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1 year ago

Discuss which financial management practices are least effective in creating and monitoring an operating budget.

1 answer:

6 0

Top down/bottom up budgets, lack of control, poor inventorying, lack of staff investment, over control are the least effective financial management practices in creating and monitoring an operating budget.

The operating budget includes the expenditures and revenues generated by the company's daily business functions. The operating budget focuses on operating expenses, such as the cost of goods sold in the market, also known as the cost of sold goods (COGS), and revenue or income. COGS is the cost of direct labor and direct materials used in the production process.

The operating budget also includes overhead and administration costs that are directly related to manufacturing goods and providing services. However, capital expenditures and long-term loans will not be included in the operating budget. Budgets for sales, production process or manufacturing, labor, overhead, and administration are a few examples of frequently utilized operating budgets.

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Say the average increase in pay for non-union workers in 2011 is 2% across the U.S. If a workers' union successfully negotiates

4vir4ik [10]

Answer:

cut back the expansion of labor as a trade off between higher salaries but fewer workers.

Explanation:

If the employer believes that he is paying above average wages, he will try to reduce labor costs. Since unions are specially good in preventing massive layoffs, the other alternative left for the employer is to not hire new employees, or reduce the number of new employees that he expected to hire.

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2 years ago

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years.

erastovalidia [21]

Answer:

Effect on income= -$18,000

Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

Year 0= -112,000 + 21,200= -90,800

Year 1 to 4= 18,200*4= 72,800

Effect on income= -90,800 + 72,800= -18,000

7 0

3 years ago

When venturing into a foreign country for business, which controllable risk will you most likely face?

OLEGan [10]

The answer would be C worker strikes due to cultural differences

4 0

3 years ago

It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling i

Gnoma [55]

Answer:

B.both the short run and long run.

8 0

3 years ago

Read 2 more answers

On December 31, 2020, BEL Company had 300,000 shares of common stock issued and outstanding. BEL issued a 5% stock dividend on J

KIM [24]

Answer:

297,500 shares

Explanation:

Basic Earning per share is calculated dividing Earning for the year excluding preferred dividend by weighted average number of shares.

Weighted average number of shares are used to calculate the basic earning per share.

Weighted Average Number of Diluted Shares = (300,000 x 6/12 ) + ( 300,000 x 105% x 3/12 ) + [ ( (300,000 x 105%) - 40,000) x 3/12 ) ]

Weighted Average Number of Shares = 150,000 + 78,750 + 68,750

Weighted Average Number of Shares = 297,500 shares

6 0

3 years ago