Polytechnic University of the Philippines College of Accountancy and Finance DEPARTMENT OF BANKING AND FINANCE Sta. Mesa, Manila Chapter 4 Responsibility Centers: Revenue and Expense Center Submitted by: Group 7 Bianes, Vanessa Jean Dela Cruz, Moriah C. Icaranom, Maricar F. Ocampo, Jahleel M. Sabinay, Alexa Submitted to: Prof. Gina Tomimbang SUMMARY Responsibility Center – is an organization unit in a business headed by a manager. 4 kinds of Responsibility Center * Expense
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CAPITAL BUDGETING DECISION 1. Meaning Capital budgeting denotes situation where funds are invested immediately and returns are expected after a year. In growing orgnisation capital budgeting is more or less continuous process and it is carried out by top management. The role of any Finance Manager is to critically evaluate proposal, evaluation of alternative proposal and select best one. The following are the some of the cases where heavy capital investment may be necessary. A) Replacement
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Question 1: Assuming Bachand’s proposed system is accepted; compare the profitability of a franchised PK store to a corporate-owned store. Answer: In my point of view the proposed system of Bachand seems to be more profitable for PK in contrast to the current franchise system. I would like to quote following reasons in favor of my conception: Incentive system: In the franchise system franchisee was to be had a definite salary of $50000 but he had full liberty to draw as large salary as he
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what purposes does Body Glove use its budgeting system? Which purposes are emphasized? 2. Trace the steps in the development of the budget at Body Glove. What are the key events that relate to the timing of the steps in the budgeting process? 3. The case says that Body Glove never prepared a budget prior to fiscal year 1991. How can a company like Body Glove function effectively without a budget, or can it? 4. What changes to Body Glove’s budgeting and review process would you recommend
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Finance Ramzi Salloum April 30, 2012 Caledonia: Financial Analysis Taking on a new project or having an expansion done on an already existing facility takes time. There are several factors that need to come into play, centering mainly on capital-budgeting. As an analysts this is their main job; they need to be able to formulate the cash-flows statement for the project while figuring in such factors as risk, and depreciation, differential cash flows to determine if taking on the project is worth the
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of budgeting is that it provides definite objectives for evaluating performance. 3. A budget can be a means of communicating a company's objectives to external parties. 4. A budget can be used as a basis for evaluating performance. 5. A well-developed budget can operate and enforce itself. 6. The budget itself and the administration of the budget are the responsibility of the accounting department. 7. Effective budgeting requires
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Question 1 The purpose of Body Glove budgeting system is to minimize the expenses based on the estimated sales to maximize profit. The budgeting system help to draw a better picture on the how much to spend on the materials especially on neoprene usage by estimating cost on monthly basis. In this case the company production cost are different in two seasons as the cost of full fall suit averaged about $100 as for the spring line it was about $60. The $40 different will affect the cost estimation
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IMPACT OF BUDGETING ON WEALTH CREATION INTRODUCTION Budget, as we know is a formal business plan. It is a detailed plan showing how resources will be acquired and used over some specific time interval. Budgeting provide definite expectations that are the best framework for judging subsequent performance. Budgeting aids mangers in coordinating their efforts, so that the objective of the organization match the objective of its parts. Having plans and goals for your financial future is essential
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expenses at a given time. It is the amount allocated to certain asset or expense as an exchange for that asset or to the usage that led to that expense. According to an article from entrepreneurship.org, the business planning starts with budgets. Budgeting is not an afterthought. Your budget is a reflection of the goals and strategies you have for each area of business. A one-year budget planning document for the firm that is composed of all other budgets is called a master budget. Usually it is composed
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range of discounts rates – ranging from around 10% to 30%. However, the use of different discount rates for projects with varied risk in consistent with the theoretical basis of capital budgeting. The valuation of the Lal Pir project reveals the stark difference between the old and the new method of capital budgeting. Moreover, it is believed that the adjustments of sovereign spread and project-specific risk are consistent with the circumstances of AES. The amount of the adjustments may be disputed
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