...Contribution margin analysis is another tool managers use for decision making, expenses are categorized as either fixed or variable. The variable costs are deducted from sales to obtain the contribution margin. Fixed costs are then subtracted from contribution margin to obtain net income. This information helps the manager to (1) decide whether to drop or push a product line, (2) evaluate alternatives arising from production, special advertising, and so on, (3) decide on pricing strategy and products or services to emphasize, and (4) appraise performance. For example, contribution analysis involves how to formulate a bid price on a contract, and whether to accept an order even if it is below the normal selling price. Gross margin, found in the conventional income statement, which is sales minus the cost of goods sold, is not useful for this type of decision analysis. Contribution analysis recognises that it takes time to achieve an impact and does not seek to prove an impact before it could be achieved. It provides information on whether a program is likely to achieve an impact. In terms of accountability for outcomes, contribution analysis asks if everything possible has been done to effect the achievement of the intended results and what lessons have been learnt (Mayne, 1999) Break Even Analysis According to Kerin & Petersen 2010, one of the simplest applications of contribution analysis is the break even analysis. A breakeven analysis is used to determine how much...
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...55-1 This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used in distinguishing contributions from exchange transactions, including membership dues and agency transactions . > Implementation Guidance 55-2 The accounting and reporting of grants, membership dues, and sponsorships is determined by the underlying substance of the transaction.Those terms are broadly used to refer not only to contributions but also to assets transferred in exchange transactions.A grant, sponsorship, or membership may be entirely a contribution, entirely an exchange, or a combination of the two; therefore, care must be taken in evaluating each grant, sponsorship, or membership agreement.In addition, those resource transfers may also have the characteristics of agency transactions. 55-2A The implementation guidance is organized as follows: a. Distinguishing contributions from exchange transactions (see paragraphs 958-605-55-3 through 55-8 : ) b. Distinguishing the contribution portion of membership dues (see paragraphs 958-605-55-9 through 55-12 : ) c. Distinguishing contributions from agency transactions (see paragraph 958-605-55-13 : ). > > Distinguishing Contributions from Exchange Transactions 55-3 Some transfers of assets that are exchange transactions may appear to be contributions if the services or other assets given in exchange are perceived to be a sacrifice of little value and the exchanges are compatible...
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...Marginal Risk Contributions Overview This chapter focuses on marginal risk contributions, to portfolio loss volatility or to portfolio capital, and compares them with absolute risk contributions. Marginal risk contributions serve essentially for risk-based pricing with an ‘ex ante’ view of risk decisions, while absolute risk contributions are the basis for the capital allocation system. Marginal risk contributions to capital are the correct references for risk-based pricing. Pricing based on marginal risk contributions charges to customers a mark-up equal to the risk contribution times the target return on capital. The mark-up guarantees that the return on capital for the entire portfolio will remain in line with the target return when adding new facilities. However, prices based on marginal risk contributions are lower than prices based on absolute risk contributions. This is a paradox, since the absolute risk contributions are the ones that sum to capital. In fact the new facility diversifies the risk of those existing facilities prior to the entrance of any new one. Therefore, adding a new facility results in a decline in all absolute risk contributions of existing facilities. Because of this decline, the overall return of the portfolio remains on target. However, the ex-ante measure of risk-based performance, on the marginal contribution and the ex-post measure, on the absolute contribution, differ for the same facility. The Marginal Risk Contributions The...
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...What is the difference between gross margin and contribution margin? Gross Margin is the Gross Profit as a percentage of Net Sales. The calculation of the Gross Profit is: Sales minus Cost of Goods Sold. The Cost of Goods Sold consists of the fixed and variable product costs, but it excludes all of the selling and administrative expenses. Contribution Margin is Net Sales minus the variable product costs and the variable period expenses. The Contribution Margin Ratio is the Contribution Margin as a percentage of Net Sales. Let's illustrate the difference between gross margin and contribution margin with the following information: company had Net Sales of $600,000 during the past year. Its inventory of goods was the same quantity at the beginning and at the end of year. Its Cost of Goods Sold consisted of $120,000 of variable costs and $200,000 of fixed costs. Its selling and administrative expenses were $40,000 of variable and $150,000 of fixed expenses. The company's Gross Margin is: Net Sales of $600,000 minus its Cost of Goods Sold of $320,000 ($120,000 + $200,000) for a Gross Profit of $280,000 ($600,000 - $320,000). The Gross Margin or Gross Profit Percentage is the Gross Profit of $280,000 divided by $600,000, or 46.7%. The company's Contribution Margin is: Net Sales of $600,000 minus the variable product costs of $120,000 and the variable expenses of $40,000 for a Contribution Margin of $440,000. The Contribution Margin Ratio is 73.3% ($440,000 divided by $600...
