disliked about the simulation and learning platform.
- What they would change about the simulation and/or learning platform.
- Overall contribution to their learning with respect to the course content.
A descriptive analysis was completed on written responses (n = 17). For each of the four outcomes outlined above, meaning units (MUs) were identified and grouped into themes. Based on the themes, analytical categories were generated, and each MU was recoded with the appropriate response categories for descriptive analysis. Multiple MUs were generated from each response, and MUs that fit into more than one category were coded and analyzed as such. (Please see Appendix D for details.)
These results will be made available to the college community upon request.
Future Plans
PT Instructor
I do not plan to integrate virtual labs into my curriculum as students prefer to have physical hands-on labs. Although the first-year students thought the labs had some value in supporting theory and allowing them to experience a lab setting, by the second year the students overwhelmingly did not see the value in the virtual labs.
FT Faculty 1
Personally, I have seen no additional benefit to using the virtual simulations in my curriculum. I do not believe that they have given support or reinforcement to the student as part of the learning experience. I am not electing to use the virtual simulations as part of my course delivery in the future.
FT Faculty 2
There are currently no plans to continue integrating these virtual simulations into the existing curriculum. Although most learners indicated that the simulations helped with retention and understanding of course material, the written and verbal feedback also indicated that the simulations were overall too time consuming.
In light of their relevancy and educational integrity, these simulations have potential to serve as alternatives for missed labs in the future. In order for this to be feasible, there would need to be additional simulations available so that more on-site labs (ideally all on-site labs) could have a corresponding virtual option.
Lessons Learned
Lessons Learned
PT Instructor:
- Students are more likely to complete the lab if they are given a specific time frame in which to do so. As well, by assigning marks to the lab students feel the labs are an important part of the curriculum. These simulations are best geared to first-year students who do not have much experience working in a laboratory setting.
FT Faculty 1:
- I would say that in order to use the virtual simulations effectively as part of course delivery, the educator is going to have to pay attention to aligning the course curriculum content to mirror the objectives of the simulations very closely. Unless there is a direct requirement for participating and completing the simulations, students lose interest in the simulations as the novelty of the activity wears down. It becomes just another activity for completion.
- If a course) were designed around the use of the virtual simulations (being central to learning outcomes) there is a greater chance for incorporation and success.
FT Faculty 2:
- Associate completion of the simulations with a grade.
- Dedicate instructional time to the completion of the simulations.
- Ensure that the simulations are adding some additional educational content for the learner, rather than simply reinforcing concepts that have already been covered.


Private: Creating OER
Accessibility and Usability
Learning Objectives
By the end of this chapter, you should be able to:
- Provide three examples of ways an OER can be checked for accessibility.
- Explain how Universal Design for Learning is a good practice for both pedagogy and accessibility.
Accessibility is a major factor that should be considered when creating OER. If a resource is truly open, anyone should be able to use it. Exemplary OER will align with the following definition of Web Accessibility from W3 Schools:
Web accessibility means that people with disabilities can use the Web. More specifically, Web accessibility means that people with disabilities can perceive, understand, navigate, and interact with the Web, and that they can contribute to the Web. Web accessibility also benefits others, including older people with changing abilities due to aging.[1]
Attribution: “Open Dialogues: Open education and accessibility” by CTLT, University of British Columbia [Youtube] is licensed CC BY 4.0.
Universal Design for Learning
Alongside some more traditional parts of accessibility, also consider how the presentation of your course content can improve learning for all students. A great method for improving learning is Universal Design for Learning (UDL), “a framework to improve and optimize teaching and learning for all people based on scientific insights into how humans learn.”[2]
UDL claims that you can improve education for all learners by providing multiple ways of engaging with your course’s content. There are various ways to implement UDL in your teaching:
- Represent ideas from different angles and in different media types to accommodate the diverse needs of learners.
- Provide support for students to express their understanding of concepts in different ways.
- Allow students to engage in different ways by providing a variety of assignment types.[3]
As the BCcampus OER Accessibility Toolkit (2015) argues, UDL principles can be applied to accessibility as well as learning. The toolkit provides the following examples for instructors:[4]
- Design resources that can be accessed by learners in a variety of ways. If there is a text component, provide the ability to enlarge the font size or change the text color.
- Provide multiple ways for learners to engage with information and demonstrate their knowledge.
- Identify activities that require specific sensory or physical capability and for which it might be difficult to accommodate the accessibility needs of learners (e.g., color matching activities).
Universal Design for Learning and Universal Design are two separate but interrelated concepts. While UDL is intended to improve both the accessibility and pedagogy of a learning environment, UD is primarily intended as an approach to making content accessible to as many people as possible.[5] We focus on UDL in this chapter because the design of open educational resources is inextricably connected to how they will be implemented as learning objects. As an educator, thinking about UDL as a process tied to the creation, sharing, and use of course content is essential.
Software and File Format Choice
The usability of an OER is heavily impacted by how easily users can access it.[6] Two aspects of content design that are inherently tied to accessibility are a resource’s file format and the software used to access it.
Choose open file formats
If someone wants to read your work, they need to be able to open the file on their computer; however, some file formats require specific proprietary software to open. Saving your work in open file formats can give your students more options for accessing their course content on whatever platform best meets their needs. You should also consider disseminating your content onto a platform that may be easily edited, to ensure that students can change any aspect of the resource to make it optimal for their use.
Examples
- Open formats: HTML, ePub, RTF, Mobi, PNG, XML, PDF, Markdown
- Proprietary formats: MS Word, Pages, PowerPoint, Keynote
- Markdown converter tool: The University of Oklahoma Libraries’ Markdown Converter can be used to easily convert your Markdown text into most other formats.
Use accessible software
Some software used to create or display content disables accessibility features built into your computer’s operating system, such as zoom, text-to-speech, and speech-to-text. It is important to check whether the software students will use to view your course content disables the accessibility features of their computer’s operating system. This can be an issue both for OER and for traditional, publisher-provided course content.
Considerations
- Is the software used to view the OER compatible with most assistive devices?
- Does the software require point-and-click interaction to work properly?
- Can the software menus be “seen” and properly interpreted by screen readers?
How to check software accessibility
- Check common assistive keyboard shortcuts while using the software.
- Ensure that users can navigate content using only the keyboard if necessary.
- Enable OS accessibility features and check their effectiveness with the required software.
How to access common accessibility features
Image and Text Readability
Whenever you are presenting content to students, it’s important to check whether the text in your course content is recognizable to a computer as text. For PDFs, accurate optical character recognition (OCR) is often required to make the text understandable. Screen-readers require this information to accurately relay text back to students. Other best practices for making course materials readable are listed in the sections below.
Use heading levels (h1, h2, h3)
Text-based OER should always have a clear and logical structure. Using headings and other structural elements to organize your resource can make it easier for all learners to access and understand the material. Many editing tools support table of contents (TOC) generation based on where these section markers are placed. This can help students navigate to a specific chapter or section of a text, especially if the digital version of the resource has its TOC hyperlinked to each section within the text.
Individuals using screen readers can also more easily navigate the sections of your content when headings levels have been applied consistently.
Use true lists
While they may “look” similar to bulleted lists, using asterisks or icons to create a visual list of items can confuse a screen reader that is expecting to encounter structured content. Whenever listing items, use the true list features of your content editor, such as bullet points or numbered lists.
Examples
Good example:
- First list item
- Second one
Bad example:
* First list item
* Second item
Provide alt text and captions
No matter the subject of an image used in your content, you need to offer descriptive text. A screen reader will look for a contextual description of an image to share with readers, which should live in the text surrounding the image (title or caption) or as alternative (“alt”) text. This is one of the most commonly overlooked aspects of accessibility for instructional content, but most text editors include tools for adding alt text to images.
