Module I - Assessment of Inherent Risk 1. See Figure BR.A-Biltrite’s organizational chart. Based on the chart and the case description‚ the following strengths and weaknesses should be identified: STRENGTHS: • The structure shows adequate separation within the CBIS function‚ i.e.‚ systems analysis and programming are separate from data processing and control (implications for control risk assessment) • Separation is also maintained between the accounting and finance functions (implications
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a lot higher than promised in the budget. The following cost formulas were used to construct the planning budget: Required: 1. Prepare a new performance report for September using the fl exible budget approach. 2. Do you think any of the variances in the report you prepared should be investigated? Why? 1. Performance should be evaluated using a flexible budget performance report. In this case‚ the report will not include revenues (shown in East Caribbean dollars). St. Lucia Blood Bank
Free Caribbean West Indies Federation Saint Lucia
greater than the budgeted level of activity. As a consequence‚ the average cost per unit for any cost that is fixed or mixed (such as office expenses‚ equipment depreciation‚ rent‚ and insurance) should decline and show a favorable variance. This makes it difficult to interpret the variance for a mixed or fixed cost.
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Competition Bikes Inc. Storyline Operational Analysis 03/10/2014 WGU JET2 Financial Analysis Task 2 Introduction In this task‚ the budget schedule and proformas as well as the flexible budget were reviewed. Below you will find my analysis and recommended corrective actions as well as how management by exception applies. Budget Planning Concerns Competition Bikes has a good starting point for a budget but is overall weak and has several budgetary concerns. A few of those items are
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scores was 11.74. The distribution of the 25 scores is seen as well. The two most frequently scored categories are undecided and unfavorable. The category with the fewest respondent is favorable. TABLE 2: Distribution of Scores Attitude Categories Score Range Frequency Very Favorable 117-140 Favorable 93-116 2 Undecided 69-92 13 Unfavorable 45-68 8 Very Unfavorable 20-44 The 13 hypotheses listed in the Literature Review section were statistically tested. Each hypothesis is again listed
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| | -358 | Diversified/Delivery | -243 | | -243 | Variances | | | | Variable cost adjustment | | | 54 | Variable efficiency variance | | | 241 | Fixed cost adjustment | | | 88 | Fixed spending variance | | | 498 | Production volume variance | | | -5250 | Interest | | | 25 | Period costs | | | -17 | Total | 4579 | | -2881 | As we can see from the above table‚ NASA achieved a favorable variance in sales‚ but not in profits. Therefore‚ one might start
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shortfall. Based on his analysis‚ he will explain this variance fully and make recommendations to senior management. Analysis of Loss The rates and the number of units sold determine planned and actual result differences‚ representing the variance. Variances are used in performance evaluation to determine areas that are performing differently than expected. As noted in chapter seven‚ focusing on understanding what caused the variances allows managers to more completely handle what is happening
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Running Head: BUDGET SUMMARY REPORT Competition Bikes Inc. Budget Analysis Summary Report In Partial Fulfillment of the Requirements for JET2 Western Governors University Competition Bikes Inc. Budget Analysis Summary Report Budgetary Concerns There are several budget areas in Competitions Bikes year nine budget forecast that are areas for concern. The factory overhead budget for the year was budgeted at $481‚798 less $150‚000 depreciation. Total depreciation over the last three years has
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COMPREHENSIVE PROBLEM 6 Utease Corporation 60 Strong This problem covers various topics from Chapters 22‚ 23‚ 24‚ and 25. Students are asked to prepare budget schedules‚ calculate variances‚ determine possible causes for differences between budgeted and actual results‚ and to perform ROI analysis. Copyright © 2015 by McGraw-Hill Education All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 60 Minutes‚ Strong COMPREHENSIVE PROBLEM 6
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The amount of the variance is -$164‚450 which is not favorable due to being required to lower other costs and expenses to maintain any sort of profit. Next variance is with Direct Material in the amount of -$71‚828. This is projected as a positive action because it assists with the offsetting of Net Sales being -$164‚450 by $71‚828. Next variance is Manufacturing Overhead in the amount of -$10‚398. This will offset Net Sales as well. Next variance is Variable Selling Expenses in
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