Opleiding: Bedrijfseconomie jaar three or more; periode on the lookout for
Naam: Kerensa Wong
Student nummer: 505390
Docent: Mevr. Wendy Ramautarsingh
1) Why are the reported results to get January therefore poor, specifically in light with the expected, common monthly earnings of $30, 000?
The income affirmation for January shows that the firm reviews a damage $8, 500. It is so poor if compared to the expected monthly earnings of $30, 000 ($ 360, 000/12). The main reason relates to the sales. If the budgeted sales intended for the year are $3, 000, 000, the expected product sales for each month are $250, 000 (3, 000, 000/12). From the circumstance, the actual sales for January are only $165, 000. The sales have been down, mostly due to the normal seasonal economic downturn. Since there exists a lower level of production than expected, there should be variances in the operating costs, mainly from your fixed factory overheadвЂ”volume, which might be unfavorable. During this time period, fixed costs also always been high which in turn meant that the whole allocation of the fixed costs was not spread over a large scale.
2) What additional info would be useful in analyzing the firm's January performance? How come?
In studying the business's January efficiency, there should be extra data.
Some of these elements include: modifications in our general degree of economic activity and the results that these adjustments have within the volume of sale. Various exterior forces may help the company analyze the January performance. Any changes in the labor rates may help the company evaluate the functionality. Changes in interior policies just like production costs by management could also be of some support.
Identifying the diversities and percent changes in expenses also might be a useful evaluation for January's performance. The company should consider utilizing a balanced scorecard as a way to line up their performance with their strategic goals.