07 May WHICH FORMAT HAVE YOU USED TRADITIONAL OR CONTRIBUTION MARGIN/VARIABLE IF EITHER?
Which do you find to be a higher risk for a business – a higher level of fixed or a higher level of variable costs? Explain.
In what capacity, if any, have you used income statements? Which format have you used traditional or contribution margin/variable if either?
Week 4
Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 100 Sales price increases 10%, variable cost per unit decrease 5%, units sold decreased 5%, fixed expenses decrease by $6 from the original figures. What is NOI/NOL?
Week 5
While the article does not give such specifics, if internally Microsoft had a segment of business devoted to X-box, what do you believe the X-box segment margin was (in terms of positive or negative)? Why? Both a positive or negative response could be supported.
Week 6
What were some of the examples of “subterfuge” mentioned in the article, “Why Corporate Budgeting Needs to be Fixed?” Please use complete sentences.
http://hbswk.hbs.edu/item/why-corporate-budgeting-needs-to-be-fixed
What does the term “big bath” mean in the context of the article?
http://hbswk.hbs.edu/item/why-corporate-budgeting-needs-to-be-fixed
Describe any experiences you have had or experiences others have had with the limitations listed in the “Limitations of Budgets” listing. Please use complete sentences.
http://www.tutor2u.net/business/reference/budgets-limitations-and-potential-problems
Week 7
What is an advantage and a disadvantage of the rolling budget? Include any personal experience or opinions you have. Please use complete sentences.
Discuss one of the ways to embrace rolling budgets. Please use complete sentences.
How does Management by Exception keep supervisor costs in check?
Not all variances should be investigated. Only the negative ones should be investigated. Agree or disagree. Explain. Please use complete sentences.
Not all negative variances should be investigated, only those that are 2 or more standard deviations from the mean. Agree or disagree. Explain. Please use complete sentences.
What additional factors does a Flexible Budget Performance Report take into account that Budget Report overlooks and why are those factors important?
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