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...Recognizing Employee Contributions Power Point Presentation Human Resources Management 500 Atina Sims June 16, 2014 Dr. Jo-Rene Queensberry Introduction Human capital is one the factors that enhances growth in the corporate world. The human capital consists of employees working in various departments within the organization with the aim of attaining the set goals of the firm (Brun & Dugas, 2008). In essence, the human resources assist in bring the other factors of production together, and use their knowledge to ensure that the right quantity of all other factors are used appropriately, owing to the scarce resources, which firms must share with competitors (Bauer & Erdogan, 2009). In this regard, firms must ensure that they appreciate their employees’ efforts in attaining the set goals of the organization. This presentation, thus; seeks to elaborate on the process of recognizing employee contribution that firms can utilize. Methods to Determine Incentive Pay Incentive is the one of the ways through which companies motivate their employees in order to increase productivity. There are diverse incentives that companies can employ, although the most commonly used is the pay for performance incentive. A research conducted in a number of firms in the United States of America established that 86% of employees participating in the survey increased their productivity following provision of monetary incentive. the remaining 14%...
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...ACCT 625 Week 4 Homework Click Link Below To Buy: http://hwaid.com/shop/acct-625-week-4-homework/ Question 1. The following information relates to Hudson City for its fiscal year ended December 31, 2014. • On January 31, 2014, the city purchased as an investment for its debt service fund a fifteen-year, 6 percent,$1 million bond for $998,000. During the year it received $30,000ininterest.Atyear-endthefairvalueofthebond was $999,500. • On December 31, 2013, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city-owned art museum. During 2014, the city collected $600,000 and received the matching money from the Foundation. In January and February 2015 it collected an additional $2,400,000 and also received the matching money. • During the year the city imposed license fees on street vendors. All vendors were required to purchase the licenses by September 30, 2014. The licenses cover the one-year period from October 1, 2014, through September 30, 2015. During 2014 the city collected $240,000 in license fees. • The city sold a fire truck for $40,000 that it had acquired five years earlier for $250,000. At the time of sale the city had charged $225,000 in depreciation. • The city received a grant of $2 million to partially reimburse costs of training police officers. During the year the city incurred $1,500...
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...Correct Answers: | 1 | Total Incorrect Answers: | 4 | Your Mark (total correct percentage): 20% | | 1 | Once the Feltham's discharge their mortgage, what tax planning opportunity would be MOST APPROPRIATE during the years that immediately follow? | Incorrect | The correct answer: Mark maximizes contributions to a spousal RRSP for Sarah; Sarah maximizes contributions to her RRSP Your answer: Mark maximizes contributions to his TFSA only; Sarah maximizes contributions to her RRSP | 2 | Based on an analysis of Sarah and Mark's assets, from what tax advantages does the couple currently benefit? | Correct | The correct answer: deferral and avoidance only Your answer: deferral and avoidance only | 3 | If Mark exercises his 12,000 stock options at $39 and sells the underlying shares at the same time, what will his after-tax proceeds be? | Incorrect | The correct answer: $27,720 Your answer: $252,720 | 4 | In reviewing Sarah's method of remuneration from Cognitive Solutions, what statement is MOST APPROPRIATE? | Incorrect | The correct answer: Sarah should continue with her current form of remuneration as doing so creates RRSP contribution room for her. Your answer: Sarah should forego a salary and receive dividends from the company. She should also pay dividends to Mark and Gavin to take advantage of income splitting opportunities. | 5 | What tax planning strategies would be of LEAST BENEFIT to Sarah and/or Cognitive Solutions either now or...
