It is the responsibility of Retail Banking to ensure that payment for expense is processed in the first instance and that secondly an adjustment allocation is charged back to both Commercial Banking and Financial Planning cost centres for the expense. The cost allocation basis that is utilised is calculated on the amount of floor space that is allocated to each department which also has a direct correlation to the number of full time equivalent staff. The cost allocation is agreed prior to each financial year by the stakeholders namely the Heads of Retail Banking, Commercial Banking and Financial Planning and is reviewed annually. Once agreement has been reached the outcome is communicated to relevant parties prior to the reporting period. The allocation of space and staff numbers for the reporting period 1st July 2013 to 30th June 2014 are detailed below.
These details help to do a root cause analysis to prevent future defects. Timing-meet dates for certification of new components. Certification verifies new parts meet specs and a certification permits the parts to be used. Costly if delays in production due to a part or component not being certified. Delivery-Production schedules set one week in advance.
A cash flow statement will show not only the cash that is left at the end of the day, but also the amount that entered and left the business. This allows the company to see whether the cash in the business is increasing or decreasing. It is important to know this before the cash in the business gets too low. The business might have many active jobs but lagging receivables can be a problem when it comes to covering unexpected expenses. A cash flow forecast is also prepared which gives an estimate of the amount of cash the company expects to flow in and out and also includes all the projected income and expenses.
(4 points) Problem 5: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order. For this subassembly, find: a) Economic order quantity. b) Annual holding cost.
The auditor’s estimate did show extra time to address that portion of the audit. The estimate should have also stated that if the time allotted was not sufficient an hourly rate would be applied to a reasonable, maximum number of hours, discussed with the client before proceeding (Eldenburg & Wolcott, 2005). The auditor should be required to communicate any deviations from the original estimate with the audit committee. Possible ways to resolve the issues and complete the audit in a reasonable and effective manner should be discussed with the committee. Communication and asking for assistance especially when the task becomes overwhelming is important.
Having suppliers provide us with a written schedule that details their quality control process would give us a better understanding of the importance they place in this phase. How would they monitor meeting our specifications and expectations? Also, if there is a product failure, how fast will the turnaround be before an acceptable replacement can be delivered fully operational? The amount of inventory on hand that the suppler has or will have in order to meet our demand also demands our attention. What type of inventory control system does the supplier use?
KPI’s enable you to measure progress towards it goals along a specific path by monitoring progress immediately and are able to be adjusted in real time. Therefore KPI’s need to be measurable and current and tied directly to individual or teams. These indicators should be able to be measured on a daily or weekly basis to ensure that if performance slips measures are taken for improvement and the success of these interventions are identifiable. Activity 4 Explain the role of an impact assessment in contingency planning and outline the steps within it. Impact assessment is the process of identifying the future consequences of a current or proposed action.
Using information given in question C, the $16,200 in new machinery will be divided up over 36 months. This additional cost will add $450 per month to Molly’s fixed costs, bringing her total to $2,150 monthly. With that given information, Molly would need to clean an additional 529 items a month to break even. The answer was derived by using the following equation: $2,150 ÷ (1.1 – $0.25) – 2000 = 529.412
It is very important to involve the SMEs in the cost planning also to get the accurate estimate for the cost. After the budget is planned it is critical to monitor and control the project’s cost. Earned value analysis helps monitoring the project cost. Monitoring the project cost against the actual cost provides the project manager how to handle the rest of the project. The sooner the issues have been caught the sooner it has been taken care.
• A set of standard product development milestones needs to be established with allowable time variance based on historical and industry benchmark. Besides, at the beginning of the project a set of predetermined accountability points to be established between the top management and the project leaders and the performance of the project should be measured based on those. • A monthly meeting between the top management and the project leaders would help to monitor the projects as per the plan. Necessary corrections and change in plan may also be