When adding alt text to an image, be sure to clearly and succinctly describe the most important elements for the student to know. Do not include extraneous detail. In some cases, you do not need to add alt text at all, as in the case of purely decorative images.
Examples
- Necessary descriptive alt text: “Part a of the figure shows a container which has a gas of volume V subscript 1 on the left side and nothing on the right side. Part b shows a container which is completely filled with a gas of volume V subscript 2.”
- Too much descriptive alt text: “There is a figure with a white background and two squares labeled a and b. Part a has a rectangle (representing a container) with a shaded grey section on the left half of the container with dots representing a gas. The gas is labeled V subscript 1. Part b…”
- Unnecessary descriptive alt text: “An icon of a person smiling – I put this here as a cute picture to liven up the page!”
Video and audio content needs descriptive text as well, but these usually take the form of captions or, in the case of podcast recordings, transcripts. You can easily add captions by uploading and sharing videos through a platform like YuJa. For assistance with YuJa at the University of Manitoba, contact the Centre for the Advancement of Teaching and Learning.
Use descriptive link text
Ensure that all web pages and links have titles that describe a topic or purpose. The purpose of the link can be determined by the text alone. That is, you don’t need to include additional information justifying the use of the link. You want the link to be meaningful in context. For example, do not use generic text such as “click here” or “read more” unless the purpose of the link can be determined by meaning in the surrounding content.
Examples
Digital OER should have descriptive links that explain to where the hyperlink is going to navigate the reader.
- Good example: Information on the BC Open Textbook Project is available online.
- Bad example: Click here for information on the BC Open Textbook Project.
If the OER design does not permit the inclusion of explicit links in the text, implicit links can be used, and a more detailed list of sources should be provided at the end of the resource or in a separate document. Footnotes are a great way of providing more explicit links for content without cluttering the text on a page.
Use Accessible Fonts and Colours
OER should be readable for those with disabilities related to colour as well. Some best practices for ensuring that fonts and colours are accessible are described below:
- Use dyslexic-friendly fonts, such as Arial, Century Gothic, Open Sans, and Verdana. Your institution might recommend certain fonts for digital and print materials. These recommended fonts are usually chosen for ease of use and accessibility and may be a good fit for your needs as well.
- Make sure there is a clear contrast between colors (e.g. between the background and font color, or between separate colours on a graph). There are many free online tools available for checking color contrast, but we recommend WebAim’s Color Contrast Checker and ContrastChecker.com.
- Do not use colour to communicate meaning without other markers of that meaning present. If you have colour-dependent information in images or within the text of your resource, be sure that either alternative methods of recognition (such as differing patterns) are present, or that the contrast can be adjusted by users.
Online Accessibility Tools
A great deal of OER content is displayed on websites, where we can use accessibility-checking tools to identify areas that can make it difficult for assistive technology tools to work properly. The online WAVE tool does just that: identifying errors and possible issues with the accessibility of websites. Additionally, the POET Training Tool is a useful image description tool for higher education.
The Flexible Learning for Open Education (floe) website provides access to a suite of tools intended to “supports learners, educators and curriculum producers in achieving one-size-fits-one learning design for the full diversity of learners.”[7]
Users with Diverse Needs
There is more to know and learn about accessibility, especially when it comes to users with diverse needs. For instance, standard web content accessibility guidelines (WCAG) are not sufficient to address the needs of autistic users (see Development of the AASPIRE Web Accessibility Guidelines for Autistic Web Users for more information, including “recommendations for increasing the physical, intellectual, and social acceptability of websites for use by autistic adults.”)
At the University of Manitoba, contact the Centre for the Advancement of Teaching and Learning for further information about accessibility and usability to address diverse user needs.
- W3 Schools. "Web Accessibility." Accessed May 15, 2019. https://www.w3.org/WAI/bcase/soc.html#of ↵
- CAST. "About Universal Design for Learning." Accessed July 15, 2019. http://www.cast.org/our-work/about-udl.html ↵
- CAST. "Universal Design for Learning Guidelines Version 2.2," 2018. Accessed July 1, 2019. http://udlguidelines.cast.org/ ↵
- Coolidge, Amanda, et al. Accessibility Toolkit – 2nd Edition. Victoria, BC: BCcampus, 2015. https://opentextbc.ca/accessibilitytoolkit ↵
- Edyburn, Dave L. Accessible Instructional Design. Bingley: Emerald Group Publishing Limited, 2015. ↵
- Attribution: "Software & File Format Choice" was adapted from "Accessibility webpage" by Affordable Learning Georgia and UH OER Training by Billy Meinke, licensed CC BY 4.0. ↵
- For more information, see floe's Inclusive Learning Design Handbook online at https://handbook.floeproject.org/ or visit their source code on GitHub: https://github.com/fluid-project/ ↵
Accessibility can be viewed as the "ability to access" something. The concept of accessible design and practice of accessible development ensures both "direct access" (i.e. unassisted) and "indirect access" meaning compatibility with a person's assistive technology (for example, computer screen readers). (Source: Wikipedia.org)
A framework to improve and optimize teaching and learning for all people based on the concept that, by providing multiple ways of engaging with content, the diverse educational needs of learners can be met.
A process intended to design products that are usable by all people,with or without disabilities, to the greatest extent possible (Edyburn, 2015).
A word or phrase that can be inserted as an attribute in an HTML (Hypertext Markup Language) document to tell website visitors the nature or contents of an image. (Source: WhatIs.com)
Feedback/Errata


10 Data on Need and Impact
Learning Outcome
By the end of the chapter, learners will:
- Understand datapoints related to the need for and impact of OER
Introduction
Data on need can help support a funding or resource request for development or expansion of an OER program. For example, negative impact of textbook costs on students is a regular topic of inquiry – a 2023 South Carolina survey found that 82% of students did not purchase required materials and 39% took fewer courses due to materials costs. Need data can motivate administration to support more positive student outcomes and retention.
Data on impact, on the other hand, is essential for demonstrating the quantitative and qualitative value of OER programs and initiatives. Previous studies have found that OER improve course grades and decreases withdrawals, and save students millions of dollars. This data can help align OER initiatives with campus success metrics and demonstrate a positive return on investment.
COUP and SCOPE Frameworks
The Open Education Group proposed the use of the COUP Framework for evaluating the impact of OER:
Cost
The adoption of Open Educational Resources can impact a range of financial and cost metrics for students and institutions. Using these resources instead of traditional publisher textbooks or digital materials will save students money. There may also be other financial impacts, like changes in bookstore revenues and tuition revenues. The Cost strand provides empirical evidence about the magnitude and direction of the financial impacts of OER adoption:
- Costs of textbooks previous assigned
- OER support fee models
- Changes in campus bookstore revenue
- Changes in tuition revenue due to changes in drop rates
- Changes in tuition revenue due to changes in enrollment intensity
- Changes in tuition revenue due to changes in persistence
- Changes in access to performance-based funding due to changes in drop, enrollment intensity, and persistence
Outcomes
OER increase student access to critical learning materials and expands instructors’ academic freedom, consequently improving student learning outcomes. The Outcomes strand provides empirical evidence about the magnitude and direction of the learning impacts of OER adoption:
- Changes in the percentage of students receiving a C or better
- Changes in rates of completion
- Changes in drop rates
- Changes in enrollment intensity
- Changes in persistence
- Changes in attainment of progress milestones (e.g., first 15 credits)
- Changes in graduation rates
Usage
The permissions provided by open licenses allow students to use OER in a range of novel ways – for example, updating a history textbook based on recent events. Likewise, the permissions provided by open licenses allow teachers to engage in new pedagogical practices. The Usage strand provides empirical evidence about the ways instructors and students use OER and the degree to which impacts on learning outcomes vary with these uses. It operationalizes the idea of ‘exercising the permissions granted by open licenses’ by determining the degree to which students and instructors engage in activities described in the DIME model of OER adaptation:
- Deleting material from the OER
- Inserting other open material inside the OER
- Moving material around within the OER
- Editing material in the OER
Perceptions
What do instructors and students think about, and feel toward, Open Educational Resources? How do they judge their effectiveness relative to traditional textbooks? Their rigor and coverage? Do they find the formats, structures, and other design features easy to use? Frustrating? What about other stakeholders, like parents or policy makers – what are their thoughts and feelings toward OER? The Perceptions strand provides answers to these questions.