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...Individual Portion Your individual task will be to contribute a section of the product proposal and pro-forma statement for the new product idea. Make sure your portion is 2 pages. In addition to sending it to a designated person who will consolidate all of the contributions into a proposal, this paper will be submitted to your instructor. Individually, each student will create 3–4 slides (with 200–250 word speaker notes per slide) covering their portion of the proposal in slide presentation format to be pitched to investors.Make sure to provide APA citation and references for both portions of this assignment. Please add your file. Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric. Part 1: Group Proposal Using the Small Group Discussion Board, the group will come to a consensus on a single product idea and develop a proposal of 8–10 pages addressing this new product, the state of its industry, and details of its market. The group will also come to a consensus on the business model approach: intrapreneurial or entrepreneurial. Details about the character of the company, its contributors, of why this approach was chosen for this project should be included in the proposal. Provide information on the product selected, its market, and its industry. The proposal must also provide new information on the chosen product's main competitors, how their product is different the competition, and detail the demographics...
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...organized and planned out this week’s assignment well. | Communication with members and professor | 5 | Communication was open and clear. | Guidance provided to team members | 5 | Guidance was given and always responded back in a well timely matter. | Timely feedback and posting of final team product | 5 | Feedback was open and given. As well as tips and advice. | | B. If you are the Team Leader, comment in A. above and on the following: | What did you do in order to motivate your team’s contribution? | What would you try again? What would you never try again? | What did you do in order to motivate your team’s contribution? | | C. Write a short comment that describes your team members and team work during this week. Make reflective and substantial comments, indicating outstanding and non-participating member of your team. | Who were the team members? | | Who contributed the most, and how? | | Which were the two best contributions from the team members, and why? | | How did you do in teamwork this week? | | | D. General comments and recommendations for all team members and leader...
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...Implement a matrix structure. Similar in some ways to the divisional structure described in action one, a matrix structure can benefit from the functional divisions formed in the divisional structure but also supplement these divisions with divisions based on products as well. Employees are grouped by both function and product in a matrix and frequently teams of employees will be assigned to a project to accomplish a specific goal. This type of structure can take advantage of the best parts of divisional and team based structures. If Appex were to consider a matrix format I would recommend a balanced/functional matrix. This form of a matrix structure is one in which a project managers are assigned to oversee projects and these project managers must share power with the functional managers who are the normal chain of command. One of the disadvantages of this arrangement is the division of power between the managers but if Appex’s managers could overcome the difficulty inherent in such a power sharing scheme then this could be a beneficial way to structure the company. 4) A classical hierarchy. I believe that this time-tested structure is what Appex needs as it has grown too large and complex to operate efficiently in any of the structures described above. Although some consider this to be an impersonal form which would not allow for the employees of Appex to operate in the unstructured way that they did at the beginning, the simple fact of the matter...
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...and industry culture. Map your contributions with what the company is looking for. Customise your résumé when required. Are they looking for a strong technical expert or someone with strong people skills? Talk to current employees and read up about the company. For each company you have worked with, every designation held and every academic institution attended, the executive wants to see three things: a. What goes into the résumé must be relevant to the job you have applied for. Mention your contributions, projects undertaken and the extracurricular activities in school or college, for example, ‘Achieved 100% target all through.’ b. Describe the constraints and the complexity involved in the project or in your contribution (example: Achieved 100% target or raised sales by 10% despite the downturn during which client company cut purchases by 20% and in the presence of leading competitors). c. The above details not only convey your potential to the interviewer, but also help focus interview questions on how you made it happen. Make the subheads speak for themselves so that the executive glancing rapidly through it does not miss them. Avoid monotonous subheads. Make your résumé speak the industry language with no spelling or grammar mistakes. Don’t use fancy fonts and boxes. The résumé must be clear and precise. Follow the industry pattern in design. Don’t use bold fonts too often. Start with the latest and biggest contribution within each profile. [The...
