...Labour turnover is the proportion of the employees leaving a business over a period of time- usually a year. In general labour turnover indicates how content the workforce is in a firm. If a company always have a labour turnover that could be a good sign but also can be seen as something bad as the new people don’t particuarly know how the company works and they need to settle in first, this settling in time is not productive time for the company and might loose money through this. The good thing about labour turnover is that new employees have better/new ideas for the company. The case study of labour turnover shows us that in 2005 the labour turnover rate was at 10% and in 2007 in 20.8% meaning that it increased double in 3 years, which is debatable if it’s a good thing or a bad thing. Absenteeism the proportion of employees not at work on a given day. A high rate of absenteeism tends to be an indicator of underlying problems either with the individuals involved or with the business itself. If a person is usally ill on a Monday or on a Friday more regugarly during the year that should be very suspicous for the company this might be just due to illness, hangover from a party at the weekend or on a Friday it might be because of a sporting event. As employers want the workers to work efectively for the company they have to turn up for their work, but if they are ill or don’t turn up the company still have to pay them their loan (even though some employers think this...
Words: 563 - Pages: 3
...What is "labour turnover"? Labour turnover refers to the movement of employees in and out of a business. However, the term is commonly used to refer only to ‘wastage’ or the number of employees leaving. High labour turnover causes problems for business. It is costly, lowers productivity and morale and tends to get worse if not dealt with. Measuring labour turnover The simplest measure involves calculating the number of leavers in a period (usually a year) as a percentage of the number employed during the same period. This is known as the "separation rate" or "crude wastage rate" and is calculated as follows: Number of leavers / average no employed x 100 For example, if a business has 150 leavers during the year and, on average, it employed 2,000 people during the year, the labour turnover figure would be 7.5% An alternative calculation of labour turnover is known as the "Stability Index" . This illustrates the extent to which the experienced workforce is being retained and is calculated as follows: Number of employees with one or more years’ service now / Number employed one year ago x 100 Labour turnover will vary between different groups of employees and measurement is more useful if broken down by department or section or according to such factors as length of service, age or occupation. Patterns of labour turnover The highest rate of labour turnover tends to be among those who have recently joined an business. Longer-serving employees are more likely to stay,...
Words: 1169 - Pages: 5
...|SOUTHERN CROSS UNIVERSITY | ASSIGNMENT COVER SHEET For use with online submission of assignments Please complete all of the following details and then make this sheet the first page of each file of your assignment – do not send it as a separate document. Your assignments must be submitted as either Word documents, text documents with .rtf extension or as .pdf documents. If you wish to submit in any other file format please discuss this with your lecturer well before the assignment submission date. |Student Name: |Samara James | |Student ID No.: |22078393 | |Unit Name: |Tourism and Hospitality Research and Analysis | |Unit Code: |MNG00415 | |Tutor’s name: |Martin Young | |Assignment No.: |2 | |Assignment Title: |Research Proposal and Literature Review ...
Words: 3439 - Pages: 14
... |and overstate of profit | | |(b) |Tariffs caused lower sales figure of locally |Lower sales figure than expected, and|Profit, inventory | | |produced product. |possibility of inventory overstated | | |(c) |Changing the shape and design of skis |Additional costs and misstatement |Profit, inventory | | | |within products valuation. | | |(d) |Budget are produced and reviewed by sales |Possibility of fraud when setting a |Direct labour | | |manager. |budget by sales manager and may set | | | | |lover budgeting target to earn | | | | |incentive....
Words: 433 - Pages: 2
...Ascertainment of Cost: Cost Accounting helps in the ascertainment of cost of each product, process, job, contract, activity etc. by using different methods of costing such as Job Costing and Process Costing. 2. Helps in Control of Cost: It helps in the control of material costs, labour costs and overheads by using different techniques of control such as Standard Costing and Budgetary Control. 3. Helps in Decision making: It helps the management in making various decisions such as – (a) Whether to make or buy a component (b) Whether to retain or replace an existing machine (c) Whether to process further or not (d) Whether to shut down or continue operations (e) Whether to accept orders below cost or not (f) Whether to expand or not (g) How much reduction in the selling price should be made in case of depression? 4. Helps in fixing Selling Prices: It helps the management in fixing selling prices of products or services by providing detailed cost information. 5. Helps in Inventory Control: It helps in inventory by using various techniques such as ABC analysis, Economic Order Quantity, Stock levels, Perpetual Inventory system and Continuous Stock Taking, Inventory Turnover Ratio etc. 6. Helps in Cost reduction: It helps in the introduction of cost reduction programme and finding out new and improved method to reduce costs. 7. Helps in measurements of Efficiency: It helps in measurements of efficiency of operations through establishment of standards...
