Essay on Agm.Com Case Analysis

The main reason behind it is that the variance analysis of materials, labor, and overhead indicates the difference between original budget and actual sales/amount. It explains that the management should make changes in the budgets in order to diminish the chances of failure (Epstein & Jermakowicz, 2010). Moreover, the company should make changes in its all budgets like production budget, sales budget, manufacturing budget, selling budget and general & administrative. These changes would be helpful to reduce the difference between the actual and projected sales of the firm.

* Direct Labour variance: Unfavourable by $22.000. Again, we need to find out whether this is Price and/or efficiency driven. We know that according to the accountant information, the actual price is $16,4/unit while the Standard price is $16/unit. On the other hand, the Standard Quantity is 14.000 units while the actual Quantity is 246.000/16,4=15.000 units. Therefore:

$8 mill needed to be deducted from net income on the income statement. They should have followed (Following) with disclosure notes to describe why this error occurred and how it impacted the statement and accounts that it touched. For instance, the notes would describe the presence of the correction on the current period of beginning inventory, and retainED earnings.

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

Smiley, a buyer from Carrefour Fashions, entered the store of a rival firm, Boulevard Boutique. The reason for his visit was to find out about the latest lines that Boulevard was carrying. Once Smiley entered the store he was recognized by Maldini, the store manager of Boulevard, who immediately called the store detective and told him to keep an eye on Smiley. Maldini then called the police, notifying them that he had a shoplifter in the store. Smiley never tried to leave, believing that Rocco, the store detective, would not permit him to do so. Once the police took Smiley to the station he explained the situation and was released.

Some of the significant changes I found on the income sheet were revenue which decreased by 8 million dollars in 2015 compared to 2014. SG&A expenses increased by .9% for the year. How-ever gross profit decreased by .3% in 2015. Also net income for the year decreased by -2.5% per-cent.

Income and cost changes because of different levels of activity they carry out in the business. If the sales of the business increase so will the cost. This is because; more production will take place for more sales. Income and cost can be changed by fashion as well. The business will need to be up to date with the fashion. This change will increase the cost as well. But if the business can be up to date, it will bring a higher income as their products going to be popular.

United Way, formerly known as United Way of America, and also linked to United Way Worldwide).

Answer: In our judgement, PepsiCo did not have a moral obligation to divest itself of all its Burmese assets. The reason being:

Q: Was the decision to attract ultra HNI customers through a separate dedicated branch a good idea?

Increase in the profits above the actual budget can be attributed to 20% increase in sales in 2009. Although Jean’s profits were above the actual budget, French Division’s earnings were much lower than what it could have been, had they budgeted for the actual volume of sales that they ended up selling. We can partly attribute this decrease in earnings to the fact

To calculate the standard direct labor variances first we have to determine how much standard time should spend to produce the actual output. This can be calculated by multiplying the standard hours allowed for the actual standard rate. Second we need to determine how

Riggers Inc (“Riggers, “client, or “Company”) is audited by Stone LLC CPA firm (“Stone” or “auditor”). The Compa” ” ny builds and owns offshore drilling rigs. Riggers is a US-based corporation that recently expanded its operations into Brazil (the only foreign-based operations for Riggers). As a result of this expansion, the client has encountered two complex issues related to accounting for income taxes. During the 2012 year-end audit, the auditors must use professional judgment with regard to these two income tax accounting issues. The first issue relates to

January 2000, a major shortfall in profits relative to previous expectations. In June, the quarterly

significant drop in the revenues for third quarter of 1999. Annual revenues for 1999 were US$ 150