(Answered) A company has produced the following performance report for

Finance

A company has produced the following performance report for April. The budget shown in the report was based on an original assumption that the total market size for April would be 40 million units. Since the performance report was produced, more accurate market size information has become available. The actual market size for April was lower than estimated at 37.5 million units.

Required:

(a) Produce a statement that reconciles budget profit to actual profit for April in as much detail as possible.

(b) Discuss the advantages and disadvantages of your statement with regard to responsibility accounting.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91929615
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Question - suppose that the number of ounces of soda put

Question - Suppose that the number of ounces of soda put into a soft-drink can is normally distributed with µ = 12.05 ounces and s = 0.03 ounce. a. Legally, a can must contain at least 12 ounces of soda. What fraction of ...

Canadian-based mining company el dorado gold ego suspended

Canadian-based mining company El Dorado Gold (EGO) suspended its dividend in March 2016 as a result of declining gold prices and delays in obtaining permits for its mines in Greece. Suppose you expect EGO to resume payin ...

A potential investor is seeking to invest 1000000 in a

A potential investor is seeking to invest $1,000,000 in a venture, which currently has 1,000,000 million shares held by its founders, and is targeting a 40% return five years from now. The venture is expected to produce ...

Abc company has projected sales of 1616 in january the

ABC Company has projected Sales of $1616 in January. The sales are expected to grow by 11% each month.ABC's collection schedule is as follows: ABC collects 28 percent of its sales in the month of sale and the remainder i ...

Assignment - valuing a leveraged firma firm is planning to

Assignment - Valuing a leveraged firm A firm is planning to take a project that if funded entirely with equity has net after tax cash flows as indicated in the table below. Year Cash flow 0 -15000000 1 2000000 2 2000000 ...

2 part questionpart 1 what do you think is the item that

2 part question: Part 1: What do you think is the item that accounts for the most cost in any hospital's budget? Can you outline ways to keep this cost under control? Part 2: Do think it is more difficult for a manager t ...

Question - analyze cash budgets inventory management and

Question - Analyze Cash Budgets, Inventory Management and Accounts Receivables Instructions - Assume the role of a manufacturing financial controller where you are making a presentation to the board of directors. Create ...

At the beginning of 2016 winston corporation issued 10

At the beginning of 2016, Winston Corporation issued 10% bonds with a face value of P600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P555,8 ...

Assume that real risk-free rate r 100 the maturity risk

Assume that real risk-free rate (r*) = 1.00%; the maturity risk premium is found as MRP = 0.20%×(t - 1), where t = years to maturity; the default risk premium for AT&T bonds is found as DRP = 0.07%×(t - 1); the liquidity ...

Your goal is to save 1000000 at retirement in 5 years you

Your goal is to save $1,000,000 at retirement in 5 years. You expect you can earn 12.50% over the next 5 years. How much money do you have to save on an annual basis to reach your goal?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert