Question 12
What are the tools used to implement fiscal policy?

Answers

Answer 1

The authorities possesses essential economic gear for influencing the economic system. These gear may be divided into spending gear and sales gear.

The required details for Fiscal coverage in given paragraph

Fiscal coverage" refers to selections the U.S. authorities makes approximately spending and gathering taxes and the way those coverage adjustments have an effect on the economic system. When the authorities makes monetary selections, it has to don't forget the impact the ones selections may have on companies, consumers, overseas markets, and different involved entities. Alternate definition: Fiscal coverage additionally refers back to the financial motive at the back of the selections for a way the cash is used. For example, governments can decrease taxes and lift spending to reinforce the economic system if needed; typically, they spend on infrastructure initiatives that create jobs and earnings and social programs.

Or, if the economic system is doing well, a central authority can lessen spending and boom taxes. Businesses create sufficient jobs at those instances so officers can lessen the quantity spent on items and offerings from the personal sector.

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Related Questions




QUESTION 1
Give ONE word or a term for each of the following descriptions. Write only the word or
term next to the question number (1.1-1.10) on the attached ANSWER SHEET

The costs incurred prior to opening doors and making sales to provide a cash
flow

The most common instrument for collecting primary data

Is appointed by the owner of an existing business enterprise to manage the
business

Have a higher than normal price to create an image of exclusivity.

Establishing the size or number of customers in an area

Products purchased only after customers have comparad a variety of similar
and competitive products

A distinguished product from similar competitive products

The idea being to gain quick acceptance and extensive distribution in the
market

That something that your business should have to make it unique, and which
your competitors do not have

The point at which the total expenditure of a business is equal to the total
income

Answers

Answer:

Explanation:

They have a higher than normal price to create an image of exclusivity

Pls help me
include the following:
The name of the career
Some information you learned from your own research
Education a person needs to get this type of job
Skills a person needs to get this type of job
How people in this job use technology
The URL (web address) of the US Bureau of Labor Statistics website where readers can find more information

Answers

Data from the Consumer Expenditure Surveys (CE) Interview Survey and Diary Survey are obtained by asking respondents questions about their spending, earnings, and personal characteristics.

What is the interview?

An interview is an organized dialogue in which one person asks questions and the other responds. The term “interview” is commonly used to refer to a one-on-one talk between an interviewer and an interviewee. Individual and group interviews are the two forms of interviews. Interviews with individuals:

Respondents are questioned to collect data for the Consumer Expenditure Surveys (CE) Interview Survey and Diary Survey. On a straightforward one-screen form, select the BLS databases' data that you require. a form-based query tool that gives you access to BLS time series data based on your selections.

Therefore, Data from the Consumer Expenditure Surveys (CE) Interview Survey and Diary Survey are obtained by asking respondents

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Q1. The goal of the firm is to create value for the company's owners. This is often defined as maximizing shareholder’s wealth. However, is this definition too narrow and overly focused on the short term? Could such a short-term focus create long-term problems for the company? Explain by providing some examples. Do you think this is a problem in UAE?

Answers

The policy of wealth maximization serves as an operating management policy. It supports the interests of loan providers, employees, management, and society.

Aside from stockholders, there are short-term and long-term fund suppliers with a financial interest in the company. Short-term lenders are generally interested in liquidity levels in order to get timely payments. Long-term lenders receive a predetermined rate of interest from earnings and have priority over shareholders in exchange for their cash.

As a result, wealth maximization indicates the firm's long-term existence and expansion. According to the aforementioned facts, the firm's purpose is to produce value for the company's shareholders. This is frequently defined as increasing shareholder wealth.

UAE is a visionary country; their goals are not short-term; they think in such a way that their next decade will be magnificent, and they keep modifying things as and when necessary; they have a long-term vision, therefore this would not be a problem for UAE, in my opinion.

