Answer:
The rule should be made about the display of the garden ornaments. The home owners should be allowed to display garden ornaments that they like.
Explanation:
Many home owners like to decorate their house and the garden area ear their house. They use to place ornaments and decorations that look pleasant to them but others might not like them. If a home places a gnome their own house value will be decreased by $20,000. As some people do not like gnomes they will consider it to rotten the beauty of the house resulting in the decrease in value of the house. As a director of home owners I would not let everyone do whatever they like instead rules should be set which will result in the maximization of the property value.
What are three advantages and three disadvantages of globalization
What's in Start knowing yourself better. Kindly work with a partner (anyone who is available to give you some assistance) and assess how well you know yourself by listing down your values, characteristics and/or traits using the Four Quadrants of oneself. (Be guided by the instructions below.) Be able to discuss to your teacher/guide or partner/buddy the result of this activity using your output. 1. Values you know well you possess II. Values you and others knew you possess III. Values you and others hardly knew you possess IV. Values others knew well you possess II Well-known by self alone self and others Well-known by Hardly known by self and others others alone Well-known by IV.
Self-knowledge is important in all walks of life.
The more an individual knows his personality, the greater his capacity for development, improvement of his abilities and reduction of his weak points.
In the social and professional scope, self-knowledge is a guide for the individual to react to life situations with greater vision, wisdom and balance.
The Four Quadrants of oneself is a model of description of the human interaction process created by psychologists that divides personal consciousness into four quadrants into:
open, hidden, blind and unknown.This technique helps in understanding the emotional and physical relationship of people with them and with other people, it is used to improve the performance of employees in companies, in a self-help context, in group therapy, etc.
Therefore, you can use the Four Quadrants model to improve your self-knowledge and personal development.
This is a personal matter, so it should be done exclusively by you!
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how do I calculate the gain on disposal of these assets
To calculate the gain on disposal of assets, you need to use the following formula:
Gain on disposal = Proceeds from disposal - Carrying amount of the asset (i.e. Cost of the asset - Accumulated depreciation)When an asset is sold, the company receives cash which is known as the proceeds from disposal.
The carrying amount of the asset represents the historical cost of the asset less accumulated depreciation on the asset over its useful life.
Suppose a company sells a machine for $20,000. The original cost of the machine was $30,000, and its accumulated depreciation is $10,000. Then, the gain on disposal of the machine will be:Gain on disposal = $20,000 - ($30,000 - $10,000) = $20,000 - $20,000 = $0
Therefore, in this case, there is no gain or loss on the disposal of the machine.
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The following data relate to direct labor costs for the current period:
Standard costs
9,000 hours at $5.50
Actual costs
8,500 hours at $5.75
What is the direct labor rate variance?
Answer:$2,125 unfavorable
Explanation:
Given
Standard costs 9,000 hours at $5.50
Actual costs 8,500 hours at $5.75
we have two formulas to calculate for direct labor rate variance is:
1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour
=( $5.75 -$5.50) x 8,500 = $2,125 unfavorable
2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours
=Actual Hours x Actual Rate -Actual Hours x Standard Rate
= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)
$48,875 - $46,750 = $2,125 unfavorable
when the actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.
My name is Felicia McMillian, and I was referred to you by a friend. I have a question about what I should do with my money. I've been working as a pharmaceutical sales representative for just two years now, but I've already started investing a little bit of my money. Right now, I have a checking account, a money market account, and I've started buying small bonds. I am beginning to earn a little more money, and I'm starting to think about future goals, like buying a house, helping my kids pay for college, retirement. . . all things that are more than 10 years down the road. What would you advise me to do at this point?
Josephine owns a large cattle ranch out in Montana. While she enjoys being her own
boss and being able to spend time in the outdoors, she finds it tedious to comply
with regulations pertaining to land management and what else?
healthcare regulations
environmental quality
transportation limitations
advancing technology
Josephine finds it tedious to comply with regulations pertaining to land management and environmental quality.
What is environmental quality?
"Environmental Quality" refers to a group of environmental traits that have an impact on people and other living things, whether they are general or specific. It is a gauge of how well an environment meets the needs of one or more species, as well as any human need or goal.
Environmental quality refers to both the constructed environment and the natural environment, and encompasses factors like air quality, water quality or pollution, noise levels, and any potential consequences that these factors may have on one's physical and emotional well-being.
"Environmental Quality" refers to a group of environmental traits that have an impact on people and other living things, whether they are general or specific.
