Wiz Calculator and Grand Jean

Debby Febriany

1101002011

Case 4-4

Whiz Calculator Company

From the information given in Exhibits 1 and 3, determine insofar as you can whether each item of expense is (a) variable with sales volume, (b) partly variable with sales volume, (c) variable with some other factors, or (d) not related to outputvalume at all.

Based on data from the display 1 and 3, item cost of sales in the branch A dapatkita classified into:

Costs are variable with volume sales: sales force compensation.

Costs are partly variable with the sale: office servants salaries, travel expenses, office supplies, postage costs, subscriptions and dues, donations, advertising costs, social security taxes, and expenses other branches.

Costs are variable with other factors.

Costs associated with sales volume: manager salary, rent, depreciation and lights and heaters

If the item is a variable expenditure to sales volume, then secarasignifikan items such expenditures directly affect the sales volume. That is, if sales volume increases, the company has increased spending alsowill. In this case it is possible pengeluaranyang uncontrolled or unplanned expenditures, result, no corrective actions to avoid wastage. Dapatdilakukan no better expenditure planning for the years to come.

When spending item is part of the variable volume penjualan.Hal indirectly reduce the volume of sales as point 1.a. above, in actual cost savings can still be made ​​in the sale.

If the item is a variable expenditure against several other factors that also influence the same as in point b

When items of expenditure not related at all to the output. In this case these costs will not be affected by the increase or decrease in sales volume.

What bearing do you conclusions in question 1 have on the type of budgeting system that is most appropriate?

Managers can compare actual costs to budget for month - bulanyang concerned and can predict upcoming expenditures . The benefits of benchmarking are :

The budget...