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QUESTION 16
Which of the following statements is true about target marketing?
O a. is no longer used by most companies today
O b. it is not an efficient marketing strategy to attract customers
O c. it allows you to focus on those people most likely to buy your company's products
O d. follows the same strategies used for mass marketing

Answers

The true statements about the target marketing is that it allows you to focus on those people most likely to buy your company's products

What is a target marketing?

In marketing, a target market refers to the group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service. It is also a marketing strategy that breaks a market into segments and then concentrates your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings.

The purpose of a Target Market is that once a target market is identified, it can influence a product's design, packaging, price, promotion and distribution.

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Entrepreneurship is when someone:
a.) does not work for hourly pay, but instead pays themself.
b.) goes into a business partnership with a co-founder.
c.) sets up, founds, or develops a unique business.
d.) looks for ways to make money in unique ways.

Answers

Entrepreneurship is when someone sets up, founds, or develops a unique business. option C is the answer

Who is an Entrepreneur?

An entrepreneur is an individual with a unique idea that s aimed as problem solving.

The person identifies a problem and then create a lasting solution that will bring about opportunities and satisfaction to the people.

An entrepreneur bears the risk that comes from starting or establishing a new business and create opportunity around it.

Therefore, someone who sets up, founds, or develops a unique business is an entrepreneur.

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Why are companies required to perform payroll withholding?
A. To make sure employees are being paid fairly
B.
To make sure employees can pay their taxes
C. To help employees save for retirement
D. To help the company pay its share of taxes

Answers

Companies are required to perform payroll withholding to make sure employees can pay their taxes.

What is a payroll?

A payroll is a list of the employees of a company who are eligible for payments as well as other work benefits, together with the amounts that should be paid to them. Payroll can refer to a company's records of payments made to employees in the past, such as salaries and wages, bonuses, and taxes withheld, or it can refer to the department within the company that deals with compensation, in addition to the amounts that each employee should receive for time worked or tasks completed. A business has the option of managing every step of the payroll process internally or outsourcing certain steps to a payroll processing firm. Employee exemptions, record-keeping standards, and tax laws are among the federal, state, and local restrictions that apply to payroll in the United States.

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Write an essay where you explain internal environmental analysis as part of the strategic management process. Use your own detailed examples to explain the analysis.

Answers

An organization's internal components are examined as part of an internal analysis to determine its capabilities, assets, traits, competences, and competitive advantages.

What internal environmental analysis management process?

Any detailed examination of all facets of a business' operations, internal policies, and mission is known as an internal environmental study. Usually, the company's leadership, vision, and manufacturing capability are examined, along with the marketing plan.

An internal analysis examines elements of your company, such as your advantages and disadvantages.

Therefore, You may get a clear view of your current condition and the measures you can take to plan your marketing by looking at your internal and external assessments side by side.

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84. In FIFO method of inventory valuation?
a)Closing stock is at latest price
b)Issue of stocks to production is at earliest price
c)Both (a) & (b)
d)Neither (a) nor (b)

Answers

In FIFO method of inventory valuation, Issue of stocks to production is at earliest price.

What is FIFO method of inventory valuation?First in, first out (FIFO) is an easy-to-understand inventory valuation method that implies commodities acquired or manufactured first are sold first. In theory, this means that the oldest inventory is supplied to clients first, followed by fresher inventory.What comes in first must go out first, according to the FIFO approach. For example, if a batch of 1,000 things is created in the first week of a month and another batch of 1,000 items is made in the second week, the batch produced first is sold first. The FIFO approach is designed to avoid inventory obsolescence.

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Which utilities are included in the cost of the monthly rent payments? *

Answers

The utilities that are included in the cost of the monthly rent payments are utilities for properties such as:

garbage, cable, water and sewer, and security.

What are utilities?

Utilities are the primary services one's house, apartment, or enterprise needs to keep it comfortable and running properly. General utilities include water, sewer, electric, gas, trash, and recycling. Technological utilities such as cable, internet, security, and phone services can also be termed utilities.

Therefore, the correct answers are as given above

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Who to increase a labour productivity

Answers

Answer:

Explanation:

How To Increase Labor Productivity: 13 Practical Tips

Hire local.

