Southwest State Bank’s lower Expense Ratio is a result of lower interest expense and non-interest expense. The first factor on better controlling expense is interest expense. The total interest expense of Southwest State Bank is 0.24% lower versus peers, which include the interest on CD’s over $100M (0.83% less), Total deposits (1.14% less) and so on. But the most important parts are the source of funds from Money market deposit accounts and Time deposits under $100M. Money market deposit accounts which need to pay only a little interest to our depositors are 20.40% higher than peers, but Time deposits which need pay a lot interest are 14.84% lower than our peers.
The Herrestad Company has a classic problem: two products that use fixed overhead disproportionately ("Activity based costing", n.d.). That is, according to the data given in Table A below, product A uses more production runs and more sales reps than product B. Also, there are far fewer units of Product A, meaning that each unit requires a great deal of overhead resources to support. Although the sales price of Product A is high, and therefore one might think that they are charging enough to carry all this extra overhead attention, but profitability analysis indicates otherwise. Table A Use of fixed overhead resources by product line Productionruns(not$) Numberofsalesreps(not$) Total 100 25 ProdA 65 15 ProdB 35 10 Profitability will be reviewed in two parts, first we will analyze the contribution margin, and then product line profitability overall, including fixed costs.
This means that Costco is doing a very efficient job in using its assets in creating sales. Costco’s equity multiplier has ranged from 1.88 to 2.27 from 1999 to 2008. The average equity multiplier in this time period was 2.06 compared to the industry average of2.34. Costco is slightly lower than the industry average. To increase their financial performance the company should increase their financial leverage and rely on more debt to finance their assets.
Traditional allocations with one resources to spread overhead often charges products an "average rate" and so fussy and difficult products get a break (charged less than they consume or "under costed") and easy low-hassle products look worse than they are (charged more then they consumer or "over costed"). Companies that benefit from ABC are those that have significant levels of variable overhead and those with products that use disproportionate share of overhead resources. Companies with small overhead or products that all use overhead in about the same proportion would get about the same overhead allocation under traditional and ABC methods. Since ABC methods are more work (so more expensive), if there isn't a benefit, it is better to stick to a simpler and cheaper method. Krishnan (2006) implemented ABC at a university (actual university was kept anonymous in the study) to help them understand their costs and cost drivers in order to better understand why their operation costs were so high.
Two disadvantages to automation are that it costs more and it is not easily changed. 6. A products margin is determined by subtracting its manufacturing cots (labor and material) from its price. Logically, higher prices and lower labor and material costs result in higher margins. Keeping in mind the customer buying criteria, how would you increase margins for a low end product?
The kiosk was the other method that had good results but was also expensive when you see the total cost. Western Washington seem to have better results for hiring when it comes to referrals and kiosk but spend a lot of money on both. Eastern Washington division differs from western when it comes to its recruiting methods. The eastern division results show that they only used media, referrals, and kiosk methods. More people applied using the media, but
Employee knowledge, experience, education, and performance would be reasons for differences in pay within a pay structure level. Someone who has more knowledge and experience should make more than someone who is just starting in a given job or career. In determining raises and other compensation, merit pay systems seem to be fairer than seniority pay systems. The text states that seniority pay and longevity pay systems reward employees with periodic additions to base pay according to employees’ length of service in performing their jobs. In my experience at working for an organization that uses seniority pay, there is not a lot of motivation to work harder than anyone else.
Per note 26, BA has £769 million of “sales in advance of carriage” as of March 31, 2009. Requirement 2 Under both U.S. GAAP and IFRS, liabilities associated with a past event are recorded when the obligation is probable and the amount of the obligation can be reliably estimated. However, IFRS defines “probable” as “more likely than not,” which is a lower threshold than is typically applied under U.S. GAAP, so BA is more likely to recognize a liability under IFRS than it would under U.S. GAAP. Also, under IFRS BA is more likely to discount the liability (recording it at present value) than it would under U.S. GAAP, so, given that a liability is recognized, the amount of liability that is recognized may be lower under IFRS than under U.S. GAAP. Per note 30, the total amount of “provisions for liabilities and charges” increased from £380 million to £438
Immigrants born in India outdo others in achieving economic success in the Untied States. At the same time, Pakistan-born immigrants, while trailing behind Indians, do better than the native-born Americans. While both immigrant groups originate in South Asia, huge disparities in their economic success exist in the US that needs further exploration. The estimates reported in the 2010 American Community Survey revealed that the median salaried household income of India-born immigrants was around $94,700. In comparison, the median household income of native-born Americans was estimated at $51,750.
It has been argued that immigrants give a great economic contribution for a country, even its’ effect is higher than the native people itself. (changes this statement). The non- partisan Congressional Budget Office (CBO) announced that undocumented foreigners give higher contribution in taxes than providing services value at the federal level (CBO, 2007). Moreover, immigrants had already contributed £25bn to public finances, based on a research that was investigated about immigrants’ contribution. For instance, European economic area society allocated 34% extra taxes than they actually earned, turned them become the most contributed migrants.