Finance and accounting<\/p>\n
Factors that explain the difference between the planned and the actual results:<\/p>\n
Contingency; the budget planners did not include room for any contingency expense that could have arose from the planned budget. Therefore, this brought about the deficits from the books of accounting hence the slight difference between the actual and planned expenses.<\/p>\n
Withdrawals by the partners; the company partners did withdraw their benefits before final calculations for the company were drafted hence this led to the actual calculations exceeding the planned calculations.<\/p>\n
Charges per hour were fixed; on the contrary the number of working hours was not fixed; this per hour payment for repairs were ascertained but the number of the working hours were unknown, furthermore, there was no provision for any payment for overtime hours, in case the repairs were not completed in due time.<\/p>\n
Miscellaneous, advertising, office rent and depreciation expenses were treated as fixed expenses; during the end year tabulations of results, advertising expenses were found to be $500 more than the planned amount, hence, this caused the deficits in terms of profits. On the other hand, miscellaneous expenses were found to be $100 less than the planned amount.<\/p>\n
Taxation; the company didn\u2019t provide any avenue for taxation expenses hence; this is one of the prime reasons why the planned profits was never achieved. The planned taxation had to be stated along with all the other possible portfolios.<\/p>\n
Reconciliatory statement of planned versus actual profits;<\/p>\n
Planned profits ($)Actual profits ($)<\/p>\n
Contingency 5074537914<\/p>\n
Withdrawals 115001400<\/p>\n
Per hour charges7820098400<\/p>\n
Miscellaneous 1000<\/p>\n
Advertising 0500<\/p>\n
Taxation (30%)196920199251<\/p>\n
Totals 337465337465<\/p>\n
Flexed budgets on the volume of jobs;<\/p>\n
Types of jobscost ($)\/hourrevenue ($)<\/p>\n
Band major repairs40(390)15600<\/p>\n
Band minor repairs30(1830)54900<\/p>\n
Orchestral major repairs30(540)16200<\/p>\n
Orchestral minor repairs28(1560)43680<\/p>\n
Rush jobs20(50)1000<\/p>\n
Flexed budgets on expenses;<\/p>\n
Type of expensecostsrevenue<\/p>\n
Miscellaneous44000<\/p>\n
Advertising120000<\/p>\n
Depreciation36000<\/p>\n
Office rent64000<\/p>\n
How compensations arrangements affects profits;<\/p>\n
The annual salary for the three partners of $60,000 and 5% sales revenue for the three partners is too much for the company since the total profit outcomes is not adequate to cater for the excessive reward package.<\/p>\n
The charge per hour of $20 dollars is unaccounted for since, there is no apparent strategies set out to follow up on the laborers to ascertain for the time that they spend performing their tasks.<\/p>\n
The company does employ workers in relation to their past experiences, they ought to consider employing subsidiary personnel who have qualifications but can be enrolled as interns. This will reduce the cost greatly hence maximum profits can be realized.<\/p>\n
Recommendations; <\/p>\n
The company should consider hanging their compensation arrangements for their partners; it should be greatly to a significant amount that will not affect the profits of the company as well as the sales revenue.<\/p>\n
The company should also consider employing workers in respect to qualifications and not based on their past experiences, this will greatly reduce the expenses of the company.<\/p>\n
The expenses should not be treated as fixed charges, but as flexible charges. This is because charges changes with time and are not constant.<\/p>\n","protected":false},"excerpt":{"rendered":"
Finance and accounting Factors that explain the difference between the planned and the actual results: Contingency; the budget planners did<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50887","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\n