Avoid expertise overlap.

Source quality components.

Tackle dust, noise & hazards.

Increase labor productivity by limiting overtime.

Beware staggered or alternating rosters.

Increase labor productivity by lifting morale.

Avoid late production rescheduling.

hope this helps :)

If the sinks are filled and unused what is the first step of proper dish rotation procedures

Answers

Is the first stage in good dish rotations practices cleaning, scrapping, or soaking objects if the sinks are full and unused.

What is dish?

The phrase dish refers to a specific tool. this tool, as well as the culinary variety. There was the fully prepared food waiting for service. The dishes are all the objects that have been used to cook, serve, and consume a meal.

There were filthy dishes in the sink. He'd cooked a meal and done the washing. The first stage was to justify the underused sink, and the way was to depict the cleaning, scraping, or soak goods.

As a result, the first stage in good dish rotations practices cleaning, scrapping, or soaking objects if the sinks are full and unused.

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Question 14
Explain the fiscal policy actions used to stabilize the
economy in times of inflation. What is this type of fiscal
policy called?

Answers

Contractionary fiscal policy, is the fiscal policy which actions used to stabilize the economy in times of inflation .

What is meant by Fiscal policy ?

The use of taxation and expenditure by the government to affect the economy is known as fiscal policy. Fiscal policy is often used by governments to encourage robust, long-term growth and to lower poverty. During the recent global economic crisis, when governments intervened to stabilize financial institutions, spur development, and lessen the impact of the crisis on vulnerable individuals, the function and goals of fiscal policy rose to prominence.

Monetary policy and fiscal policy are the two major instruments available to policymakers when they want to affect the economy. The money supply is influenced by changes in interest rates, bank reserve requirements, the buying and selling of government securities, and foreign exchange, all of which are indirectly targeted by central banks. Governments affect the economy via altering tax rates and kinds, spending amounts and types, and borrowing amounts and types.

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Which of these choices are add-on options for insurance policies? Select the two correct answers. (1 point)
O jewelry rider
O liability for auto insurance
Ocollision insurance
O fire for home
Olife insurance

Answers

The choices that are add ons for insurance policies are:

liability for auto insurance jewelry rider

What is meant by insurance policy?

The insurance firm (the insurer) and the person(s), company, or other entity being covered have a legal agreement called an insurance policy (the insured). By reading your policy, you can make sure that it addresses your needs and that both you and the insurance provider are aware of your obligations in the event of a loss.

By paying a small additional premium amount, policyholders can obtain the add-on covers, which provide greater insurance coverage. The policy coverage extension makes it easier for the automobile owner to handle a variety of problems. Roadside assistance, key replacement, return to invoice, and other services are some of the add-on covers.

A contract between you and the insurance provider known as auto insurance safeguards you from financial loss in the event of an accident or theft.

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A well-known t-shirt is produced in another country. Who should benefit from its profits?

Answers

The person who should benefit from the profits of the well-known t-shirt are both the company that produces it and the sellers in the country.

Who should benefit from sales profit?

The primary people who should benefit from the sale of a good or service are those who produce it. It does not matter if those people are in another country, but their efforts in production should be rewarded.

When a product such as a well-known t-shirt is produced in another country and then sold locally, those who sell the shirts locally should also benefit from the profit for their hard work in selling the shirts.

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what is the attitude of people aged 25-35 towards staycation

Answers

The attitude of people aged 25-35 towards staycation should be relaxed not really excited, because they  are familiar with the environment, also they will engage other home activities ,for example swimming, social gatherings, hiking etc. This would create room for them to be able rest due to the fact that aren't actively involved in much long distance travels.

What  is staycation?  staycation is when one chooses to stay home during time off  or leave  instead of travelling

An example of a staycation is visiting a natural resort or local testing as if you were a tourist in your own town. A vacation in which one does not travel away from home.

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Are there any products where humor is not appropriate? How does this translate in the online world? Give examples.