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...Paragraph 1: (100 words) change grammar later One of the best written works by Oscar Wilde, an Irish playwright, poet and author of many short stories as well as novels, is The Happy Prince published in 1988 as a series of children story. Although aimed for kids, the story addressed issue concerned in adult society which deems it to be worthy for discussion. This essay shall provide the background summary of the story, literary analysis regarding the symbol of statue of the happy prince, and thematic analysis relating to the contribution the price offered his people and a reflection of lesson learnt from the story. Paragraph 2: Summary (100 words) change grammar later In the story, when the happy prince was alive, he lived in a palace where sorrow was not allowed to enter. However, when he died, he saw all the misery of the city on a tall column as a statue. A swallow who came from afar stays with the statue of the happy prince and helped the poor with the ruby, the sapphires and the gold covering of the happy prince upon the happy prince’s request. At the end, the swallow died frost. The heart that was made of leaden of the happy prince also broke. Paragraph 3: 150 words. Change grammar later The statue of the Happy Prince in the story symbolized that outward beauty was nothing; it was just a show. The real beauty was the love and sacrifice. The Happy Prince had a lead heart, but this heart was full of sympathies for the poor and the needy. He sacrificed his eyes and...
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...Merton Trucks Case Note Abstract We discuss Merton Trucks [Dhe90a] as a case to introduce linear programming in the MBA program. This case adapted from Sherman Motor Company case, was used to introduce Linear Programming formulations as well as duality. Refer to the teaching note [Dhe90b]. Our approach differs from the approach suggested by Dhebar [Dhe90b]. First, our audience consists pre-dominantly of engineers with not too much work experience. As a result, handling math and algebra is relatively easy. Explaining the algebraic formulation, graphical approach and using the Excel solver do not consume that much time. Second, because this case is used during the first week of the MBA program, students are still unfamiliar with the case methodology and we spend significant time in understanding case facts. The circular logic used in allocating fixed costs based on the product mix that in turn is used in deciding the product mix takes some time to understand. Third, because of the participant background, they have difficulty in translating the model to the specific business situation and interpreting the trade-offs involved in various what-if analyses that are prompted by the case questions. We return to the case when we teach duality. After explaining duality, we analyze the case to show how some of the questions and what-if analyses can be simplified using duality. This note is based on our experiences with teaching three large batches of students in our MBA programs. 1 1 Without...
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...made a lot of contribution not only to the place but also to the people.In the first part of his exile, he lived in a commandant’s house but after winning the second prizein the Manila Lottery and also from his savings being a merchant and farmer, he bought a land in Talisay.In this place, he built three houses made of bamboo, wood and also nipa with different shapes. The firsthouse served as his home, the second house is for his students and lastly, the third house is for hischickens.Even though Rizal is in Dapitan, he continued to send a letter to Ferdinand Blumentritt thatdescribed his life in Dapitan. The letter says that Rizal is waking up early in the morning to feed hischickens and cook for their breakfast. After eating their breakfast, Rizal treats those patients who cometo his house and also those in towns. In the afternoon, after being a doctor in the morning, hetransformed into teacher to teach the young boys in their town. These young boys do not have anytuition fee, but there is one condition, they have to work, especially in the farm, together with Rizal. AndRizal ended the day in reading and writing.After 4 years, he left D apitan but Rizal’s presence remains there because he has a lot of contribution and also some projects that until now are running. One of his contributions is the goodwaterworks system he constructed in the province. As you can remember Rizal studied surveying whenhe was in Ateneo Municipal. Rizal also has a lot of contributions to the agricultural...
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...B___________________ Date _____4/26/2015___________________ Course Number HCS/350 Introduction to Healthcare Communication Instructor: _________Tracey Andrews_______________ In the space below, list the names of each member of your learning ream, including yourself. Then use the following scale to rate how effectively each member of the team, including yourself, contributed to the project assigned in this course. Using the following scale, insert a number between one and five beside each name. 1-No Contribution 2-Slight Contribution 3-Moderate Contribution 4-Significant Contribution 5-Outstanding Contribution In considering the contributions made by each member of your team, here are some factors you might want to consider • Helped establish positive learning environment • Built on others’ comments in a positive way • Made contributions that helped the team accomplish its goals • Maintained an atmosphere in which each team member could contribute • Demonstrated tact and respect when communicating with others • Exhibited enthusiasm and interest in topic • Used proper grammar, spelling and capitalization • Took an active and equal role in contributing to team assignments • Actively participated in all learning team meetings/discussions • Submitted thorough and high quality work • Submitted team deliverables on time as agreed upon |Name ...
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