Adapted from The COUP Framework by the Open Education Group, licensed CC BY.
SCOPE Framework
The SCOPE Framework adds the component of social justice, which acknowledges the history of oppression and its impact on educational and social systems. Data in this category can include features of OERs that centre marginalized perspectives. For example, are images in OER representative of different population groups? Do instructors embrace liberatory practices? Do students feel included in course materials?
Basic Questions
- How much does the average student spend on textbooks?
- Did course completion rates or grades change when an OER was introduced?
- How much did students not need to spend on textbooks because of the use of an OER?
 See for example the Virginia Course Materials Survey.
- What is the return on investment of OER funding? This could consider aspects such as student savings as well as secondary impacts to institutional spending based on changes in student retention/success rates.
Resources
- University of Guelph student survey on textbook purchasing behaviours and outcomes
- Student Textbook and Course Materials Survey, Florida Virtual Campus
- Student Textbook and Course Material Survey, SUNY
- Student Surveys
- OER HUB Researcher Pack
- UBC Library Open Education Impact & Activity Report
- Calculating Student Savings
- A New Method for Estimating OER Savings
References
Clinton-Lisell, V. E., Roberts-Crews, J., & Gwozdz, L. (2023). SCOPE of Open Education: A New Framework for Research. The International Review of Research in Open and Distributed Learning, 24(4), 135–153. https://doi.org/10.19173/irrodl.v24i4.7356
Colvard, N. B., Watson, C. E., & Park, H. (2018). The Impact of Open Educational Resources on Various Student Success Metrics. International Journal of Teaching and Learning in Higher Education, 30(2), 262–276.
DawnDena. (n.d.). Financial Impact. Open Education Manitoba. Retrieved July 26, 2024, from https://openedmb.ca/about/financial-impact/
Open Education Group. (2023, March 1). The COUP Framework. https://web.archive.org/web/20230301022358/https://openedgroup.org/coup
Osterman, A. (2021). VIVA, Virginia’s Academic Library Consortium: VIVA: Virginia Course Materials Survey. https://vivalib.org/va/open/survey
PASCAL. (2023). Findings from the Textbook Costs Impact Survey. https://pascalsc.libguides.com/ld.php?content_id=73330989
A framework which looks at Cost, Outcomes, Use, and Perceptions (COUP) as it relates to the impact of OER or open pedagogy.


1 Managerial Accounting and Cost Concepts
Learning Objectives LO
LO1 Distinguish the different purposes of financial accounting and managerial accounting
LO2 Distinguish between product and period costs and classify product costs as direct material, direct labor, or manufacturing overhead
LO3 Distinguish between fixed, mixed, and variable costs, and relate them to cost drivers
LO4 Define the relevant range of production
LO5 Use the high-low method to predict future costs
LO6 Contrast the contribution margin income statement and the traditional income statement
LO7 Construct a traditional income statement
LO8 Construct a contribution margin income statement and calculate the contribution margin amount and ratio
Managerial accounting versus financial accounting LO1
In general, financial accounting is concerned with classifying, recording, and reporting financial transactions in a formal accounting system. Financial accounting is relatively uniform and prescribed by various regulatory bodies, such as the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board. Accountants, higher management, creditors, investors, and other external users are the primary users of financial accounting reports.
Managerial accounting is concerned with classifying, analyzing, and reporting data for internal decision making. Managerial accounting tools are used by management to plan, control, and evaluate business operations and to make internal business decisions. Managerial accounting tools and reports are not prescribed by a regulatory body. Instead, they are customized to meet the specific needs of the organization’s internal users. Managers and internal decision makers are the primary users of managerial accounting reports and tools.
Cost classification: Product or period LO2
Cost classification is the process of separating costs into different categories. The costs incurred by an organization can be classified in many different ways. An important cost classification in accounting is distinguishing product costs from period costs. In financial accounting, product costs are treated differently than period costs. As a general rule, product costs are capitalized as a part of the inventory asset account; whereas, period costs are expensed as incurred.
Product costs are all costs associated with purchasing or producing inventory for resale.
Period costs are all other costs not associated with purchasing or producing inventory for resale but are necessary for sustaining the organization, selling the inventory, and servicing customers.
Merchandising business: Product and period cost classifications
A merchandising business is a business entity that purchases finished inventory products from the business that manufactures the inventory with the intent to resale it and make a profit. A merchandiser makes a profit by marking up the inventory and selling it at a higher price to its customers. Retail stores such as Walmart and Target are examples of merchandising operations.
For a merchandiser, the costs of purchasing and holding the inventory are product costs. All other costs associated with sustaining the organization and selling the product are classified as period costs. Period costs include all non-inventory costs such as rent, utilities, wages, customer service, and advertising. While period costs are important to sustaining the organization, selling the inventory, and servicing customers, they are not included in the cost of the inventory.
To illustrate, assume that Kelly owns a small business selling seat cushions at sporting events. She buys the cushions from a wholesale company for $1 each and resales them to customers at the stadium for $5 each. Last year, she sold 10,500 seat cushions. She also paid $15,000 for rent on her booth and $9,600 for miscellaneous expenses. In this example, product costs are the cost of purchasing the inventory for resell. Product costs are calculated as $1 per cushion times 10,500 sold equals $10,500. Period costs are $15,000 rent plus $9,600 miscellaneous expenses for a total of $24,600. Period costs are the other non-inventory costs Kelly incurred to run her business.
Manufacturing business: Product and period cost classifications
A manufacturing business is a business entity that uses raw materials, parts, or other components to make a finished good. The finished goods are considered inventory in a manufacturing organization. A manufacturer makes a profit by selling the inventory for more than it costs them to produce the inventory for resell.
For a manufacturer, the costs associated with making the inventory are product costs. In manufacturing, the three categories of costs included in product costs are:
Direct materials—raw materials costs that can be easily and economically traced to the production of the product.
Direct labor—manufacturing labor costs that can be easily and economically traced to the production of the product.
Manufacturing overhead—all other indirect costs associated with manufacturing the product that are not direct material or direct labor. All indirect—not direct material or direct labor—costs incurred in the manufacturing process are included in manufacturing overhead. Examples of manufacturing overhead costs include indirect materials, e.g. glue, nails, sandpaper; indirect labor, e.g. the production supervisor’s salary or quality control; and all other production costs incurred to run the production facility, e.g. rent, utilities, and taxes on the production facility.
All other costs associated with sustaining the organization and selling the product are classified as period costs. Period costs include all non-inventory costs such as the costs to provide administrative and selling services including rent, utilities, wages, customer service, and advertising. While period costs are important to sustaining the organization, selling the inventory, and servicing customers, they are not included in the cost of producing inventory.