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Mrs. Williams finds that she has two options for investing $32,000.02 for fifteen years. The first option is to deposit the $32,000.02 into a fund earning a nominal rate of discount d(4) payable quarterly. The second option is to purchase an annuity-immediate with 15 level annual payments, the annuity payments computed using an annual effective rate of 7%, and then when she gets an annuity payment, to immediately invest it into a fund earning an annual effective rate of 5%. Mrs. Williams calculates that the second option produces an accumulated value that is $1,500 more than the accumulated value yielded by the first option. Calculate d(4).
Answer:
faith
Explanation:
Which of the following markets is an example of monopolistic competition?
Answer: The restaurant industry
Explanation:
Answer:A new pizza shop promotes a unique new flavor of ice cream
List the entities and personnel involved in an Automobile's Repair Shop's "supply chain" 1. How do you think these do or should all work together? 2. How do you think it could be improved?
The entities and personnel involved in an Automobile's Repair Shop's "supply chain are;
the parts manufacturers auto mechanics electriciansThey should work together so that the final consumer who were the owners of the automobiles can get their cars repaired.
It can be improved if the parts manufacturers make the parts to be available at cheaper rate for the shops that are dealing with the mechanical work.
What is supply chain?A supply chain can be described as the network of all the individuals, as well as entity that are responsible for the creation and sale of a product.
For instance the Automobile's Repair Shop's encompass the activities of the the parts manufacturers , auto mechanics and electricians which are chains to be followed in order to get the automobiled repaired.
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What motivation theories apply to the workers at Aramark?
The two-element theory of Herzberg served as the foundation for the employees' motivation.
What is motivation theories?Understanding what motivates a person to work toward a specific goal or result is the subject of motivation theory. Everybody of society can benefit from it, but business and management stand to gain the most.
This is so because motivated employees are more productive, and more lucrative employees are those that are more productive.
Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, McClelland's Three Needs Theory, and McGregor's Theory X, Theory Y are four fundamental theories of motivation.
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Use the Internet to research careers in information technology. Jot down answers to these questions:
What kinds of careers are available in IT?
What kinds of responsibilities, tasks, and skills does a person have or need to be successful in this field?
Create a two-column chart. In the first column, list what you would say in the ad. Keep your sentences short, use strong verbs, and be persuasive. In the second column, list effects for the ad. For example, you might include upbeat music at the start of the ad and describe sound effects.
Principle benefits of the usage of the net for your activity search encompass the capability to: get entry to timely activity notices across the clock. Discover unusual or hard-to-find career data. Speak with experts or aid corporations in specialized areas.
Information technology specialists look at, design, increase, put in force, support, and control pc-primarily based facts systems, including each software program and laptop hardware.
Almost every organization desires a team of savvy pc professionals to maintain its structures up and walking. You could discover work in pretty much every industry you want, including economic offerings, enjoyment, authorities, hospitality, healthcare, manufacturing, retail and extra.
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How do taxes affect people from different socio-
economic backgrounds ?
The valuation of the cat food business is based on cash flows of $180,500 per year over a five year period. The target business has the same risk as the firm’s overall operations. The cost of equity is 15 percent and the cost of debt is 3 percent on an after-tax basis. The firm’s capital structure consists of 10 million in equity and 8 million in debt.
What is the most the pet-food manufacturer should pay for acquiring the cat food business per its required return (WACC)?
Answer: $690,044
Explanation:
First calculate WACC.
Total capital = 10 + 8 = $18 million
WACC = (Weight of debt * after-tax cost of debt) + (weight of equity * cost of equity)
= (8/18 * 3%) + (10/18 * 15%)
= 9.67%
Using the WACC, find the present value of the cashflows for the next 5 years. This will be an annuity.
= 180,500 * (1 - (1 + r) ^-n)/r
= 180,500 * ( 1 - ( 1 + 9.67%) ^ -5)/9.67%
= $690,044.67
= $690,044
They should pay no more than this present value.
1- In 2013, Walmart decided to enter the Indian market in a joint-venture with Bharti Enterprises. Based upon your analysis of Walmartâs global expansion up to that point, do you think it was a good idea to go to India? To select joint-venture mode of entry?
2- In general, what do you think is the best way to enter a new market: acquisition, joint venture, or greenfield investment? (please compare and contrast) What is the impact on the Supply Chain? What are the location characteristics that affect this decision? What are the firm characteristics that affect this decision? What industry characteristics affect the decision?
Answer:
1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.
2- To enter a new market Joint-venture will be suitable because:
In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.
Explanation:
1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.
2- To enter a new market Joint-venture will be suitable because:
In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.
(5 points)
Willie's Hot Dogs had sales last year of $250,300 and a guest count of 76,079.
