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2 years 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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On January 1, 2021, G Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that

Julli [10]

Answer: $20,000

Explanation: This question deals with Compensated Absence.

A compensated absence refers to paid holidays and other paid time off. According to accounting principles, expenses are recognized in the same period they are incurred. When it comes to compensated absences that are deferred to a later year (or period), the amount must be recorded as a liability in the year they are incurred.

Because of this, $40,000 (an average of $800 per week for a total of 500 vacation weeks) will be charged to 2021 expense as a liability.

The amount of salaries expense related to 2022 compensated absence is the average 5% pay rise in 2022.

The amount is therefore 5% X $800 X 500 weeks = $20,000

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3 years ago

Karen makes $10 per hour and is paid time and

lozanna [386]

Answer:

B.$520

Explanation:

52 x 10

=520

5 0

3 years ago

On January 1, 2005 Franz Company purchased a truck that cost $22,000. The truck had an expected useful life of 5 years and a $4,

allochka39001 [22]

Answer: The amount of depreciation expense recognized in 2006, using the double declining balance method is $5,280.

And the journal entries required are:

Debit Depreciation expense $5,280

Credit Accumulated depreciation $5,280

Explanation: The double-declining method is otherwise known as reducing balance method. It is usually derived by using the formula below:

Double-declining depreciation = 2 X SLDP X BV

Where SLDP = straight-line depreciation percentage

BV = Book value of the asset (Cost minus depreciation)

So using the straight-line depreciation method, we need to remove the salvage value from the cost and then divided by 5 years. That is, ($22,000 - $4,000) / 5 years = $3,060 yearly depreciation expense.

However, under the double-declining method, we need to divide the 100% by the useful life of the asset first to get the SLDP then multiply by 2, that is, 100%/5 years = 20% x 2 = 40%.

So 40% x $22,000 in year 1 (December 31, 2005) is $8,800

In year 2 (December 31, 2006), 40% x $13,200 ($22,000 - $8,800) = $5,280 and so on. The depreciation expense would stop immediately it falls below the salvage value of $4,000.

So the book value of the asset at the end of year 2 is $7,920 ($13,200 - $4,000 accumulated depreciation).

5 0

3 years ago

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An advantage of magazine advertising is that:

earnstyle [38]

Answer:

A suitable advantage of magazine advertisement is option C.

Explanation:

The magazine may be meant only for men or only for women or for both. Thus a suitable magazine maybe selected to make an appeal to a particular section of the community.

By using magazines as a medium for advertising, an appeal can be made to a large body of persons with similar tastes or covering a large area.

In the 21st century, promoting in print or in computerized magazines may appear to be silly. TV arrives at millions additional customers. Publicizing on your site costs not exactly on television. Furthermore, aren't magazines collapsing left and right?

In actuality, the magazine business, even in printed copy, is progressing nicely. New magazines are continually showing up, and various them succeed and flourish. Purchasing promotion space may not be modest, however it tends to be compelling.

Slender Focal point of Interests

Satellite television has some specialty stations, however magazines take practicing to the following level. Promoting in a magazine that takes into account a specialty crowd of devotees or experts focuses on that crowd absolutely.

Stogie Enthusiast provides food solely to stogie smoking perusers. Author's Review perusers are keen on whatever helps their composing professions. Crossties is the authoritative manual for the railroad crosstie industry. In the event that a magazine serves your fantasy segment, it could be a match made in heaven.

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3 years ago

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Explain the role of finance in business

nadezda [96]

Answer:

Definition 1:

FINANCE is the function in a business responsible for acquiring funds for the firm, managing funds within the firm, and planning for the expenditure of funds on various assets. ... FINANCIAL MANAGEMENT is the job of managing a firm's resources so it can meet its goals and objectives.

Definition 2:

Finance is critical in just about every business decision, from planning and budgeting and cash flow management to the capital structure and how you control risks and costs.

(please note that this was found by doing research.)

Hope this helps!

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3 years ago

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