Video Illustration 1-1: Identifying product and period cost classifications for a manufacturer LO2
Cincy Chips manufactures microchips for small electronic devices. Classify the costs in Exhibit 1-1 as product costs or period costs. If the cost is a product cost, classify the cost as direct material (DM), direct labor (DL), or manufacturing overhead (OH).
The processes to solve the following scenario are demonstrated in Video Illustration 1-1 below.
Exhibit 1-1 Cost classification chart and video explanation
Check your understanding LO2
Cost behavior: Variable, fixed, and mixed LO3
Another important classification in managerial accounting is cost behavior. Cost behavior is how a cost reacts to changes in production, usage, or sales quantity. Cost behavior is classified as variable, fixed, or mixed.
Variable cost—the same cost per unit but the total cost depends on the quantity produced, used, or sold. Variable costs are variable in relation to some kind of activity driver. An activity driver is an activity that causes the incurrence of the variable cost. Common activity drivers are units of sales, units of production, direct labor hours worked, or machine hours used.
Fixed cost—the same cost in total regardless of the quantity produced, used, or sold but the per-unit cost changes depending on the quantity produced, used, or sold.
Mixed cost—a cost that has both a variable and a fixed component. The variable component of a mixed cost must be variable in relationship to an activity driver.
An effective manager must consider cost behavior in order to predict future costs.
To illustrate cost behavior assume that Big Drink Company sells drinks in souvenir cups at an entertainment venue. Big Drink purchases the souvenir cups from a manufacturer for $1 each. Then they sell the cups for $10 filled with the customer’s choice of beverage.
The cost of the souvenir cups is a variable cost. The activity driver is the number of units sold. One units sold requires one cup. The cost per cup is always $1 per unit but the total cost incurred depends on how many drinks are sold. For example, if they sell 100 drinks, the total costs are $1 times 100 equals $100. If they sell 500 drinks, the total costs are $1 times 500 equals $500. Per unit cost is always $1 but total cost changes depending on activity.
The cost of renting the booth at the entertainment venue is a fixed cost. Assume Big Drink pays $3,500 per month to rent a booth at the entertainment venue. The total cost for rent is always the same regardless of how many drinks they sell. However, the per-unit cost allocated to drinks sold changes depending on the quantity sold. For example, if Big Drink sells 100 drinks the rent amount allocated per-unit is $3,500 divided by 100 equals $35 per drink. If they sell 500 drinks, the rent amount allocated per-unit is $3,500 divided by 500 equals $7 per drink. The total cost is always $3,500 but the per unit cost changes depending on activity.
The cost charged for utilities is usually a mixed cost. For example, Big Drink pays a minimum charge regardless of how much electricity is used. The minimum charge is fixed because it does not change depending on actual usage. Then they pay a charge per kilowatt-hour used. Kilowatt-hours used is the activity driver. The charge based on kilowatt-hour is variable since it depends on usage. The total electric bill has both a fixed and variable component so it is considered a mixed cost.
Video Illustration 1-2: Cost classification and cost behavior LOs 2,3
Cincy Chips produces microchips for small electronic devices. They produced and sold 600 microchips in the current month. Select financial data for Cincy Chips is provided in Exhibit 1-2. Determine the cost classifications and cost behavior for the below costs.
The processes to solve the following scenario are demonstrated in Video Illustration 1-2 below.
Exhibit 1-2 Cost classification/behavior chart and video explanation
Check your understanding LO3
Relevant range of production LO4
The relevant range of production is the range between a minimum and a maximum production activity where certain revenue and expense levels can be expected to occur. Revenue and expense amounts will likely increase or decrease when production activity falls outside of the relevant range. In a manufacturing environment, product and period costs can be estimated with a reasonable degree of accuracy within this relevant range of production. Cost estimates are less likely to be accurate when production falls outside of the relevant range.
For example, at Cincy Chips the manufacturing line can produce up to 1,000 units per day. Production in excess of 1,000 units per day would require the company to purchase a new manufacturing line which would significantly change the current cost estimates. Therefore, maximum production in the relevant range is set at 1,000 units.
Predicting mixed costs LO5
As mentioned in the preceding section, a mixed cost has both a variable and a fixed component. The variable component of a mixed cost must change in relation to an activity driver for the cost to be considered mixed. Accordingly, the first step to identify a mixed cost is to verify that the cost has a linear relationship to an activity driver. A linear relationship means that the cost increases or decreases as the activity driver increases or decreases.
A scatter plot chart is used to determine if a cost has a linear relationship to an activity driver. A scatter plot shows if a linear relationship exists between two sets of data – cost and activity driver in this case. If a linear relationship is shown on the scatter plot, then the cost is related to the activity driver. If a linear relationship is not shown on the scatter plot, then the cost is unrelated to the activity driver. A new scatter plot may be prepared to determine if the cost is related to a different activity driver. Alternatively, the cost may increase and decrease randomly, meaning it is not fixed, variable, or mixed. This is uncommon. Most recurring costs can be classified as fixed, variable, or mixed.
Before a scatter plot can be prepared, historical cost data must be collected. To illustrate, assume that maintenance costs are not fixed or variable. The manager believes the number of units produced is the activity driver for maintenance costs. Historical data for five months and the corresponding scatter plot is provided in Exhibit 1-3. Since the scatter plot clearly shows a linear relationship, maintenance cost is considered a mixed cost. The activity driver is the number of units produced.
Exhibit 1-3 Data for maintenance costs and corresponding scatter plot
When a linear relationship exists, the formula for a linear regression line can be used to predict mixed costs. The linear regression line formula is given in Exhibit 1-4. This is also the cost formula used to calculate mixed costs.
Exhibit 1-4 Cost formula to calculate mixed costs
Y = a + bx
High-low method for creating mixed cost formulas
The high-low method is a simple and widely used method to estimate a mixed cost's variable and fixed components. The high-low method assumes that the difference in cost between the highest use observation and the lowest use observation is the variable portion of the cost. This method isolates the variable costs attributed to the difference in the activity driver.
Continuing the example from the preceding section, the high-low method can be used to estimate the fixed and variable components of maintenance cost since the cost was identified as mixed. It is important to note that when the relationship between the cost and the activity driver is not perfectly linear, the resulting cost formula is approximate.
The high-low method has four steps. These steps are outlined below and illustrated using the data in Exhibit 1-3.
Step 1. Find the difference between the highest use observation and lowest use observation.
| Units Produced |
Total costs | |
| Highest (May) | 1,460 | $ 1,060 |
| Lowest (April) | 1,100 | $ 932 |
| Difference | 360 | $ 128 |
Step 2. Calculate the variable cost per unit by dividing the difference in cost by the difference in activity. The difference between the highest use and lowest use is assumed to be the variable portion incurred by the difference in activity.
$128 different in cost / 360 difference in units = $0.356 (rounded) variable cost per unit.
Step 3. For the highest or lowest observation (both will result in the same number), use the variable cost from step 2 to calculate the fixed component.
Lowest observation (May). In May, they produced 1,460 units and $0.356 per unit is variable. Total variable costs are 1,460 x 0.356 = $520 (rounded). Subtract total variable costs from the total costs in May to get total fixed costs, $1,060 – $520 variable = $540 fixed.
Highest observation (April). In April, they produced 1,100 units and $0.356 per unit is variable. Total variable costs are 1,100 x 0.356 = $392 (rounded). Subtract total variable costs from the total costs in April to get total fixed costs, $932 – $392 variable = $540 fixed.
Step 4: Create the cost formula using the data from steps 2 and 3.