Words: 541 - Pages: 3
...distribution centre has increased shipping costs and is harder to coordinate, especially with 10,000 products per year and re-stocked monthly. When a new store is opening, it can sit vacant until all the staff is properly trained. When they do marketing they only do it for bi-yearly sales, which can leave the stores empty as a result of getting rid of stock. Manufacturing While vertical integration is not a normally practiced with in the clothing retail business, Zara has set up an effective and extensive in house manufacturing. However, this model does have some root problems. Their 50% of in-house manufacturing requires large investment and intensive logistics and smooth operation to ensure proper distribution. There is also increase labour and R&D costs associated with vertical integration that other companies do not have. The increased yearly growth of 20-30% will put pressure on the integrated system and may not be able to adjust fast enough with the growing international sales. Pricing Pricing is put on the clothes right when it leaves the factory in spain and could not properly represent pricing in the country it is intended for. Exchange rates change daily and it needs to align with all costs associated with the manufacturing process. Individual stores have their hands tied as to specific regional pricing and cannot pick from a specific catalogue, they sell what they get from head office. Import duties differ from country to country and raises price when clothes are...
Words: 1198 - Pages: 5
...+ 295,000 = $595,000/2 = $297,500 $70,350/$297,500 = 23.65% c. Return on common stockholders equity $180,000 + $165,000 = $345,000 $345,000/2 = $172,500 $60,000/$172,500 = 34.78% d. Debt-equity ratio (12/31/08) $120,000/$180,000 = .67 e. Current ratio (12/31/08) $100,000/$105,000 = .95 f. Quick (acid-test) ratio (12/31/08) $27,000 + 36,000 = $63,000/$105,000 = .6 g. Accounts receivable turnover ratio (Assume that all sales are on credit) $36,000 + $37,000 = $73,000/2 = $36,500 $600,000/$36,500 = 15.4 h. Number of days sales in receivables 360/16.4 = 22 i. Inventory turnover ratio (Assure that all purchases are on credit) $35,000 + $42,000 = $77,000/2 = $38,500 $405,000/$38,500 = 10.52 j. Number of days sales in inventory 360/10.52 = 34 k. Number of days in cash operating cycle $405,000 + $35,000 - $42,000 = $398,000 $80,000 + 68,000 = $148,000/2 = $74,000 $398,000/$74,000 = 5.4 2. Overall financial health of SST Enterprises The smaller quick ratio is a problem for excess inventory. Inventory turnover is not a problem but compare it with the prior years. Payables time id longer than average and poses negative in operating cycle, no extra cash for financing. Need to know about the long term plans to evaluate the company’s financial...
Words: 292 - Pages: 2
...Butler Lumber Case Study I. Statement of Financial Problem Butler Lumber Company, a growing profitable business has exhausted its credit limit and the key issues facing it are: 1. Need for additional funds to continue the growth 2. Need to consolidate debt 3. Need to improve cash flexibility. In this case study I will be discussing following problem: Why has Butler Lumber been profitable in the increasing volume of sales but at the same time it is experiencing cash difficulties in 1988 – 1990? This is a historical problem and my calculations and assumptions are based on income statement and balance sheet for 1988 – 1990. II. General Framework for Financial Analyses There are different financial ratios and questions they answer: • Liquidity ratio – current ratio: Will Butler Lumber be able to pay off his debts as they come due? Satisfactory liquidity ratio is necessary if Butler Lumber is to continue its operations. • Asset management ratio: Does Butler Lumber have the appropriate amount of assets versus sales? How effectively is Butler Lumber managing its assets? • Debt management ration: Does Butler Lumber have the right mix of debt and equity? • Profitability Ratios: Are sales high enough? Do sales exceed the unit cost? It is necessary to calculate different types of financial ratios to examine different aspects of Butler Lumber’s operations. Key accounts for sources of funds for Butler...
