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Managerial Accounting: Journal
Budgets and Employee Morale
Budgets play a critical role in management activities such as planning, controlling and motivating employees. Used effectively, budgets can help a company achieve its goals and create a productive work environment. In contrast, budgets can also create a hostile work environment. Watch this video about budgets and employee morale and then reflect upon your own work experiences. Explain how budgeting was incorporated to achieve the company's overall goals and objectives. Reflect on whether or not the budgets were effectively applied and whether your experience was positive or negative.
Refer to Simon Company's financial information in Exercises 17-7 and 17-9. Additional information about the company follows. To help evaluate the company's profitability, compute and interpret the following ratios for 2014 and 2013:
Compute and reconcile the sales volume variance for August. Indicate whether the variance is favorable or unfavorable.
The sale of stock and the sale of bonds are reported as financing activities. Are payments of dividends to shareholders and payments of interest to bondholders also reported as financing activities? Explain.
Could more vaccine be made available if the government or patients simply paid more money for it? What are the pluses and minuses of producing extra at an increased cost?
1.The following data refers to one month. Fill in the blanks.
Calculate the new weighted average cost of capital for Donegal, Inc. Calculate the EVA for Donegal, Inc., including the new products. Is the new investment a good idea?
Calculate the labor rate and labor efficiency variances for paralegals assisting with business in corporations.
Prepare McCrackens cash budget for the month of May. Use good form. McCracken expects to have $24,000 of cash on hand at the beginning of May.
Prepare an incremental analysis for the 4 years showing whether Shellhammer should keep the existing machine or buy the new machine and calculate the annual rate of return for the new machine.
Jessica Porter works in both the jewelry department and the hosiery department of a retail store.
There are different views of how quality can be managed. While a certain level of quality may be accepted, there is an argument to aim for the highest level of quality. Discuss these two views of "quality as cost" and "quality as value".
While income has increased in fiscal 2012, is it clear that the company's performance has improved?
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