Answers

In some circumstances, when used in conjunction with certain goods and situations, comedy is deemed inappropriate. online is entertaining content, and as more businesses adopt this strategy.

Why Humor Works ?

The benefits of laughing have been noted on LinkedIn. Along with lowering blood pressure, it can also lessen stress and pain. Making people laugh also increases their propensity to think favorably of a company and purchase its goods.

One common strategy is to include something unexpected or inappropriate in a joke. It ought to surprise people in some way. Groucho Marx famously excelled at doing this in one line: “I’ve had a perfectly wonderful evening, but this wasn’t it” or “I wouldn’t want to belong to any club that would have me as a member.”

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Question 26
You purchase 50 shares of stock for $50 each. You receive dividends each year for
years of $2 per share. After 5 years, you sell the stock for $52.50 per share. What is
your return on investment in dollars?

Answers

Your return on investment in dollars, based on the amount of dividends received, and the selling price per share, is $625

How to find the return on investment?

Your return on investment in dollar terms can be found by the formula:

= Dividends received + Capital gains

The Dividends received per year from each share was:

= Number of shares x Dividends per share per year

= 50 shares x 2 per share

= $100

The Dividends received in five years of holding the shares are:

= Number of years x Dividends received in total per year

= 5 x 100

= $500

The capital gains per share are:

= Selling price per share - Buying price per share

= 52.50 - 50

= $2.50

The capital gains on all the shares is:

= Capital gain per share x Number of shares

= 2.50 x 50

= $125

The total return on investment in dollars is:

= 500 + 125

= $625

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Which of the five common reasons why new businesses fail did Morgan mention as a significant hurdle for Acre Landscaping that Craig and Amy haven't solutioned?

Multiple Choice

difficulty hiring and keeping good employees

government paperwork

inadequate management skills


aggressive competition


lack of financial support

Answers

Option C. One of the five common reasons why new businesses fail as mentioned by Morgan is: inadequate management skills.

What is a management skill?

Business management skills are qualities a person in charge of a business utilizes to assist the business and its employees in achieving goals and growing. These skills are typically learned through employment-related experience or academic study. Knowing about business management skills will help you hone your current set of abilities and perhaps pick up some fresh ones that will improve your management career.

Time is a valuable resource to a firm, and as a manager, you assist make sure workers fulfill deadlines and that teams do the most crucial tasks first. Business managers can decide which activities are more important and who to give work to by using planning and prioritization techniques. Managers know how to make the most of their staff to meet deadlines and maintain quality.

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How are private and public companies alike

Answers

They are both companies

Which is NOT an Internal Analysisa) Strengthsb) Weaknessesc) Threatsd) Resources

Answers

The answer resources

Taxation , what was the total amount spent on social security, unemployment and labor

Answers

The federal government collects taxes to finance various public services. As policymakers and citizens weigh key decisions about revenues and expenditures, it is important to examine what the government does with the money it collects.

Answer:

$1.28 trillion

Explanation:

sample

Which of the following statements would be
associated with the concepts of Capitalism?
A. Business owners have their own self interests in how their
company will make money.
B. Prices need to be fixed at a certain point because buyers and
sellers never come to an agreement.
C. The government should own all businesses to benefit the majority.
D. The government should control how private property will be
utilized for business.

Answers

A. Business owners have their own self interests in how their company will make money is associated with the concepts of capitalism.

What is capitalism?

A system of capitalism is an economy in which the means of production are privately owned and run for profit. Capital accumulation, competitive markets, the pricing system, private property, acknowledgment of property rights, voluntary trade, and wage labour are key aspects of capitalism. In a market economy, owners of wealth, property, or the capacity to move capital or the ability to produce are the ones who decide on investments and decisions, whereas the competition in the markets for goods and services is largely responsible for setting prices and determining how things are distributed.

In their assessments of capitalism, economists, historians, political economists, and sociologists have embraced numerous viewpoints and identified many kinds of it in daily life. These include state capitalism, welfare capitalism, anarcho-capitalism, and laissez-faire or free-market capitalism. Different versions of capitalism include varied levels of public ownership, open markets, barriers to uninhibited competition, and state-approved social policies. Varied forms of capitalism have different levels of market competition, the importance of intervention and regulation, and the extent of state ownership.