The cost formula to estimate maintenance costs is $540 fixed plus $0.356 variable costs per unit of production. Using the Y = a + bx cost formula introduced above, the cost formula for maintenance costs would be stated as $540 + $0.356x, whereas x is the activity driver for the cost.
When the data is not perfectly linear, it is important to note that the cost formula produced by the high-low method only works on the highest and lowest observations since these are the data points used in the calculation. To illustrate, refer to the historical data for maintenance costs given in Exhibit 1-3. In January, 1,260 units were produced, and actual maintenance costs were $980. The high-low method cost formula would predict or estimate the cost for January as $540 fixed + ($0.356 x 1,260) = $989 (rounded). Although the cost formula produces a number that is slightly higher than the actual cost of $980, the estimate is close enough to predict costs for internal managerial accounting purposes.
Video Illustration 1-3: Using cost behavior to predict future costs LO5
Stephanie, the production manager, is collecting data for the November budget. Cost data are generated by the manager for each department. The production manager is responsible for estimating the costs for rent expense, cost of goods sold, and electricity. Data for September and October are provided in Exhibit 1-5. Complete the budget data for November.
The processes to solve the following scenario are demonstrated in Video Illustration 1-3 below.
Exhibit 1-5 Budgeting chart and video explanation
High-low method
Step 1 – Difference Step 2 – Variable cost Step 3 – Fixed cost
Check your understanding LO5
Traditional versus contribution margin income statement LO6
An income statement also referred to as a profit and loss statement, reports an organization’s sales revenue and expenses for a specified period of time. Sales revenue is the income received by a company from its sales of goods or the provision of services. Expenses are the cost of operations that a company incurs to generate revenue. Generally, the benefit of the cost is used in the same period in which the corresponding revenue is reported. The formula to compute net operating income, sometimes referred to as net income or net profit, is the organization’s revenues less its expenses. If an organization has more revenue, the resulting number is positive and represents net income or profit. If an organization has more expenses, the resulting number is negative and represents a net loss.
On a traditional income statement, costs or expenses are classified as product or period. On a contribution margin income statement, costs or expenses are classified as variable or fixed. Regardless of how the costs are classified, reported net operating income or loss is always the same on both income statement formats.
Traditional income statement LO7
A traditional income statement is primarily used for financial reporting purposes. A traditional income statement, reports an organization’s revenue and expenses for a specified period of time. On a traditional income statement, the organization’s expenses are presented based on product cost and period cost classifications.
Video Illustration 1-4: Traditional income statement explained
An example of a traditional income statement is presented in Exhibit 1-6 and discussed in Video Illustration 1-4.
Exhibit 1-6 Traditional income statement and video explanation
Check your understanding LO6, LO7
Video Illustration 1-5: Preparing a traditional income statement LO7
Cincy Chips manufactures microchips for small electronic devices. They produced and sold 600 microchips in the current month. Select financial data for Cincy Chips is provided in Exhibit 1-7. Prepare a traditional income statement.
The processes to solve the following scenario are demonstrated in Video Illustration 1-5 below.
Exhibit 1-7 Financial data, traditional income statement format, and video explanation
Check your understanding LOs 6,7
Contribution margin income statement LO8
A contribution margin income statement is primarily used by internal users, usually management, for planning operations, controlling operations, and making decisions. Like a traditional income statement, the contribution margin income statement reports an organization’s revenue and expenses for a specified period of time. The contribution margin income statement classifies expenses on the basis of cost behavior—variable versus fixed.
Video Illustration 1-6: Contribution margin income statement explained LO8
An example of a contribution margin income statement is presented in Exhibit 1-8 and discussed in Video Illustration 1-6.
Exhibit 1-8 Contribution margin income statement and video explanation
Check your understanding LO8
Video Illustration 1-7: Preparing a contribution margin income statement LO8
Cincy Chips produces microchips for small electronic devices. They produced and sold 600 microchips in the current month. Select financial data for Cincy Chips is provided in Exhibit 1-9. Prepare a contribution margin income statement.
The processes to solve the following scenario are demonstrated in Video Illustration 1-7 below.
Exhibit 1-9 Financial data, contribution margin income statement format, and video explanation
Check your understanding LO8
Practice Video Problems
The chapter concepts are applied to comprehensive business scenarios in the below Practice Video Problems.
Practice Video Problem 1-1: Product, period, fixed, and variable costs LOs 2, 3, 4
Crazy Candy’s Carpets makes whimsical and eccentric rugs. The relevant range of production is 10,000 to 14,000 units per month. When she produces and sells 12,000 units the average costs per unit are as follows:
Required 1: What is the total amount of product costs incurred to make 14,000 units?
Required 2: What is the total amount of period costs incurred to sell 14,000 units?
Required 3: What is the total amount of costs incurred to make and sell 11,000 units?
Practice Video Problem 1-2: Traditional income statement LO6
Magick Musicals sells custom guitars that they purchase from a local artist. Magick purchases the guitars from the artist for $960 each, marks them up, and resells them for $2,200 each. Magick’s general and administrative costs are presented below.
In May, Magick purchased and sold 150 guitars.
Required: Prepare a traditional format income statement for May
Practice Video Problem 1-3: Contribution margin income statement LO7
Magick Musicals sells custom guitars that they purchase from a local artist. Magick purchases the guitars from the artist for $960 each, marks them up, and resells them for $2,200 each. Magick’s general and administrative costs are presented below.
In May, Magick purchased and sold 150 guitars.
Required: Prepare a contribution margin income statement for May. Show revenue and variable costs on both a total and a per-unit basis.
Review Questions
Review questions reinforce the chapter content.
Review 1-1
Review 1-2
Review 1-3
Review 1-4
Review 1-5
Review 1-6
Review 1-7
Homework Questions
Homework questions can be used for additional practice or can be assigned in an academic setting. Full feedback is not available online. Homework questions can be assigned, with auto-grading and export, to specific learning management platforms, e.g., Canvas, Blackboard, etc. Contact the author for details.
Homework 1-1
Homework 1-2
Homework 1-3
Homework 1-4
Homework 1-5
Homework 1-6
Homework 1-7
Homework 1-8
Homework 1-9
Homework 1-10
Financial accounting is concerned with classifying, recording, and reporting financial transactions in a formal accounting system
Managerial accounting is concerned with classifying, analyzing, and reporting data for internal decision making.
Cost classification is the process of separating costs into different categories.
Product costs are all costs associated with purchasing or producing inventory for resale.
Period costs are all other costs not associated with purchasing or producing inventory for resale but are necessary for sustaining the organization, selling the inventory, and servicing customers.
A merchandising business is a business entity that purchases finished inventory products from the business that manufactures the inventory with the intent to resale it and make a profit. A merchandiser makes a profit by marking up the inventory and selling it at a higher price to its customers
A manufacturing business is a business entity that uses raw materials, parts, or other components to make a finished good.
Direct materials are raw materials costs that can be easily and economically traced to the production of the product.
Direct labor is manufacturing labor costs that can be easily and economically traced to the production of the product.
Manufacturing overhead are all other indirect costs associated with manufacturing the product that are not direct material or direct labor.
Cost behavior is how a cost reacts to changes in production, usage, or sales quantity. Cost behavior is classified as variable, fixed, or mixed.
Variable costs are the same cost per unit but the total cost depends on the quantity produced, used, or sold.
An activity driver is an activity that causes the incurrence of the variable cost. Common activity drivers are units of sales, units of production, direct labor hours worked, or machine hours used.
Fixed cost is the same cost in total regardless of the quantity produced, used, or sold but the per-unit cost changes depending on the quantity produced, used, or sold.