Sales this year were $280,750 with a guest count of 83,556.
What was Willie's guest count percentage variance?
Willie's guest count percentage variance is 9.82%.
How to calculate guest count percentageTo calculate the guest count percentage variance
Use the following formula:
Guest count percentage variance = [(current year guest count - prior year guest count) / prior year guest count] x 100%
Guest count percentage variance = [(83,556 - 76,079) / 76,079] x 100%
Guest count percentage variance = (7,477 / 76,079) x 100%
Guest count percentage variance = 0.0982 x 100%
Guest count percentage variance = 9.82%
Therefore, Willie's guest count percentage variance is 9.82%.
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In the context of the SPIN (situation questions, problem questions, implication questions, and need payoff questions) technique, which of the following best exemplifies a situation question? Multiple Choice a. Do you intend to upsize your workforce in the near future? b. Do you have trouble meeting inventory requirements? c. Would you be interested if I promised you a 25 percent return on investment?
d. Have you been facing any bandwidth problems?
e. Does missing a deadline have serious implications for your firm?
Do you struggle to meet inventory requirements is a situation question that is part of the SPIN technique of situation questions, problem questions, implication questions, and need payoff questions. Hence, option (B) is the one that should be chosen.
What is meant by Inventory Model?An inventory model is a mathematical tool that assists businesses in determining the ideal level of inventories that should be maintained in a production process, managing ordering frequency, determining the amount of goods or raw materials to be stored, and tracking the flow of supply of goods and raw materials to ensure continuous service to customers with no delivery delays.
When the inventory level falls below a fixed quantity
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What is the best way to prevent the transmission of Hepatitis B?
Vaccination
Avoidance of situations where the virus could be present
Improper disposal of sharps
None of the above, because Hepatitis B is not a communicable
disease
Answer:
A! But in addition to vaccination, there are other simple ways to help stop the spread of hepatitis B:
Wash your hands thoroughly with soap and water after any potential exposure to blood
Use condoms with sexual partners
Avoid direct contact with blood and bodily fluids
Clean up blood spills with a fresh diluted bleach solution (mix 1 part bleach with 9 parts water)
Cover all cuts carefully
Avoid sharing sharp items such as razors, nail clippers, toothbrushes, and earrings or body rings
Discard sanitary napkins and tampons into plastic bags
Avoid illegal street drugs (injecting, inhaling, snorting, or popping pills)
Make sure new, sterile needles are used for ear or body piercing, tattoos, and acupuncture
Explanation:
Types of conclusion
In a nut shell, when you look
In a nut shell, when you look belongs to reflective type of conclusion. Hence, the type of conclusion in the phrase above is reflective conclusion. Read below about types of conclusion
What are the types of conclusion?Majorly, the types of conclusion include: embedded, retrospective, reflective, and projective forms are four main types of conclusions applicable for different academic papers when writing.
Therefore, the correct answer is reflective conclusion. This is so, because, the introductory phrase after the transitional marker signals reflection, 'when you look...' hence, the correct address is reflective conclusion.
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Why u think the porcentage of tax filers has most dramatically increased for the 65+ age group?
Answer:
The more people that retire, the more it increased.
Explanation:
Typically when people retire, they get their taxes filed. The percentage of the 65+ age group who have their taxes filed increases the more people who retire, then typically use tax filers.
Answer: The percentage of tax filers has most dramatically increased for the 65+ age group because
more people in the 65+ community are retiring and so, they are getting their taxes filed.
Good luck!
(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
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6. The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $3,000 B. Raw materials used by Job 1: $500 C. Raw materials used as indirect materials: $100 D. Direct labor for Job 1: $300 E. Indirect labor incurred: $50 F. Factory utilities incurred on account: $700 G. Adjusting entry for factory depreciation: $250 H. Manufacturing overhead applied as percent of direct labor: 200% 1. Job 1 is transferred to finished goods J. Job 1 is sold: $3,000 K. Manufacturing overhead is over applied: $100
A company's financial transaction must be recorded as a journal entry, which includes a debit and a credit.
