Guillermo could use budget and performance reports to assist in managing and putting into practice accounting plans. The Guillermo Furniture Store should use budgets because they are the most important plans for ensuring that management is using the proper methods of teaching and enforcing acceptable patterns of behavior. If the company does not have a budget, their planning possibly will not obtain the principle spotlight that it typically should have (Horngren, 2008). All of the collected facts and data that is incorporated in a financial statement or income statement will show management how the operating expenses and cash flow is going through a monthly or quarterly report. The Guillermo Furniture Store could use the budgets to help Guillermo in making up his mind regarding staying in business or looking at other options. Guillermo could use the collected facts and data to estimate the monetary value of a profit on money that has been invested as well as earnings by value paid for the business. Guillermo could use budget reports from prior year’s to achieve an breakdown that will help with the companies determination to perhaps reduce expenses or locate favorable…
A budget is an instrument used to help managers ensure that the resources used effectively and proficiently toward the goals of an organization. A budget projection can be made on a yearly base depending on previous year or existing one. They can further be broken down quarterly or monthly depending on it use. Generating a budget is complex undertaking, and for a budget to be effective the organization ought to follow it strictly. However, no matter how closely a business follows their guidelines there will always be some form of variances. The organization should expect a few variances and be able to work these discrepancies in any budget constraints.…
GOAL 1: With the introduction of 20 new products, sales targets for the store are calculated as last year’s figure plus 30%. Stores will be set a weekly budget with all staff budgets calculated as a percentage of their roster time.…
Budgets are planning and control tools for management and, therefore, help to make proactive decisions about business. Being a financial instrument budget includes all revenues and expenditures and provides spending guidelines for the manager as well as sets performance expectations. Guillermo can use budgets to compare his alternatives and carefully examine all avoidable and unavoidable costs. The key to determining the financial difference between alternatives is to identify the differential costs and revenues. (Horngren et al, 2008) The differential costs and revenues analysis is called incremental analysis. By examining all the relevant costs and revenues Guillermo can decide which alternative to choose and, therefore, to obtain the greatest contribution possible. The company will use the contribution to pay the unavoidable costs. The unavoidable costs will remain the same regardless of any decision, so the key is picking the alternative that will contribute the most toward paying off these costs. (Horngren et al, 2008)…
Marston Corporation manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in the United States and Canada. The sales agents sell a variety of products to hospitals in addition to Marston’s disposable thermometer. The sales agents are currently paid an 18% commission on sales, and this commission rate was used when Marston’s management prepared the following budgeted income statement for the upcoming year. Marston Corporation Budgeted Income Statement Sales Cost of goods sold: Variable Fixed Gross margin Selling and administrative expenses: Commissions Fixed advertising expenses Fixed administrative expenses Net operating income $30,000,000 $17,400,000 2,800,000…
• Analysis of past records has shown that credit sales are collected over a three-month period, with 50 per cent being collected in the month of the sale, 40 per cent in the next month, and the remainder in the following month.…
The sales agents want sales commissions increased to 20%, this will caused the commission to agents would increase to $3,200,000 (20%X $16,000,000).…
Throughout, history companies have always had an innovative methodology of maximizing profits or services in ways to stand out above their competition. In order for a company to stay in tune with the overall company’s objective, they have to develop some method of planning and control, which is called budgeting. (Brewer, Garrison, Noreen, 2010) The budget is the beginning of a plan of behavior expressed in monetary terms. It plays a critical role in planning, controlling, and decision-making. Budgets also offer healthier communications and harmonization amongst all stages of management. (Abello, 2010) This research will analyze data as to how Proctor and Gamble (P&G) and Federated Department Stores budgets reflect reality.…
• Explain how effective cost and value management would have helped in the successful completion of the project.…
The U.S. Coast Guard, U.S. Forest Service, U.S. National Oceanic and Atmospheric Administration and the U.S. Secret Service all serve as executive departments within the federal government.…
When planning a budget for any new product or service is an important step in any new building of a product. Knowing how much money that the company has available to spend on marketing and promotion of the new product is key. Sticking to that budget is away to show that the Nike Company can stay on track and stick to the plans and follow through with commitments will make the company better. When planning a budget for a new product there are many items to keep in mind without a good plan behind the budget the budget will not work.…
This paper will focus on the excellent functions, operations and management of the Good Samaritan Health Center in Atlanta, Georgia. Access to health care is the ability to obtain healthcare services when needed. Millions of people lack adequate access for millions of people in the United States (Bodenheimer and Grumback). Over one million Georgians, have no health insurance. Non-financial barriers to health care include the inability to get care when needed, language, literacy, and cultural differences between patients and health care-givers, as well as factors of gender and race (Bodenheimer and Grumback).…
adjust? Or was it, as others suggested, that Monitor had priced itself out of the…
1. In my opinion, the firm should not close its domestic operations due to the tremendous difference in wage rates. Because total costs include not only the cost of labor. Production at the firm's foreign subsidiary has many advantages. The cost to transport products to the firm's distribution center is cheaper than at the domestic plant in eighteen times. Internal company has a lower the price of cotton fabrics and much more productivity of products.…
4) The cost-benefit balance is the primary consideration in choosing among accounting systems and methods.…