Minimum wage represents a government involvement in a nation economy, although businesses are often wary about the prospect of the government making major economic decisions. In the U.S., Congress sets a federal minimum wage that businesses must follow. Individual states can also create separate minimum wage laws above the federal law. Intervention from the federal and state government can create a difficult business environment. Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate.
Protectionism can also include import quotas, or the restrictions on the quantity of imports allowed to enter a country. Also, slower economic growth and global tension, which can lead to conflict between nations. 19. Identify how exchange rates are determined in markets and how governments can influence these
M4–Analyse the reasons why costs need to be controlled to budget In this assignment I will analyse the reasons why costs need to be controlled to budge. If costs are not measured by Debenhams then their profits will be badly affected therefore budgeting is one process to regulate costs as it gives the organisation an approximation or a target on what their cost and revenue should be. A business has to budget and control expenditure in order to see what has been received and paid out, otherwise unrestrained spending could occur and decline could happen. One of the difficulties that could occur if costs are not controlled to budget is: high fixed cost per item which decreases businesses profit and ability to compete. Debenhams are very effective at controlling its costs to budget as the results were good for sales revenue throughout 2013.
Our money supply affects the country’s economy, interest rates, and borrowing. Erratic increase or decrease in prices of commodities of other items, if continued unabated for a substantial period, can be a source of imbalance in the economy. Why it is important to increase economic growth? It is important to increase economic growth to keep the economy moving forward to prevent job losses, and business closures, which in return you will have, a low money supply. My rationale for the Reserve Requirements would be by lowering the reserve requirements, and the banks will be able to have more money to loan, and then increasing the money supply.
The reason for increased operating income is the deferral of fixed manufacturing overhead contained in unsold inventory (Chapter 9: Absorption/Variable Costing, n.d.). * One motivation for an undesirable buildup of inventories could be due to the fact that a manager’s bonus is based on absorption-costing operating income. * Top management, with help from the controller and management accountants, can take several steps to reduce the undesirable effects of absorption costing. * Focus on careful budgeting and inventory planning to reduce management’s freedom to build up excess inventory. * Incorporate a “carrying charge” for inventory in the internal accounting system.
The price elasticity is important in business because it refers to the change in quantity demanded to the change in the price of a service or product. Elastic demand is a change in the price of the service or goods that can affect the demand. Will Bury product is different, and the success of his product can assume that the price can be elastic for his product. In the market, there are similar products that are available for different prices the lower the price may work out better in attracting new buyers. However, in Will Bury situation he may have to raise prices and sell more items to bring in more
* Product lines that were not covering their avoidable costs could be dropped. * New product development is likely to receive more focus as the review program identifies areas of increasing demand. * Gourmet is likely to benefit from better monitoring of competitors’ product development, prices, and market share trends. F. This is an open-ended question; the specific steps are likely to vary based on the circumstances and the information found. Analysis for a given product might include the following general steps: * Identify the product to be analyzed by using a quantitative monitoring technique (e.g., size decline in contribution margin or sales) or some other method * Obtain and analyze detailed revenue and cost data prior periods; look for negative trends * Obtain and analyze the correlation of sales for this product with other products; look for potential relationships with other products that might influence a decision to drop the product * Obtain and analyze industry information about the product; look for information about trends in customer tastes, competition,
I would recommend that CCL make the above changes immediately so that the financail statements are not incorrect. These changes would help CCL reduce its future taxable income when it may be more profitable. 2. Allowance for Doubtful
ECO/372 Learning Team Aggregate Demand and Supply Models The Keynesian economists would look at the current proposal of increasing taxes as a governmental expression of the intermediate approach to the economy. The government taking control and having the people pay the price for their higher tax bracket. These funds would be used to decrease the amount of money owed by the United States. The effects of the economy would be absorbed and educated responses would be to lessen those impacts. To increase their taxes would be appropriate and this would be stream lining taxes at a time when the economy needs a boost.
A more difficult and time consuming effort Huffman could take to reduce exchange rate risk is to spin the rate to your advantage (Prinzel, 2013). This means when USD exchange rates are high, Huffman would need to ensure their customers are aware of the benefits they could be receiving in discounts. Relative to Huffman Trucking’s benefit with this approach, they could buy foreign exchanges when rates are low, similarly taking advantage of the same benefits their customers would