These journal entries are used to record the following transactions:
A. Purchase of raw materials on account: $3,000 - Debit Raw Materials Inventory $3,000; Credit Accounts Payable $3,000
B. Raw materials used by Job 1: $500 - Debit Work-in-Process Inventory $500; Credit Raw Materials Inventory $500
C. Raw materials used as indirect materials: $100 - Debit Manufacturing Overhead $100; Credit Raw Materials Inventory $100
D. Direct labor for Job 1: $300 - Debit Work-in-Process Inventory $300; Credit Wages Payable $300
E. Indirect labor incurred: $50 - Debit Manufacturing Overhead $50; Credit Wages Payable $50
F. Factory utilities incurred on account: $700 - Debit Manufacturing Overhead $700; Credit Accounts Payable $700
G. Adjusting entry for factory depreciation: $250 - Debit Manufacturing Overhead $250; Credit Accumulated Depreciation $250
H. Manufacturing overhead applied as a percent of direct labor: 200% - Debit Work-in-Process Inventory $600; Credit Manufacturing Overhead $600
I. Job 1 is transferred to finished goods - Debit Finished Goods Inventory $500; Credit Work-in-Process Inventory $500
J. Job 1 is sold: $3,000 - Debit Accounts Receivable $3,000; Credit Sales $3,000; Debit Cost of Goods Sold $500; Credit Finished Goods Inventory $500
K. Manufacturing overhead is over-applied: $100 - Debit Cost of Goods Sold $100; Credit Manufacturing Overhead $100
In conclusion, a journal entry records a financial transaction by debiting one account and crediting another account. When preparing a journal entry, it's important to ensure that the total of debits equals the total of credits.
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Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $4,300 and a fair market value of $15,000. Kelsey will invest a building with a book value of $34,600 and a fair market value of $57,600. What amount will be recorded to Kelsey's capital account
Answer: $57600
Explanation:
The capital account of a business indicates the net worth it that particular business. The fair value of an asset brings about an increase to the capital account.
In this scenario, the amount that will be recorded to Kelsey's capital account will be her fair market value of the building which is $57,600.
The following data was collected from the manufacturing of an auto component. It represents the diameter (in mm) of that component. What is the LCL for a control chart using this data (z=3)?Sample Obs 1 Obs 2 Obs 3 Obs 41 10 12 12 142 12 11 13 163 11 13 14 144 11 10 7 85 13 12 14 13
Answer:
9.37
Explanation:
The computation of LCL for a control chart is shown below:-
Sample Obs 1 Obs 2 Obs 3 Obs 4 Mean observation Range
1 10 12 12 14 12 4
2 12 11 13 16 13 5
3 11 13 14 14 13 3
4 11 10 7 8 9 4
5 13 12 14 13 13 2
For computing the mean observation and range we will use the below formulas
Mean observation = ( Obs 1 + Obs 2 + Obs 3 + Obs 4) ÷ 4
Range = Highest value - Lowest value
\(LCL = \bar{\bar{X}} - A2 \bar{R}\)
\(\bar X\) = ( 12 + 13 + 13 + 9 + 13 ) ÷ 5
= 12
\(\bar R\) = ( 4 + 5 + 3 + 4 + 2 ) ÷ 5
= 3.6
Since we found the value of A2 with the help of constants table for control charts for a 4 subgroup size.
A2 = 0.729
\(LCL = \bar{\bar{X}} - A2 \bar{R}\)
12 - 0.729 × 3.6
= 9.37
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons.
Rate: Maturity Month/Year: Bid: Asked: Change: Ask Yield:
?? May 36 103.4599 103.5327 +.3287 5.979
6.202 May 39 104.4939 104.6396 +.428 ?? ??
6.158 May 45 ?? ?? +.5392 4.01
In the above table, find the Treasury bond that matures in May 2039. What is your yield to maturity if you buy this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
After calculations, we can conclude that the coupon rate in the given situation is 6.248.
What is the coupon rate?The annual income an investor might anticipate while owning a specific bond is known as the coupon rate.
The calculation is done by dividing the total of the annual coupon payments by the par value, and it is established at the time the bond is issued.
A bond's yield to maturity and coupon rate are equal at the time of purchase.
So, here in the given situation:
= PMT (rate, nper, pv, [fv], [type])
Tenure of bond = 2019 -2039
Tenure of bond = 20 years
Current price of bond = $2,000x96.865%
Current price of bond = 1937.3
Par value of bond = $2,000
Current price of bond = $1937.3
Yield of Maturity = 6.53%
Tenure of bond = 20 Years
=PMT({6.53%/4} ,{20*4} ,-1937.3, 2000)
PMT= 31.24
Coupon rate = 31.24 x (4/2000) x 100
Coupon rate = 6.248
Therefore, after calculations, we can conclude that the coupon rate in the given situation is 6.248.
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Correct question:
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons.
Company Coupon Maturity LP LY EST
Xenon, Inc. (XIC)6.700 Jan 15, 2036 94.313 ?? 57,375
Kenny Corp. (KCC)7.250 Jan 15, 2033 ?? 6.28 48,954
Williams Co. (WICO)?? Jan 15, 2039 96.865 6.53 43,815
What is the coupon rate for the Williams Co. bond?