Mixed cost is a cost that has both a variable and a fixed component.
The relevant range of production is the range between a minimum and a maximum production activity where certain revenue and expense levels can be expected to occur.
A scatter plot shows if a linear relationship exists between two sets of data.
The high-low method is used to estimate the variable and fixed components of a mixed cost. The difference between the highest use observation and the lowest use observation is considered the variable portion of the cost.
An income statement also referred to as a profit and loss statement, reports an organization’s revenue and expenses for a specified period of time.
Sales revenue is the income received by a company from its sales of goods or the provision of services.
An expense is a cost of operations that a company incurs to generate revenue. Generally, the benefit of the cost is used in the same period in which the corresponding revenue is reported.
The formula to compute net operating income, sometimes referred to as net income or net profit, is the organization's revenues less its expenses.
An income statement reports an organization’s sales revenue less its expenses (costs) for specified period of time. On a traditional income statement, costs are classified as product or period.
An income statement reports an organization’s sales revenue less its expenses (costs) for specified period of time. On a contribution margin income statement, costs are classified as variable or fixed.


The core threat to biodiversity on the planet, and therefore a threat to human welfare, is the combination of human population growth and the resources used by that population. The human population requires resources to survive and grow, and many of those resources are being removed unsustainably from the environment. The three greatest proximate threats to biodiversity are habitat loss, overharvesting, and the introduction of exotic species. The first two directly result from human population growth and resource use. The third results from increased mobility and trade. A fourth major cause of extinction, anthropogenic (human-caused) climate change, has not yet had a large impact, but it is predicted to become significant during this century. Global climate change is also a consequence of the human population’s need for energy and the use of fossil fuels to meet those needs (Figure 1). Environmental issues, such as toxic pollution, have specific targeted effects on species but are not generally seen as threats at the magnitude of the others.
Habitat Loss
Humans rely on technology to modify their environment and make it habitable. Other species cannot do this.  Remove the entire habitat, and the species will become extinct unless they are among the few species that do well in human-built environments. Human destruction of habitats (habitat generally refers to the part of the ecosystem required by a particular species) accelerated in the latter half of the twentieth century.
Consider the exceptional biodiversity of Sumatra: it is home to one species of orangutan, a species of critically endangered elephant, and the Sumatran tiger, but half of Sumatra’s forest is now gone. The neighboring island of Borneo, home to other orangutan species, has lost a similar forest area. Forest loss continues in protected areas of Borneo. The orangutan in Borneo is listed as endangered by the International Union for Conservation of Nature (IUCN). Still, it is simply the most visible of thousands of species that will not survive the disappearance of the forests of Borneo. The forests are removed for timber and to plant palm oil plantations (Figure 2). Palm oil is used in many products, including food products, cosmetics, and biodiesel in Europe. A 5-year estimate of global forest cover loss from 2000 to 2005 was 3.1%. Much loss (2.4%) occurred in the tropics, where forest loss is primarily from timber extraction. These losses certainly also represent the extinction of species unique to those areas.
Most consumers do not imagine their home improvement products might contribute to habitat loss and extinction of species. Yet the market for illegally harvested tropical timber is huge, and the wood products often find themselves in building supply stores in the United States. One estimate is that up to 10% of the imported timber in the United States, the world’s largest consumer of wood products, is illegally logged. In 2006, this amounted to $3.6 billion in wood products. Most illegal products are imported from countries that act as intermediaries and are not the originators of the wood.
How is it possible to determine if a wood product, such as flooring, was harvested sustainably or legally? The Forest Stewardship Council (FSC) certifies sustainably harvested forest products. Looking for their certification on flooring and other hardwood products is one way to ensure that the wood has not been taken illegally from a tropical forest. There are certifications other than the FSC, but these are run by timber companies, thus creating a conflict of interest. Another approach is to buy domestic wood species. While it would be great if there was a list of legal versus illegal woods, it is not that simple. Logging and forest management laws vary from country to country; what is illegal in one country may be legal in another. Where and how a product is harvested and whether the forest from which it comes is being sustainably maintained all factor into whether a wood product will be certified by the FSC. It is always a good idea to ask where a wood product came from and how the supplier knows it was harvested legally.
Habitat destruction can affect ecosystems other than forests. Rivers and streams are important ecosystems and are frequently the target of habitat modification. Damming of rivers affects flow and access to habitat. Altering a flow regime can reduce or eliminate populations adapted to seasonal flow changes. For example, an estimated 91% of riverways in the United States have been modified with damming or stream bank modification. Many fish species in the United States, especially rare species or species with restricted distributions, have seen declines caused by river damming and habitat loss. Research has confirmed that species of amphibians that must carry out parts of their life cycles in aquatic and terrestrial habitats are at greater risk of population declines and extinction because of the increased likelihood that one of their habitats or access between them will be lost. This is of particular concern because amphibians have been declining in numbers and going extinct more rapidly than many other groups for various reasons.
Overharvesting
Overharvesting is a serious threat to many species, particularly to aquatic species. Many examples of regulated fisheries (including hunting marine mammals and harvesting crustaceans and other species) monitored by fisheries scientists have nevertheless collapsed. The western Atlantic cod fishery is the most spectacular recent collapse. While it was a hugely productive fishery for 400 years, the introduction of modern factory trawlers in the 1980s and the pressure on the fishery made it unsustainable. The causes of fishery collapse are both economic and political in nature.
Most fisheries are managed as a common resource, available to anyone willing to fish, even when the fishing territory lies within a country’s territorial waters. Common resources are subject to an economic pressure known as the tragedy of the commons, in which fishers have little motivation to exercise restraint in harvesting a fishery when they do not own the fishery. The general outcome of harvests of resources held in common is their overexploitation. While large fisheries are regulated to attempt to avoid this pressure, it still exists in the background. This overexploitation is exacerbated when access to the fishery is open and unregulated, and technology allows fishers to overfish. In a few fisheries, continuing overfishing is more profitable than waiting for the fishery to recover. In these cases—whales are an example—economic forces will drive the fishing population to extinction.
Explore a U.S. Fish & Wildlife Service interactive map (http://openstaxcollege.org/l/habitat_map2) of critical habitats for endangered and threatened species in the United States. To begin, select “Visit the online mapper.”
Coral reefs are extremely diverse marine ecosystems that face peril from several processes. Reefs are home to 1/3 of the world’s marine fish species—about 4000 species—despite making up only one percent of marine habitat. Most home marine aquaria house coral reef species that are wild-caught organisms—not cultured organisms. Although no marine species are known to have been driven extinct by the pet trade, studies show that some species’ populations have declined in response to harvesting, indicating that the harvest is not sustainable at those levels. There are also concerns about the effect of the pet trade on some terrestrial species, such as turtles, amphibians, birds, plants, and even the orangutans.
Bush meat is the generic term used for wild animals killed for food. Hunting is practiced worldwide, but hunting practices, particularly in equatorial Africa and parts of Asia, are believed to threaten several species with extinction. Traditionally, bush meat in Africa was hunted to feed families directly. However, recent commercialization of the practice now has bush meat available in grocery stores, which has increased harvest rates to the level of unsustainability. Additionally, human population growth has increased the need for protein foods that agriculture does not meet. Species threatened by the bush meat trade are mostly mammals, including many monkeys and the great apes in the Congo basin.
Invasive Species
Exotic species are species that humans have intentionally or unintentionally introduced into an ecosystem in which they did not evolve. Human transportation of people and goods, including the intentional transport of organisms for trade, has dramatically increased the introduction of species into new ecosystems. These new introductions are sometimes at distances well beyond the species’ capacity to ever travel itself and outside the range of the species’ natural predators.
