solution

Which of the following statements best describes the concept of control?

a. The steps taken by management to increase the likelihood of meeting objectives

b. The use of budgets to achieve objectives

c. The retention rate of new hires

d. The ratio of managers to associates in an organization

2. The fifth stage of the values-based approach to incorporating ethics in budgeting involves ______.

a. prioritization of values

b. identifying values

c. analyzing previous processes

d. the introduction of values into activity-based budgeting

3. A/an ______ budget lays out the spending plan for costs related to production of goods and services.

a. departmental

b. master

c. operating

d. finance

4. Stan was asked to create a budget to motivate his sales force to exceed the department’s projected sales goals for the year. What kind of budget should he use?

a. Bracket budget

b. Stretch budget

c. Motivational budget

d. Add-on budget

5. A/an ______ budget focuses on the cost of actions that are undertaken to achieve an outcome.

a. activity-based

b. incremental

c. outcome-focused

d. flexible

6. What best describes the reason that managers use rolling budgets?

a. To fund a one-time project

b. To have a stable, fixed budget throughout the year

c. To stay focused on the big picture rather than short-term objectives

d. To make adjustments to the previous year’s budget, accounting for inflation

7. Glenda is creating a value proposition budget. Which of the following questions should her budgeting team be able to answer as they create the budget?

a. What was last year’s revenue?

b. What does the cost-benefit analysis reveal?

c. What are the results of our ethics assessment?

8. As an IT Director, Gary is held accountable for the IT budget in the company. He has complete control over the equipment and tools used by the company, and has to answer for that portion of the budget. This is an example of ______.

a. executive revenue

b. responsibility accounting

c. holistic accounting

d. total fiscal accountability

 
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To: Junior Associate

From: [email protected]

Subject: Client: Adonis Georgiadis

Hi Junior Associate,

I’ve just been on the phone to a new client. His name is Adonis Georgiadis. He wants to come and see a lawyer for legal advice. I’ve made an appointment for tomorrow but prior to that I need you to do some research on the matter for me.

Here are some notes I managed to take down on my telephone conference call with Adonis this morning:

Adonis is the new owner of a Melbourne based Greek restaurant called ‘Georgie’s Greek Cuisine.’ He is seeking advice in regard to a batch of ruined linen that he had sent for cleaning at Dry Co Pty Ltd (a dry-cleaning service).

Adonis explained that he needed to establish a contractual relationship with a reputable dry-cleaning service to clean his tablecloths for the newly established restaurant business. He said that his wife, mother in law, and mother had all been busy washing the linen over the last few months and he felt it was time to engage in a service to do this as the demand was too much for his family.

Dry Co Dry Cleaners Pty Ltd are a reputable dry cleaning service according to google reviews and after speaking with them and establishing that the company could take on this regular work, he delivered 100 white linen cloths to Dry Co Pty Ltd to be cleaned.

He said that when he went to collect the cloths last week, 50 of them had orange marks, in the shape of dots, all over them. Adonis believes that the marks look like rust spots. He says that they are stained and completely ruined. What is worse is that 20 of the clothes could not be found at all by Dry Co Pty Ltd. He says that from 100 cloths, he now only has 30 which can be used in his restaurant. He said that he had to go out and purchase another 70 tablecloths in order for the restaurant to run efficiently over the next few weeks which has now set him back $3500.00.

Adonis said that he was furious that not only had Dry Co ruined his tablecloths, but they also were so careless that they lost some of them. He said he demanded that they pay him the cost of the 70 new tablecloths that he had to purchase but they completely refused. Adonis said that he asked to speak to the manager who smugly showed him the back of the dry-cleaning receipt that he was given after he dropped the tablecloths off to Dry Co and said “It’s not our fault. Have a look at the back of your receipt.â€Â

Adonis has given us a copy of the receipt which states:

“Dry Co Pty Ltd will not be liable for any loss or damage for any articles which have been left for cleaning, whether by the negligence of its servants or agents of the company or otherwise.â€Â

Adonis said that the manager also pointed to a sign within the shop, that is visible as customers enter the dry-cleaning store. The sign is in bold capital letters. Adonis has taken a picture of the sign on his phone and has shown it to me. The says:

“LEAVE YOUR ARTICLES HERE AT YOUR OWN RISK – PLEASE MAKE SURE YOU TAKE YOUR RECEIPTâ€Â

Adonis is coming in for an appointment tomorrow, so I need you to draft a memo of advice.

Adonis is eager to know whether it would be worth his time and money to commence litigation. In your memo of advice, could you therefore please address the following:

  1. Critically discuss Adonis’ rights under contract law and consider whether he might be able to recover his losses. I will need to know all relevant case law and legislation so please refer to this in your argument.
  1. If we proceed with litigation, critically explore whether we should consider a legal claim under The Australian Consumer Law in relation to Adonis’ ruined and lost tablecloths?

 
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  1. Laws. Provide an overview of two of the following laws. Discuss their intent, main features that guide or influence the activities of Human Resources, and the behaviors they are intended to encourage and discourage – give examples when possible – and a discussion of the role of the EEOC, if any.
  1. Title VII of the Civil Rights Act as it relates to the prohibition of discrimination by employers on the basis of race.
  1. Title VII of the Civil Rights Act as it relates to the prohibition of discrimination by employers on the basis of sex.
  1. The Age Discrimination in Employment Act of 1967 (ADEA).
  1. The doctrine of employment at will.
  1. Americans with Disabilities Act (ADA)
 
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Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $63, $95, and $135, respectively. The production requirements per unit are as follows:

Number of
Fans

Number of
Cooling Coils

Manufacturing
Time (hours)

Economy

1

1

8

Standard

1

2

12

Deluxe

1

4

14

For the coming production period, the company has 220 fan motors, 340 cooling coils, and 2,600 hours of manufacturing time available. How many economy models (E), standard models (S), and deluxe models (D) should the company produce in order to maximize profit? The linear programming model for the problem is as follows:

Max

63E

+

95S

+

135D

s.t.

1E

+

1S

+

1D

=

220

Fan motors

1E

+

2S

+

4D

=

340

Cooling coils

8E

+

12S

+

14D

=

2,600

Manufacturing time

E, S, D

=

0

The computer solution is shown below.

Optimal Objective Value = 17700.00000

Variable

Value

Reduced Cost

E

100.00000

0.00000

S

120.00000

0.00000

D

0.00000

-24.00000

Constraint

Slack/Surplus

Dual Value

1

0.00000

31.00000

2

0.00000

32.00000

3

360.00000

0.00000

Variable

Objective
Coefficient

Allowable
Increase

Allowable
Decrease

E

63.00000

12.00000

15.50000

S

95.00000

31.00000

8.00000

D

135.00000

24.00000

Infinite

Constraint

RHS
Value

Allowable
Increase

Allowable
Decrease

1

220.00000

90.00000

50.00000

2

340.00000

90.00000

120.00000

3

2600.00000

Infinite

360.00000

(a)Identify the range of optimality for each objective function coefficient. (If there is no upper or lower limit, enter NO LIMIT.)

E________________________to_________________

S________________________to_________________

D________________________to_________________

(b)

Suppose the profit for the economy model is increased by $6 per unit, the profit for the standard model is decreased by $2 per unit,

 
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