Owing to his impulsive buying habits, Ronnie's unpaid credit card balances pile up to $9,000. As Ronnie does not have enough money to clear his bills, he is in a deep financial crisis. In this scenario, the first step that Ronnie should take is to:
In case of financial crisis where Ronnie is under debt is advised to avoid further usage of his credit card.
What is financial crisis?Financial crisis for an individual is when he is under huge debt and lacks money to clear his dues towards the creditors. In the above case, Ronnie is under financial crisis due to a credit card bill of $9000.
Ronnie lacks money to repay the amount of debt, and thus he is advised to stop using his credit card so that his debts do not pile up more. Also, he is advised to take financial help from a friend, so he can pay the bill, and avoid reducing his credit rating.
Hence, the steps to be taken by Ronnie during the condition of financial crisis are as aforementioned.
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Sarah has a class assignment to debate how globalization has impacted business organizations. She will need to research both positive and negative effects of having a global economy. What are four arguments she can make about how the global economy impacts business organizations?
The four arguments that she can make about how the global economy impacts business organizations are:
It enabled firms to specialize to increase the intensity of R&Dto bring about innovation increase capital in their output.What is the impact of the global economy ?It should be noted that the global economy is very essential factor that has been able to influence the globe, however the characteristic elements that that can be associated to the economic globalization are:
the ability to have a cross-border flows of goods as well as services the ability to have a cross-border flows of capitalthe ability to have a cross-border flows of people.the ability to have a cross-border flows of data the ability to have a cross-border flows of ideas.In conclusion, the Globalization help the people of the world especially businesses as well as new companies to be able to conveniently compete with old incumbents.
It should be noted that this has helped the trade sector to increased the number of people that works for them accross the globe.
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Will give BRAINLIEST
negotiate a venue for a year end function
Answer: Year-end function planning with my tips
Involve management in the arrangements.
Set the date.
Decide on a theme.
Get a venue.
Decide on food and be mindful of allergies, cultures, and eating habits.
Make personal and exciting online invitations.
Arrange for group shuttle services for safe transportation.
Always keep the budget in mind.
Explanation:
Done this before.
Industry standards suggest that 7% of new vehicles require warranty service within the first year. Jones Nissan in Sumter, South Carolina, sold 9 Nissans yesterday. (Round your mean answer to 2 decimal places and the other answers to 4 decimal places.)
a. What is the probability that none of these vehicles requires warranty service?
b. What is the probability exactly one of these vehicles requires warranty service?
c. Determine the probability that exactly two of these vehicles require warranty service.
d. Compute the mean and standard deviation of this probability distribution.
The standard deviation is 0.749 and the probability distribution's mean is 0.63.
What is Standard Deviation?A set of data values' variation or dispersion from their mean (average) is measured by their standard deviation. It tells how far apart the individual data points are from the data set's mean value. To put it another way, it is a measure of how different the data are from the mean. A standard deviation that is smaller indicates that the data points are closer to the mean, while a standard deviation that is larger indicates that the data points are further from the mean. It is calculated by taking the square root of the variance, and it is frequently used in statistical analysis.
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Zigzag Manufacturing has just hired a new controller, Leslie Demorest. During her first week on the job, Leslie was asked to establish a budget for operating expenses in 2019. Since Leslie was not yet familiar with the operations of Zigzag Manufacturing, she decided to budget these expenses using the same procedures as the prior controller. Therefore, in order to establish a budget for operating expenses, Leslie started with actual operating expenses incurred in 2018 and added 3.8%. Leslie based this percentage on inflation as measured by the consumer price index.
Required: Comment on the effectiveness of Leslie’s budgeting strategy.
Answer:
Zigzag Manufacturing
The Effectiveness of Leslie Demorest's Budgeting Strategy
The strategy of adjusting the previous year's operating expenses with inflation is not an effective way of strategic budget planning. Leslie's budgeting strategy does not take advantage of forecasts of unexpectedly good performance and fails to provide any reaction that can occur when there are downturns in cash flow.
An effective budgeting strategy should provide the standard for the effective use of financial resources of Zigzag Manufacturing in its business operations. There are no clear goals to be achieved and an evaluation of how the goals will be achieved through the budget implementation.
Explanation:
An effective budget should be able to forecast and track revenues and expenses, which are received and incurred in pursuit of business goals and projections. An effective budget ensures that those who implement the projections contained in the budget remain motivated. The idea of adjusting previous expenses with inflation is not an effective budgeting strategy.