Most exotic species introductions probably fail because of the low number of individuals introduced or poor adaptation to the ecosystem they enter. Some species, however, have characteristics that can make them especially successful in a new ecosystem. These exotic species often undergo dramatic population increases in their new habitat and reset the ecological conditions in the new environment, threatening their species. When this happens, the exotic species also become an invasive species. Invasive species can threaten other species through resource competition, predation, or disease.
Explore this interactive global database (http://openstaxcollege.org/l/exotic_invasiv2) of exotic or invasive species.
Lakes and islands are particularly vulnerable to extinction threats from introduced species. In Lake Victoria, the intentional introduction of the Nile perch was largely responsible for the extinction of about 200 species of cichlids. The accidental introduction of the brown tree snake via aircraft (Figure 4) from the Solomon Islands to Guam in 1950 has led to the extinction of three species of birds and three to five species of reptiles endemic to the island. Several other species are still threatened. The brown tree snake is adept at exploiting human transportation to migrate; one was found on an aircraft arriving in Corpus Christi, Texas. Constant vigilance on the part of the airport, military, and commercial aircraft personnel is required to prevent the snake from moving from Guam to other islands in the Pacific, especially Hawaii. Islands do not comprise a large area of land on the globe, but they contain a disproportionate number of endemic species because of their isolation from mainland ancestors.
Many introductions of marine and freshwater aquatic species have occurred when ships have dumped ballast water taken on at a port of origin into waters at a destination port. Water from the port of origin is pumped into tanks on a ship empty of cargo to increase stability. The water is drawn from the ocean or estuary of the port and typically contains living organisms such as plant parts, microorganisms, eggs, larvae, or aquatic animals. The water is pumped out before the ship takes on cargo at the destination port, which may be on a different continent. The zebra mussel was introduced to the Great Lakes from Europe before 1988 in ballast water. The zebra mussels in the Great Lakes have created millions of dollars in clean-up costs to maintain water intakes and other facilities. The mussels have also altered the ecology of the lakes dramatically. They threaten native mollusk populations but have benefited some species, such as smallmouth bass. The mussels are filter feeders and have dramatically improved water clarity, which has allowed aquatic plants to grow along shorelines, providing shelter for young fish where they did not exist before. The European green crab, Carcinus maenas, was introduced to San Francisco Bay in the late 1990s, likely in ship ballast water, and has spread north along the coast to Washington. The crabs have been found to dramatically reduce the abundance of native clams and crabs, increasing the prey species of those native crabs.
Invading exotic species can also be disease organisms. It now appears that the global decline in amphibian species recognized in the 1990s is, in some parts, caused by the fungus Batrachochytrium dendrobatidis, which causes the disease chytridiomycosis (Figure 5). Evidence shows that the fungus is native to Africa and may have been spread worldwide by transporting a commonly used laboratory and pet species: the African clawed frog, Xenopus laevis. It may well be that scientists themselves are responsible for spreading this disease worldwide. The North American bullfrog, Rana catesbeiana, which has been widely introduced as a food animal but which easily escapes captivity, survives most infections of B. dendrobatidis and can act as a reservoir for the disease.
Early evidence suggests that another fungal pathogen, Geomyces destructans, introduced from Europe, is responsible for white-nose syndrome, which infects cave-hibernating bats in eastern North America and has spread from the point of origin in western New York State (Figure 6). The disease has decimated bat populations and threatens the extinction of species already listed as endangered: the Indiana bat, Myotis sodalis, and potentially the Virginia big-eared bat, Corynorhinus townsendii virginianus. How the fungus was introduced is unknown, but one logical presumption would be that recreational cavers unintentionally brought the fungus onto clothes or equipment from Europe.
Climate Change
Climate change, specifically the anthropogenic warming trend presently underway, is recognized as a major extinction threat, particularly when combined with other threats such as habitat loss. Anthropogenic warming of the planet has been observed. It is due to past and continuing emissions of greenhouse gases, primarily carbon dioxide, and methane, into the atmosphere caused by burning fossil fuels and deforestation. Scientists overwhelmingly agree humans cause the present warming trend, and some of the likely effects include dramatic and dangerous climate changes in the coming decades. Scientists predict that climate change will alter regional climates, including rainfall and snowfall patterns, making habitats less hospitable to the species living in them. The warming trend will shift colder climates toward the north and south poles, forcing species to move (if possible) with their adapted climate norms.
The shifting ranges will impose new competitive regimes on species as they are in contact with other species not in their historic range. One such unexpected species contact is between polar bears and grizzly bears. Previously, these two species had separate ranges. Their ranges overlap, and there are documented cases of these two species mating and producing viable offspring. Changing climates also reduce species’ delicate timing adaptations to seasonal food resources and breeding times. Scientists have already documented many contemporary mismatches to resource availability and timing shifts.
Other shifts in the range have been observed. For example, one study indicates that, on average, European bird species ranges have moved 91 km (56.5 mi) northward. The same study suggested that the optimal shift based on warming trends was double that distance, suggesting that the populations are not moving quickly enough. Range shifts have also been observed in plants, butterflies, other insects, freshwater fishes, reptiles, amphibians, and mammals.
Climate gradients will also move up mountains, eventually crowding species higher in altitude and eliminating the habitat for those species adapted to the highest elevations. Some climates will completely disappear. The rate of warming appears to be accelerated in the Arctic, which is recognized as a serious threat to polar bear populations that require sea ice to hunt seals during the winter months. Seals are a critical source of protein for polar bears. A decreasing sea ice coverage trend has occurred since observations began in the mid-twentieth century. The rate of decline observed in recent years is far greater than previously predicted by climate models.
Finally, global warming will raise ocean levels due to meltwater from glaciers and the greater volume occupied by warmer water. Shorelines will be inundated, reducing island size, which will affect some species, and a number of islands will disappear entirely. Additionally, the gradual melting and subsequent refreezing of the poles, glaciers, and higher-elevation mountains—a cycle that has provided freshwater to environments for centuries—will be altered. This could result in an overabundance of salt water and a shortage of fresh water.
Suggested Supplementary Reading:
Hall. S. 2017. Could Genetic Engineering Save the Galápagos? Scientific American. December. p. 48-57.
This article explores the destructive nature of invasive species in the Galápagos Islands. Traditional efforts to eradicate invasive species, such as rats, can be expensive and cause ecological harm through the widespread distribution of poison. An alternate approach is genetic engineering in the form of a “gene drive,” an emerging technology that could be better – or worse – for the environment.


247 The Emirates of the Arabian Peninsula
34.4.3: The Emirates of the Arabian Peninsula
The emirates of the Middle East (the United Arab Emirates, Qatar, and Kuwait) are monarchies ruled by emirs and represent some of the wealthiest Arab nations.
Learning Objective
Compare and contrast the emirates of the Arabian Peninsula
Key Points
- Most emirates have either disappeared, been integrated in a larger modern state or changed their rulers’ styles. True emirate-states have become rare, with only three in existence today.
- The United Arab Emirates is a federal state that comprises seven federal emirates, each administered by a hereditary emir. These form the electoral college for the federation’s President and Prime Minister.
- The UAE is criticized for its human rights record, including the specific interpretations of Sharia law used in its legal system that make flogging and stoning legal punishments.
- Qatar has the highest per capita income in the world, backed by the world’s third largest natural gas reserves and oil reserves.
- Kuwait is among the Middle East’s freest countries in terms of civil liberties and political rights, and Kuwaiti women are among the most emancipated in the Middle East.
