Economics Answers

Discuss the process of preparing a budget.


Question is about preparing a budget

include the budget types

Consider an example of a new car sale yard and the managers predicted that they would sell 1,400 of model A and 1,800 of model B in the fiscal year. They would prepare their budget accordingly. Sales of model A did not meet expectations and sold 1,200 units. Model B had sales rise to 2,400 vehicles for the year. The expected margin on each vehicle is $2,000 for model A and $3,000 for model B.

Calculate the predicted and actual sales mix and the impact of the variations on income.

Part way through the production process it is discovered that the cost assignment was inaccurate for product A and that there has been an underestimation of $150 per unit. They are unable to change the pricing because of contractual obligations.

What is the impact of this error in cost assignment if sales were as predicted?

A furniture manufacturer predicts that they will sell 12,000 of product A and 8,000 of product B in the next financial period. They prepare their budget accordingly.

At the end of the financial period the actual figures are 15,000 for product A and 7,000 for product B. Costs are assigned and the wholesale margin on product A is calculated to be $450 and on product B it is $350.

Calculate the predicted and the actual sales mix, the variances that need to be examined and their impact

Meaning of Alphanumeric classification


Meaning of Chronological classification

Meaning of Keyword classification


Meaning of Information management system

''Because of economies of scale, it is something more cost effective for a firm to operate a larger plant at less than maximum efficiency than small plant at maximum efficiency''. Do you agree with this statement? if so explain

Question-The activity statement allows a business to calculate obligations, allowing a single payment or refund for each reporting/ payment period, across the taxes.

For example, if in a quarterly reporting/ payment period, a business had:

a GST credit of $15,000
a PAYG instalment liability of $6,000
a PAYG withholding liability of $1,500, and
an FBT liability of $1,000
Would the business need to make any payments?

Answer-When it comes time for the business to make payments for the financial year they will need to make one payment of fringe benefit tax which is about $1,000 and the lodgement for it is quarterly. Fringe benefit tax is a separate tax from income tax.
But when it comes to the other amounts for the financial year their will be no other payments that need to be made.

Feedback-Have not understood the use of the BAS, the FBT will be recorded on this BAS and have not answered id payment is required and why

Question-Describe a process that could be used for collating, coding, and classifying accounts data in preparation for processing.

First Attempt-After you have collected all of the data, you will have to use the method which coverts raw data into meaningful statements, which include data processing, data analysis and data interpretation and presentation. Data reduction mainly comprises of various manipulations that need to be done for the preparing of the data for analysis. This process can be done either manually or electronically. It involves editing, categorizing questions with open ends, coding, computerization and preparation of tables and diagrams.

Feedback-Insufficient explanation of process of collating, coding and classifying accounts data.

briefly analyse the economy of China; forecasting or predicting to the fullest
extent possible, the significance and impact of a range of critical issues on hair care industry.