Words: 1432 - Pages: 6
...The greatest environmental threats for A&F Abercrombie & Fitch has been known for not being very diverse. They were striving for a certain look and style. There clothes mainly consisted of young white male and females with nice bodies, beautiful hair and shapes that fit their tiny clothes. Entering in A&F store, as you look on the walls, you would notice that the models all have the same look. A&F was known for hiring associates that also fit that look. A&F was also known for not hiring minorities and if they were hired it would be for stocking or closing up store. A&F was known for this practice and really didn’t mind the lost of not having the minority business, which prompt lawsuits to the company and drew attention to them, but this did not stop A&F. A&F also prevented to the sales of potential clients by racial profiling with the expensive of clothing. The greatest opportunities available in the marketplace for A&F to pursue A&F specializes in casual wear in marketing the younger generation in buying their products. They should pursue the older generation in finding out exactly what they are looking for and try to meet that need. The company could be more tolerant to the older generation. A&F will understand the need of the younger generation but to get an handle on the need of the older generation from the ages of 35-50 are not old but to maintain the in style look for that generation. Hitt,Ireland, Hoskisson states: Demographics...
Words: 904 - Pages: 4
...a.) Ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms in the same industry. Managers use ratio analysis to identify situations needing attention; potential leaders use financial analysis to determine whether a company is creditworthy; and stockholders use ratio analysis to help predict future earnings, dividends, and free cash flow. b.) The 2011 current ratio is calculated by using the following formula: current assets/current liabilities= 2,680,112/1,039,800= 2.58:1 The 2011 quick ratio is calculated by using the following formula: current assets-inventories/current liabilities=2,680,112-1,716,480/1,039,800=.93:1 The higher the current ratio the better the company’s liquidity because it provides insight about a firm's ability to meet its short-term financial obligations; therefore after calculating the 2009, 2010, and projected 2011 current ratio using the current assets/current liabilities formula we find the following ratios: 2009: 1,124,000/481,600=2.33:1 2010: 1,946,802/1,328,960=1.46:1 projected 2011: 2,680,112/1,039,800=2.58:1 The projected 2011 balance sheet leads us to believe that the year 2011 will have more liquidity than in the previous 2 years. Ratios are very useful to managers, bankers and stockholders for various reasons...
Words: 592 - Pages: 3
...Business Analysis: Haefren Baum “Show Me The Money” Christy Lopez Johnathan Putmon Harikrishna Patel Nikhil Dargani Darrell Springer Rayhaan Malik Financial Analysis and Introduction to Loan Structuring Professor Hadiye Aslan February 16, 2016 Name of the Business Haefren Baun Nature of the Business Haefren Baun is a retailer of furniture located in Germany. They have been purchasing furniture from the furniture manufacturing company, Wiegandt, which manufactures high-quality furniture. The retailer was once a partnership that was established in 1965, but later became incorporated in 1970. They have been purchasing furniture from Wiegandt since 1968. The company began operations in downtown Cologne but later expanded to three additional outlets in Rhineland. Marketing Analysis Haefren Baun’s product is high-quality furniture, where the company is focused on the German market. Business was booming until 1993, which then turned to a bust due to consumer confidence slipping. This leads to a decrease in demand for furniture, causing the demand cycle to experience a downward trend. The decrease in demand can be derived from the fact that the economy had declined by 1.2%. By the end of 1993, the sales figures were DM 18,647. The sales had decreased by approximately 19% from 1993 to 1994. Sales were on a steep decline and to entice customers, Haefren Baun had to lower their prices on the furniture. The reasoning behind this was also to maintain the sales volume. In...