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Which of the following statements would be

associated with the concepts of Capitalism?

A. Business owners have their own self interests in how their

company will make money.

B. Prices need to be fixed at a certain point because buyers and

sellers never come to an agreement.

C. The government should own all businesses to benefit the majority.

D. The government should control how private property will be

utilized for business.

Assume a company reported the following results:

Sales $ 400,000
Variable expenses 260,000
Contribution margin 140,000
Fixed expenses 40,000
Net operating income $ 100,000
Average operating assets $ 775,000
The return on investment (ROI) is closest to:

Answers

The return on investment (ROI) is closest to Residual income = $ 4000

What is the investment?

Investment is the ceremonial of money to purchase an asset to attain an increase in value over a time period of time. Investment requires a sacrifice of some present quality, such as time, medium of exchange, or effort. In finance, the purpose of investing is to generate a return from the invested asset.

Margin = 25%

Turnover = 0.67 times

ROI = 16.67%

Residual income = $ 4000

Therefore, The return on investment (ROI) is closest to Residual income = $ 4000

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Scenario 2: What's Your Style?
During his first week on the job, John was eager to learn everything and to know everyone in
his department. He gave his opinion freely in discussions. He worked overtime and did
excellent work. Everyone seemed to like him. One man who had been with the company for a long
time said, "You can't help but like John, but you can tell that he'd leave this department in a second
if it meant getting closer to the top."


Erica started work on the same day as John. Unlike John, however, Erica kept more to herself. She
concentrated on her job and stayed in her area. She made an effort to learn from others and
listened to others in order to understand situations before jumping in with suggestions. One of her
co-workers said, "Erica is a really nice gal. I think she's going to make a strong employee. I like her."
Question: What do you think the future will be like for John? For Erica?

Answers

John was eager to learn everything and to know everyone in his department. He gave his opinion freely in discussions. He worked overtime and did excellent work, according to his strategy at work. John was enhanced his experience and skills to get promotion. He used to give opinion feely to get company's profit and he did his honest regarding meeting discussion honestly but without acquire required knowledge before suggesting his decision. He seemed like not strong employee in the future. That's, John strategy at work to do the work.

While, Erica kept more to herself. She concentrated on her job and stayed in her area. She made an effort to learn from others and listened to others in order to understand situations before jumping in with suggestions. Erica tired to get lesson from other, less mistake at her work, enhanced required skills to make her work effective according to her strategy at work planning. She was dedicated and not overwhelmed she would be became strong employee with the time. That's, Erica strategy at work to do the work.

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Suppose that the mean daily viewing time of television is 8.35 hours. Use a normal probability distribution with a standard deviation of 2.5 hours to answer the following questions about daily television viewing per household
(a) What is the probability that a household views television between 3 and 12 hours a day? (Round your answer to four decimal places.)
(b) How many hours of television viewing must a household have in order to be in the top 3% of all television viewing households? (Round your answer to two decimal places.)
hrs
(c) What is the probability that a household views television more than 5 hours a day? (Round your answer to four decimal places.)

Answers

a. The probability of viewing television between 3 and 12 hours is 0.9117

b. The number of hours that the household watches television is 13.05 hours.

c. The probability that a household views television more than 5 hours a day is 0.9099

How to solve for the probability

Given that ,

mean = u = 8.35

standard deviation = σ = 2.5

a) P(3 < x < 12) = P[(3 - 8.35)/ 2.5) < (x)  < (12 - 8.35) / 2.5) ]

= P(- 2.14 < z < 1.46)

= P(z < 1.46) - P(z < -2.14)

we have to use the z table to solve this further

0.9279 - (1 - 0.9838)

= 0.9279 - 0.0162

= 0.9117

The probability that a household would have to view the television between 3 and 12 hours everyday is 0.9117

2. The probability given = 3% = 0.03

1 - 0.03 = 0.97

P(Z < 1.88 ) = 0.97

z = 1.88

we have to use the z score formula

= z * u + sd

= 1.88 x 2.5 + 8.35

= 13.05 hours.

