Question

In: Accounting

Question: As the senior management team of the company, you are required to revise the budget...

Question: As the senior management team of the company, you are required to revise the budget for 2020 to take into account the impact of recession

can I have the answer for this question

Solutions

Expert Solution

Being the senior management team member of the company who are involved in the making of the budget for the forthcoming year 2020, we have to consider the revision of the budget 2020 due to recession. The impact of the recession on the budget would be:

a) The revenues would be adjusted to the reduction of the growth rate of economy or GDP. Lower the income of the society will lead to lower purchase of company’s product.

b) The recession will lead to reduction in expense on the inputs like materials and lay-off of labors. Thus the expenditure on the budget is revised.

c) The volume of the sales units along-with the reduction in the selling price (due to recession) have to be up-dated in the revised budget.

d) The fixed costs like depreciation, interest, insurance, etc. have to be kept constant and are not subject to change in the revised budget.

e) The tax increase impact due to recession has to be revised on the budget.

The Budget preparing team have to calculate the reduction in economy growth rate or GDP, so that proper revision of the Budget take place.

===========================


Related Solutions

As a management accountant, what recommendations are you going to give to the senior management team...
As a management accountant, what recommendations are you going to give to the senior management team to manage and reduce cost?
9. The management of a professional baseball team is in the process of determining the budget...
9. The management of a professional baseball team is in the process of determining the budget for next year. A major component of future revenue is attendance at the home games. In order to predict attendance at home games the team statistician has used a multiple regression model with dummy variables. The model is of the form: y = 0 + 1x1+ 2x2 + 3x3 +  where: Y = attendance at a home game x1 = current power rating...
The senior management of the company have requested you to provide a report on the following...
The senior management of the company have requested you to provide a report on the following for a selected client who intend to invest $250,000 LO 1.1 Select one or more companies that you want to invest in London stock exchange. Link to the London Stock exchange is http://www.londonstockexchange.com/home/homepage.htm • Provide justification as to WHY you want to invest in this company or companies • Who will be the company's stakeholders? • Why would they be interested in this company?
You are in senior management in a South African company that exports fresh produce to the...
You are in senior management in a South African company that exports fresh produce to the SADC region. Your company seeks to grow its footprint into Africa. You have been tasked to identify two countries in the East African Community where there are lucrative opportunities for exporting fresh produce. You have been asked to select these two countries on the basis of the extent to which each of the two countries in the EAC is globalised. You have done your...
You are a senior member of management for a development and construction company where the original...
You are a senior member of management for a development and construction company where the original two owners wish to retire and sell the business. Along with several experienced co-workers, you are considering a buyout of the business. As part of your due diligence, you have performed some analysis of the historical financial statements and determined the following: ·         Audited financial statements indicate a net book value of $4,500,000. ·         The owners recently had the tangible assets appraised and the...
            Question 1 (word limit: 600 words)             You are part of the management team in...
            Question 1 (word limit: 600 words)             You are part of the management team in a medium-size Internet server company. Driven by rapid changes in the business environment in recent years, the management team has decided that the company’s management accounting practices have to be focused on the customers. The company is just two years old and is growing dramatically, doubling its customer base every six months. Required: (a)        Identify three typical customer's needs and service expectations of most...
You are an audit senior in ROA Associates. You are part of a team assigned to...
You are an audit senior in ROA Associates. You are part of a team assigned to Lucy Beauty Ltd (a manufacturing firm listed on the GSE). Your team leader allocated to you two of the following components: (ii) Purchases; (iii) Revenue (iv) Cash & bank transactions. (v) Property & Equipment Required a) Identify ALL assertions relevant to the audit of each of the components assigned to you and indicate the possible risk associated with the assertions identified. b) For each...
Imagine that you are part of the management team for Econsoft, a computer software company. You...
Imagine that you are part of the management team for Econsoft, a computer software company. You are discussing one of your products, “Econblaster,” with the company’s CEO and the other managers. You have made the software available for download on your firm’s website for download for $9.99 and you are trying to figure out how to generate more revenue from the product. Half of the management team suggests increasing the price to $11.99. The other half advocates cutting the price...
what is required from the management team when start new project?
what is required from the management team when start new project?
As a member of the international strategic management team in your company, you are assigned the...
As a member of the international strategic management team in your company, you are assigned the task of exploring potential foreign market entry. As part of your initial investigation, you want to know if there is a difference between developed markets and emerging markets with respect to the time required to start a business. You select 15 developed countries and 15 emerging countries. The time required to start a business, defined as the number of days needed to complete the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT