Essay about Case Analysis

1811 Words Nov 4th, 2013 8 Pages
A. A static budget is an accounting tool that is completed before the budget periods that are being forecasted and fixed for the whole period covered by the budget without any changes and based on actual activity. If sales volumes change, then we will not need to change the amounts listed in the static budget (What is a Static Budget, 2013). To get the static budget for the next period, the prior year’s results can be used. For the 20X9 the 20X8 results can used as the basis for the benchmark.
B. We start by adjusting the 20X8 variable costs to show the activities of 20X9. The 20X9 amounts can also be adjusted for any known price changes.
20X9 estimates
Divide each variable cost by the level of of activity of 20X8, then multiply
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Sometimes employees in a workplace environment may engage in theft. Anderson (N.d), attributes dishonesty in the workplace to low morale which can cause employees to engage in theft in the workplace. The variance seen in cleaning supplies could stem from theft on the part of disgruntled employees who feel that they are underpaid.
-Could the Nurses salary be reduced? The nurses may be a bit overpaid. Tehrani (2012) offers the option of gradually increasing the salaries of employees that perform better than their peers with raises each year as compared to rewarding them with high salaries.
-Could there be low morale amongst the homemakers who are possibly retaliating for being underpaid? “Dishonesty in the workplace can be a cause of low morale, but it can also be triggered by an existing atmosphere of employee dissatisfaction as well” (Anderson, N.d). Low morale in a workplace can lead to several problems such as theft, falsification of time sheets and lack of productivity.
-Are the nurses’ raises a bit unrealistic? Companies should be sure to monitor raises given to employees. According to Tehrani (2012), there are people who stand out in the workplace and those are the people who should be rewarded. By rewarding the nurses who stand out among their peers, they can cut down on the number of raises that they offer.
D. “Variance can be defined

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