case5 - CASE 5 1. Yes. All organizations should set goals....

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© 2008 For Instructor Use Only Case 5-1 CASE 5 1. Yes. All organizations should set goals. A large-scale project such as a professional rodeo may not make a profit in the first year. Based on ticket sales, the Auburn Circular Club Pro Rodeo Roundup appears to be a popular attraction. Therefore, if the club uses management account- ing techniques successfully to plan, control, and monitor activities, the project should produce a profit in the future. Civic organizations often give back to the community in a variety of ways, such as providing scholarships, making donations to worthy causes, and volunteering. Auburn Circular Club wants to give back to the community by providing entertainment to the public through an enjoyable three-day family event. Funds raised by the rodeo will then be filtered back into the community via traditional channels. By sponsoring the rodeo, Auburn Circular Club gains exposure through public radio announcements, fliers, and advertising posters throughout the community. Patrons will look forward to next year’s entertainment, will tell others, and ticket sales will increase. Patrons may also seek to join such a civic-minded organization and support future fund-raising efforts sponsored by the club. 2. Like profit-seeking organizations, nonprofit organizations should make sure an activity is worth the required investment of time, effort, and monetary resources. Jonathan’s comment implies that the rodeo is expected to fulfill the organization’s goals and objectives. 3. Yes. Jonathan views this project as a capital investment for the organization—not the purchase of tangible, long-term assets—but a project that will have a positive impact on the organization over a long term. In other words, even though the rodeo reported a loss in its first year, Jonathan appears to believe the rodeo will be profitable in the future and that the community is well served by the club providing a high-quality, family-oriented event.
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This note was uploaded on 12/12/2009 for the course ACCT 2102 taught by Professor Constable,d during the Fall '08 term at Georgia Perimeter.

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case5 - CASE 5 1. Yes. All organizations should set goals....

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