Words: 901 - Pages: 4
...ACCT 313 Intermediate Accounting I Financial Statement Application #2 Inventories The purpose of this assignment is to help you understand how the inventories concepts discussed in Chapters 8 and 9 of the textbook apply in a real-world company. To complete this assignment, you will need to use Starbucks’ 2013 Annual Report (available on Blackboard). Prepare type-written responses to the following questions. Include appropriate references to the Annual Report. The assignment will be graded on correctness and presentation. Hand-written work will not be accepted and late assignments will have five points automatically deducted. 1. What types of inventories does Starbucks have? Coffee (Unroasted and Roasted), other merchandise (serveware and tea) held for sale, breakfast food, packaging and other supplies Pg69, Notes 5 Inventories 2. of the end of fiscal 2013, what is the balance sheet carrying value (book value) of Starbucks’ inventories? $1,111.2 Pg53, “Starbucks Corporation Consolidated Balance sheet” 3. Is this the same amount that Starbucks paid to its suppliers to purchase these inventories? Why or why not? Pg15, “Product supply” No. There were $882 million, comprised of $588 million under fixed-price contracts and an estimated $294 million under price-to-be-fixed contracts.The reason that there will be difference between the price that Starbucks paid to its suppliers and the value shows on balance sheet is $294 million price-to-be-fixed contract...
Words: 668 - Pages: 3
...University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. |Term |Definition |Resource you used | |Time value of money |The idea that money available at the present time is worth more |Time value of money TVM. (2014). Retrieved | | |than the same amount in the future due to its potential earning |from | | |capacity. This core principle of finance holds that, provided |http://www.investopedia.com/terms/t/timevalueo| | |money can earn interest, any amount of money is worth more the |fmoney.asp | | |sooner it is received. | | |Efficient market |An efficient market is a market in which all the available |Titman, S., Keown, A., & Martin, J. (2014). | | |information is fully incorporated |getting started principals of finance. | | |into securities prices, and the returns investors will earn on |Finanical Managment, principles and | | |their investments cannot be predicted...
Words: 1017 - Pages: 5
...The Panasonic Corporation having a shorter operating cycle because the inventory and receivable turnover ratio are higher. This kind of result is better for the business because the flow the capital is fast. The receivables turnover ratio, 2014 Panasonic had $7,736,541 in net credit sales. The ending balance for 2013 $882,575 and that on December 31 it had $933,975 accounts receivable. With this information, one could calculate the receivables turnover ratio for 2014 in the following way: $7,736,541 / [($882,575 + $933,975) / 2] = $7,736,541 / ($1,816,550 / 2) = $7,736,541 / $908,275 = 8.52 The receivables turnover ratio is higher it imply a variety of things about a company. It show that a company operates on a cash basis, where the collection process it takes only for 42 days for them to use the money again. It indicate that the company’s collection of accounts receivable is efficient, and the Panasonic Corporation has a high proportion of quality customers that pay off their debts quickly. This high ratio indicates that the company has a conservative policy regarding its extension of credit. This is a good thing, as this filters out customers who may be more likely to take a long time in paying their debts. The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by comparing cost of goods sold with average inventory for a period. This measures how many times average inventory is "turned" or sold during a period. In other words, it...
Words: 503 - Pages: 3
...OPERATION MANAGEMENT Group Assignment Case Study – Process Analysis in Carrefour PROCESS ANALYSIS IN CARREFOUR GROUP INTRODUCTION - History of Carrefour First in Europe, Carrefour is the 2nd retailer in the world. With a presence in thirty-two countries, it makes half its sales outside France. This makes it the most international of all food retailers. The Group is concentrated on three continents: Europe (13 countries), Latin America (4 countries) and Asia (8 countries), a field of expansion to which one might add Africa, the Caribbean and the Middle East (7 countries). The Group started this world-wide expansion more than 40 years ago, from which it has gained considerable experience. With the strength of this expertise, Carrefour pursues a growth strategy that is increasingly based on its international business. Thus, in 2004, 80% of the new points of sale were created outside France. Growth has been achieved, with an increase of sales outside France of 8.3% at constant Exchange rates in 2004. The scope of Carrefour focuses on four main grocery store formats which are hypermarket, supermarket, discount and convenient stores. Operations range from supermarkets stores and a variety of other outlets to convenience. But what Carrefour is known for above all else is the hypermarket. A hypermarket is, essentially, a super-sized supermarket that typically stocks some 70,000 items and has a sales floor as big as 20,000 square meters or approximately 215,000 square...
Words: 2881 - Pages: 12