The number of television hours that a family would need to have in order to be in the top 3% would be 13.05 hours.

c. the probability that a family views television more than 5 hours a day

P(x > 5 ) = 1 - p( x< 5)

1 - p(5 - 8.35) / 2.5

= 1- P(z < -1.34)

= 1 - 0.0901

= 0.9099

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Why is it important to develop nail art design plans

Answers

Whether you are a seas-oned professional or just start-ing out, nail art can be a fun and creat-ive way to express yourself.

Accu-rately identifying the cond-ition of the nails and skin. Identifying any corrective work to suit the client's natu-ral nail shape and condition. Explaining your assess-ment of the client's nail and skin condition and any limit-ations to the nail art design .

Nail art design-ing is not just a way to accessorize your nails, but it also has a num-ber of benefits that you can en-joy. From mak-ing your nails look healthier and stronger to prevent-ing them from breaking.

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How can profits (net income) increase while revenue (sales) remains the same?

Answers

Answer: operating expenses are elevated for the quarter

Explanation: The net income of a company is the result of a number of calculations, beginning with revenue and encompassing all expenses and income streams for a given period. The sum of income less all expenses is the net income. This includes expenses for the manufacture of products, operating expenses, interest paid on loans or accrued from investments, additional income streams from subsidiary holdings or the sale of assets, depreciation and amortization of assets, taxes, and even one-time payments for unusual events. Net income, also called net profit or net earnings, is a concrete concept. The figure that most comprehensively reflects a business's profitability—and used in publicly traded companies to calculate their earnings per share (EPS)—represents the renowned bottom line of an income statement.

What words go into what boxes ?

Answers

The aggregate supply/demand model illustrates the macroeconomic interactions between total supply and total demand as well as the factors that influence either total supply or total demand for the economy.

What results from the supply and demand model?

A model that demonstrates how total supply and total demand interact at the macroeconomic level is the aggregate demand/aggregate supply model, which also explains how total supply and total demand are determined for the economy. In other words, the real GDP, aggregate supply is the total amount of output that businesses will generate and sell.

A supply and demand graph can be explained in what ways?

The supply curve moves right as the amount of the good that is available grows. The supply curve shifts left if the quantity falls. A line with a downward and rightward-pointing slope, representing the demand curve, is shown on a graph. The demand curve shifts to the right and slopes downward as the quantity demanded rises.

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1. What amount of revenue would be included in Adger’s flexible budget for May?

2. What amount of employee salaries and wages would be included in Adger’s flexible budget for May?

3. What amount of travel expenses would be included in Adger’s flexible budget for May?

4. What amount of other expenses would be included in Adger’s flexible budget for May?

5. What net operating income would appear in Adger’s flexible budget for May?

6. What is Adger’s revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

7. What is Adger’s employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

8. What is Adger’s travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

9. What is Adger’s other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

10. What amount of revenue would be included in Adger’s planning budget for May?

11. What amount of employee salaries and wages would be included in Adger’s planning budget for May?

12. What amount of travel expenses would be included in Adger’s planning budget for May?

13. What amount of other expenses would be included in Adger’s planning budget for May?

14. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
- Employee Salaries and Wages: ___________
- Travel Expenses: __________
- Other Expenses: __________

