CASE 14-1 PET GROOM & CLEAN (PG&C) SUMMARY David Green is the manager of Store 88 of Pet Groom & Clean (PG&C). Bonus program of PG&C will reward store managers who improve their performance over that of the budget 20% or more. In 2010‚ David implemented some changes in price and promotion in order to cut costs and increase revenue. He decreased price on Tuesday‚ Wednesday‚ Thursday to get more customers and increase price on Friday‚ Saturday‚ and Monday to balance the promotion
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state‚ and they would otherwise have been used by the state police. i. Fixed cost ii. Controllable by the department director iii. Opportunity cost iv. Sunk cost v. Direct cost of the agency vi. Indirect cost of providing a particular service 2. Cost of live-trapping and moving beaver that were creating a nuisance in recreational lakes. i. Variable cost ii. Controllable by the department director iii. Out of pocket cost iv. Direct cost of the agency
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RISK IN VARIOUS FORMS FACE ALL KINDS OF BUSSINESS AND THEYCOME FROM VARIETY OF FACTORS. SOME FACTORS ARE CONTRLLABLE OTHERS ARE NOT CONTROLLABLE. USING EXAMPLES NAME AND DISCUSS TWO FACTORS FROM EACH CONTROLLABLE AND NON CONTROLLABLE FACTORS THAT COULD POSSSIBLY RESULT INTO RISK RISK Risk is often mapped to the probability of some event which is seen as undesirable. Usually the probability of that event and some assessment of its expected harm must be combined into a believable scenario (an outcome)
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SIKKIM MANIPAL UNIVERSITY - DDE Bachelor of Business Administration – BBA Semester 4 BBA 402 – Management Accounting – 4 Credits (Book Id – B1713) Model Question Paper Duration: 2 hours Total marks: 140 _____________________________________________________________________________ Part A (1 Mark questions) (50 * 1 = 50 marks) 1. ___________ sets the targets for each individual‚ reviews their working and points out their effectiveness and inefficiencies. A) Responsibility accounting B) Ratio Analysis
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defined as “the technique and process of ascertaining cost of a given thing”. According to CIMA it is defined as “the establishment of budgets‚ standard‚ costs and actual costs of operations‚ processes‚ activities or products and the analysis of variances‚ profitability or the social use of funds”. Cost Accounting: - Cost accounting is defined as “the process of accounting for cost from the point at which expense is incurred or committed to the establishment of its ultimate relationship with cost
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corrective actions or commend things that resulted in a favorable overall variance. This year‚ the division has a favorable operating income variance of $71‚700. Highlights: · Jim Peterson‚ president of the ice cream division‚ asked Frank‚ vice-president of the Sales and Marketing of the Ice Cream Division to make a short presentation at the next management meeting commenting on the major reasons for the favorable operating income variance of $71‚700 · Using the newly installed financial planning and control
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International Marketing Task Model Marketing Controllables a) The successful manager constructs a marketing programme designed for optimal adjustment to the uncertainty of the business climate. The inner circle in Figure 1.1 represents the area under the control of the marketing manager. b) The marketing manager blends price‚ product‚ promotion and channels-of distribution activities to capitalize on anticipated demand. c) The controllable elements can be altered in the long run and‚ usually
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manager’s incentive is based on the target profit is calculated by comparing the flexible budget with actual profit and budget actual profit. Flexible budget Actual Variance Revenue $108‚100 (23 x $10 x 470) $120‚555 $12‚455 F Variable Expense 54‚050 60‚277 6‚227 U (50% of revenues) Fixed expenses
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near the industrial area) Price would not be a big deal as long as competitors launch the shops in the same area and sell coffee for a cheaper price. 2. What are the critical success factors of The Cappuccino Express? Which of these are controllable by Vincent? Location – Locating near firms and offices makes customers buy coffee easy. No competition – Vincent’s idea was very innovative when he launched the shop‚ so his business did successful. However‚ since entry barrier into this market
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as good as a company’s capacity to implement it effectively. But most importantly‚ many employees see the new system as an end in itself‚ instead of a means to an end. The way standards are formulated play a crucial role in the results of these variances. For instance‚ management decided to use the sales forecasts based on what they made and incurred in the previous year. This would normally be the case‚ if the company had limited growth prospects. Reporting in aggregate may not allow a company to
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