- Unlike other Gulf states, Kuwait does not have Sharia courts.
Key Terms
- Arab Spring
- A revolutionary wave of both violent and non-violent demonstrations, protests, riots, coups, and civil wars in the Arab world that began on December 17, 2010, in Tunisia with the Tunisian Revolution, and spread through the Arab League and surrounding countries. Major insurgencies and civil wars in Iraq, Libya, Syria, and Yemen resulted, along with civil uprisings in Bahrain and Egypt; large street demonstrations in Algeria, Iran, Lebanon, Jordan, Kuwait, Morocco, Oman, and Sudan; and minor protests in Djibouti, Mauritania, the Palestinian territories, Saudi Arabia, Somalia, and the Western Sahara.
- Emirate
- A political territory is ruled by a dynastic Islamic monarch-style emir. It also means principality.
- Apostasy
- A person’s formal renunciation of a religion, also used in the broader context of embracing an opinion contrary to one’s previous beliefs.
- Sharia law
- The religious law governing the members of the Islamic faith. It is derived from the religious precepts of Islam, particularly the Quran and the Hadith.
United Arab Emirates
The United Arab Emirates, or the UAE, is a federal absolute monarchy in Western Asia at the southeast end of the Arabian Peninsula and bordering seas in the Gulf of Oman, occupying the Persian Gulf. It borders with Oman to the east and Saudi Arabia to the south, although the United Arab Emirates shares maritime borders with Qatar in the west and Iran in the north and sea borders with Iraq, Kuwait, and Bahrain. In 2013, the UAE’s population was 9.2 million, of which 1.4 million are Emirati citizens and 7.8 million are expatriates.
The country is a federation of seven emirates that was established on December 2nd, 1971. The constituent emirates are Abu Dhabi (which serves as the capital), Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Quwain. Each emirate is governed by an absolute monarch; together, they jointly form the Federal Supreme Council. One of the monarchs is selected as the President of the United Arab Emirates. Although elected by the Supreme Council, the presidency and prime ministership are essentially hereditary. The emir of Abu Dhabi holds the presidency, and the emir of Dubai is prime minister.
Islam is the official religion of the UAE,and Arabic is the official language, although English and Indian dialects are widely spoken and are the languages of business and education, especially in Abu Dhabi and Dubai.
The UAE’s oil reserves are the seventh-largest in the world, while its natural gas reserves are the 17th-largest. Sheikh Zayed, ruler of Abu Dhabi and the first President of the UAE, oversaw the development of the Emirates and steered oil revenues into health care, education, and infrastructure. The UAE’s economy is the most diversified in the Gulf Cooperation Council, with its most populous city of Dubai an important global city and international aviation hub. Nevertheless, the country remains principally reliant on its export of petroleum and natural gas.
The UAE is criticized for its human rights record, including the specific interpretations of Sharia used in its legal system. Flogging and stoning have been legal punishments in the UAE, a requirement derived from Sharia law. Some domestic workers in the UAE are victims of Sharia judicial punishments such as flogging and stoning. The annual Freedom House report on Freedom in the World has listed the United Arab Emirates as “Not Free” every year since 1999, the first year for which records are available on their website. UAE has escaped the Arab Spring; however, more than 100 Emirati activists were jailed and tortured because they sought reforms. Since 2011, the UAE government has increasingly carried out forced disappearances. Many foreign nationals and Emirati citizens have been arrested and abducted by the state.
Qatar
Qatar is a sovereign country located in Western Asia, occupying the small Qatar Peninsula on the northeastern coast of the Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its territory surrounded by the Persian Gulf. A strait in the Persian Gulf separates Qatar from the nearby island country of Bahrain, and maritime borders are shared with the United Arab Emirates and Iran.
Following Ottoman rule, Qatar became a British protectorate in the early 20th century until gaining independence in 1971. Qatar has been ruled by the House of Thani since the early 19th century. Sheikh Jassim bin Mohammed Al Thani was the founder of the State of Qatar. Qatar is a hereditary monarchy and its head of state is Emir Sheikh Tamim bin Hamad Al Thani. Whether it should be regarded as a constitutional or an absolute monarchy is a matter of opinion. In 2003, the constitution was overwhelmingly approved in a referendum, with almost 98% in favor. In 2013, Qatar’s total population was 1.8 million, with 278,000 Qatari citizens and 1.5 million expatriates.
Qatar is a high-income economy and a developed country, backed by the world’s third largest natural gas reserves and oil reserves. The country has the highest per capita income in the world. Qatar is classified by the UN as a country of very high human development and is the most advanced Arab state for human development. Qatar is a significant power in the Arab world, supporting several rebel groups during the Arab Spring both financially and through its globally expanding media group, Al Jazeera Media Network. For its size, Qatar wields disproportionate influence in the world, and has been identified as a middle power.
Sharia law is the main source of Qatari legislation according to Qatar’s Constitution. In practice, Qatar’s legal system is a mixture of civil law and Sharia law. Sharia law is applied to laws pertaining to family law, inheritance, and several criminal acts (including adultery, robbery and murder). In some cases in Sharia-based family courts, a female’s testimony is worth half a man’s. Codified family law was introduced in 2006. Islamic polygamy is allowed in the country. Stoning is a legal punishment in Qatar, while apostasy is a crime punishable by the death penalty. Blasphemy is punishable by up to seven years in prison and proselytizing can be punished by up to 10 years in prison.
Kuwait
Kuwait is a country in Western Asia. Situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, it shares borders with Iraq and Saudi Arabia. As of 2016, Kuwait has a population of 4.2 million people; 1.3 million are Kuwaitis and 2.9 million are expatriates (70% of the population).
Oil reserves were discovered in 1938. From 1946 to 1982, the country underwent large-scale modernization. In the 1980s, Kuwait experienced a period of geopolitical instability and an economic crisis following the stock market crash. In 1990, Kuwait was invaded by Iraq. The Iraqi occupation came to an end in 1991 after military intervention by coalition forces. At the end of the war, there were extensive efforts to revive the economy and rebuild national infrastructure.
Kuwait is a constitutional emirate with a semi-democratic political system. It has a high-income economy backed by the world’s sixth largest oil reserves. The Kuwaiti dinar is the highest-valued currency in the world. According to the World Bank, the country has the fourth-highest per capita income in the world.
The Constitution of Kuwait was promulgated in 1962. Kuwait is among the Middle East’s freest countries in terms of civil liberties and political rights. Kuwait ranks highly in regional metrics of gender equality, with the region’s highest Global Gender Gap ranking. The court system in Kuwait is secular; unlike other Gulf states, Kuwait does not have Sharia courts.
Attributions
The Emirates of the Arabian Peninsula
“United Arab Emirates.” https://en.wikipedia.org/wiki/United_Arab_Emirates. Wikipedia CC BY-SA 3.0.
“Qatar.” https://en.wikipedia.org/wiki/Qatar. Wikipedia CC BY-SA 3.0.
“Kuwait.” https://en.wikipedia.org/wiki/Kuwait. Wikipedia CC BY-SA 3.0.
“800px-Burj_Khalifa.jpg.” https://en.wikipedia.org/wiki/File:Burj_Khalifa.jpg. Wikipedia GNU FDL 1.2.
“1920px-Secretary_Kerry_Meets_With_Amir_Hamad_bin_Khalifa_al-Thani.jpg.” https://commons.wikimedia.org/wiki/File:Secretary_Kerry_Meets_With_Amir_Hamad_bin_Khalifa_al-Thani.jpg. Wikimedia Commons Public domain.