Answers

1. The amount of revenue included in Adger's flexible budget for May is $236,000.

2. The amount of employee salaries and wages included in Adger's flexible budget for May is $118,000.

3. The amount of travel expenses included in Adger's flexible budget for May is $23,200.

4. The amount of other expenses included in Adger's flexible budget for May is $45,000.

5. The net operating income that would appear in Adger's flexible budget for May is $49,800.

6. Adger's revenue variance for May is $11,000 F.

7. Adger's employee salaries and wages spending variance for May is $4,700  U.

8. Adger's travel expenses spending variance for May is $600  F.

9. Adger's other expenses spending variance for May is $2,500 F.

10. The amount of revenue included in Adger's planning budget for May is $205,500.

11. The amount of employee salaries and wages included in Adger's planning budget for May is $111,500.

12. The amount of travel expenses included in Adger's planning budget for May is $20,300.

13. The amount of other expenses included in Adger's planning budget for May is $45,000.

14. The activity variance Adger would report in May with respect to revenue is $30,500 U.

15. The activity variances Adger would report in May with respect to each expense are:

Employee Salaries and Wages: $6,500  U

Travel Expenses: $2,900  U

Other Expenses: $0 None.

What are the Planning and Flexible Budgets?

The planning budget is static and budgeted costs and revenues do not change with the level of production or activity.

The flexible budget is not static and the budget flexes with the activity level.

                  Fixed Per   Variable   Planning    Flexible      Actual      Activity

                    Month     Customer   Budget     Budget      Results   Variances

Number of customers                         35           40                      

Revenue                      $5,900  $205,500 $236,000 $216,500 $30,500 U

Salaries

& Wages    $66,000   $1,300    $111,500   $118,000  $116,200   $6,500  U

Travel Expenses            $580   $20,300    $23,200    $19,700   $2,900  U

Other

 Expenses $45,000                 $45,000    $45,000   $42,500   $0   None

Net operating income              $28,700     $49,800    $38,100  $21,100

                  Fixed Per   Variable   Planning    Flexible     Actual    Spending

                    Month     Customer   Budget     Budget     Results   Variances

Number of customers                         35           40                      

Revenue                      $5,900 $205,500 $236,000 $216,500  $11,000 F

Salaries

& Wages    $66,000   $1,300   $111,500   $118,000 $116,200   $4,700  U

Travel Expenses            $580   $20,300    $23,200   $19,700      $600  F

Other

 Expenses $45,000                 $45,000    $45,000   $42,500   $2,500 F

Net operating income              $28,700     $49,800    $38,100   $9,400 F

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The ManU Hotel is located close to Manchester United’s football stadium. It has a souvenir shop that sells two main product lines: hats and scarves in the Manchester United colours. The quarterly sales budget for the forthcoming year is as follows: Quarter Hats Scarves 1 1,200 600 2 800 400 3 600 300 4 1,400 700 It is expected that the shop will be holding 240 hats and 180 scarves in stock at the beginning of the year. The shop manger always likes to keep 20 per cent of the next quarter’s hat sales in stock and 30 per cent of the next quarter’s scarf sales. Sales of hats and scarves in the first quarter of the following year are expected to be 25 per cent higher than the first quarter of the forthcoming year. Required: Prepare the quarterly purchases budget for hats and scarves for the forthcoming year.

Answers

The quarterly purchases budget for Hats and Scarves for the forthcoming year for The ManU Hotel is as follows:

Quarterly Purchases Budget:

                                       Quarter 1      Quarter 2      Quarter 3      Quarter 4

                                       H          S       H          S       H          S       H          S

Sales                           1,200    600    800    400    600    300   1,400    700

Ending inventory          160     120     120       90    280     210     300    225

Units available           1,360    720    920     490    880     510   1,700    925

Beginning inventory    240    180     160      120     120      90     280     210

Purchases                  1,120    540    760      370    760    420   1,420     715

How are the purchase units determined?

Each quarter's purchase units are the difference between the expected available units for sale and the beginning inventory of the quarter.

We can use the following purchases or production formula: purchases = Sales units + Desired ending inventory - Beginning inventory.

The ending inventory is the product of the next quarter's sales units and the percentage expected to be kept in stock, as indicated in the data.

The last quarter's ending inventory considers the sales units for the first quarter of the following year, which are computed as follows.

                                     Hat         Scarves

Sales units for Q 1     1,200             600

Sales for Quarter 5   1,500             750

                        (1,200 x 1.25)    (600 x 1.25)

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