Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: The director of marketing for Mobile Computer Co., Sheri Keller had the following discussion with the company controller Isaiah Johnson, on July 26 of the current year:

Sheri: Isaiah, it looks like I'm going to spend much less than indicated on my July budget.

Isaiah: I'm glad to hear it.

Sheri: Well, I am not so sure it's good news I am concerned that the president will see that I'm under budget & reduce my budget in the future. The only reason that l look good is that we've delayed an adverting campaign once the campaign hits in September, I'm sure my actual expenditures will go up. You see, we are also having our sales convention in September. Having the adverting campaign & the convention at the same time is going to kill my September numbers.

Isaiah: I don't think that's anything to worry about We all expect some variation on actual spending month to month. What’s really important is staying with the budgeted targets for the year. Does that look as if it’s going to be a problem?

Sheri: I don't think so, but just the same, I’d like to be on the safe side

Isaiah: What do you mean?

Sheri: Well this is what I'd like to do. I want to pay the convention-related costs in advance this month. I'll pay the hotel for room & convention space & purchase the airline tickets in advance. In this way I can charge all these expenditures to July's budget. This would cause my actual expenses to come close to budget for July. Moreover when the big advertising campaign hits in September, I won't have to worry about expenditures for the convention on my September budget as well. The convention costs will already be paid. Thus, my September expenses should be pretty close to budget.

Isaiah: I can't tell you when to make your convention purchases but I'm not too sure that it should be expensed on July's budget.

Sheri: What is the problem? It looks like "no harm, no foul" to me. I can't see that there's anything wrong with this-it's just smart management.

How should Isaiah Johnson respond to Sheri: Keller's request to expense the advanced payments for convention related loss against July's budget?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916546

Have any Question? 


Related Questions in Basic Finance

6 cs of credit as defined by the author look at each one

6 C's of credit, as defined by the author. Look at each one and evaluate its merit. Pick two of the six and explain why you think it is vital that an underwriter would use this and how. Finally, pick which of the six you ...

1 describe four types of invalidity that can be found in

1. Describe four types of invalidity that can be found in experimental research designs. 2. What are extraneous and confounding variables? Which type of variable is most dangerous to the statistical conclusion validity a ...

A congresswoman introduces a bill to outlaw credit

A Congresswoman introduces a bill to outlaw credit rationing by banks. The bill would require that every applicant be granted a loan, no matter how high the risk that the applicant would not pay back the loan. She defend ...

Suppose that a bond has a yield to call ytc equal to 65

Suppose that a bond has a yield to call (YTC) equal to 6.5 percent and a yield to maturity (YTM) equal to 6.3 percent. Explain the meanings of these numbers to bond investors.

1 how do scientists get ideas for research what are the

1. How do scientists get ideas for research? What are the advantages and potential disadvantages of each method for doing so? 2. What guidelines do scientists use to conduct an effective literature search? What specific ...

You are the manager of a financially distressed corporation

You are the manager of a financially distressed corporation that has $5 million in loans, which come due in 30 days. Your firm has $4 million cash on hand. Suppose that a longtime supplier of materials to your firm is pl ...

If the calculated value of f is found to be significant for

If the calculated value of F is found to be significant for the main effect of an independent variable with more than two levels, what tests does the researcher then conduct? Why are such tests not necessary if the indep ...

Diversification- videosgo to wwwcnbccom and explore the

DIVERSIFICATION- VIDEOS Go to www.cnbc.com and explore the video tab using the key term diversification. As you learned in this unit, there are various sources of information. 1) Watch at least three videos you find, 2) ...

1 what is the advantage of using multiple measures for a

1. What is the advantage of using multiple measures for a single variable? What is the disadvantage? 2. Briefly explain how a ceiling effect (or floor effect) can affect the outcome of a research study.

1 an anonymous billionaire investor was quoted in the wall

1. An anonymous billionaire investor was quoted in the Wall Street Journal as asking: "Has there ever been a carry trade that hasn't ended badly?" What is a carry trade? Why might it end badly? 2. Interest rates on U.S. ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro