CHAPTER 9 PROFIT PLANNING AND BUDGETING Questions‚ Exercises‚ Problems‚ and Cases: Answers and Solutions 9.1 See text or glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center‚ management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs‚ revenues‚ and assets. A profit center is not responsible
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SAMPLE ANSWER FOR QUESTION 5 Profit-making is one of the most traditional‚ basic and major objectives of a firm. Profit-motive is the driving-force behind all business activities of a company. It is the primary measure of success or failure of a firm in the market. Profit earning capacity indicates the position‚ performance and status of a firm in the market. In spite of several changes and development of several alternative objectives‚ profit maximization has remained as one of the single most important
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Throughout history there are very few things that have stayed the same. Everything is bound to change at some point. Child labor has changed immensly in the last 150 years. Laws have been into place to restrcit adults from demanding the labor of children in factories. The people who ran these factories tried to portray their bussiness as safe enviorments for children to work in‚ but if child was able to makes it through each day without gettig injured was almost a miracle. The letter explains a
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Assignment 2 (20 points) Assignment 2: Costs and Profit Instructions Save this file in your course folder‚ and name it with Assignment‚ the section number‚ and your first initial and last name. For example‚ Jessie Robinson’s assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day‚ be sure to save your
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NOT-FOR-PROFIT ORGANISATIONS 13 2 Not-for-profit organisations Key points Many not-for-profit organisations (NFPs) feel they are poorly understood by government and the general public. Pressures to be more efficient have seen overhead spending reduced at considerable detriment to effectiveness and improved resource allocation over time (allocative efficiency). The sector is diverse‚ but NFPs display some common behavioural patterns: – Whereas the behaviour of for-profit business is driven mostly
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My last year of Junior High School turned out to be the most stressful and nerve wracking‚ yet most memorable year of my life. Being a Grade 10 student who was counting down my days in the institution‚ I was determined to be active in all school events‚ contests or organizations while maintaining a high academic ranking and a booming social life. I decided to acknowledge my potential to do anything that I wanted and challenged myself to join in all extra-curricular activities that sparked my interest
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bankrupt. The tax code favored the richest Americans. Healthcare costs were rising at astronomical rates. Illegal Immigration had become a central issue. Foreign Oil costs were killing the wallets of Americans at the gas pumps. President Obama‚ in four years‚ has either reversed these issues or has accomplished more by passing laws to help the everyday American‚ than any President in modern history. In November of 2008 President Obama was elected President of the United States. No president had inherited
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Q: How has technology changed in the past 10 years? A: The biggest technology change of the last 10 years is the proliferation of the internet into mainstream society. It started with the widespread adoption of email. From that modest foothold‚ the internet grew to become what it is today: the de-facto medium for human communication. Q: Why has it changed? A: The internet is a better mousetrap. Before‚ we had snail mail‚ telephones‚ newspapers‚ encyclopedias‚ libraries‚ record albums‚ radio
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Quiz Non Profits Name_____________________________________________ 1. FASB require the balance sheets of not-for-profits to display a) Net assets in four separate categories—unrestricted‚ temporarily restricted‚ permanently restricted‚ and restricted by creditors. b) Three separate funds—unrestricted‚ temporarily restricted‚ and permanently restricted net assets. c) Six totals—total assets‚ total liabilities‚ total net assets‚ total unrestricted net assets‚ total temporarily
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Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources‚ including those owned by the firm. Therefore‚ profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make
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