CASE 15-1 Private Fitness LLC

CASE 15-1 Private Fitness LLC - Private Fitness LLC Case...

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Private Fitness LLC Case 15-1 To run this simple privately-held business, Rosemary does not have to be concerned with generally accepted accounting principles. She does need to keep records that will allow the easy preparation of a tax return. But her primary concern should be in maintaining systems records that allow her to manage the business effectively. These include the following: 1. Scheduling system. What instructors, and other employees, should be on duty at what hours? When should classes of particular types be scheduled? What rooms should be used for what purposes at what hours? When should facility cleaning and maintenance be scheduled? What is the capacity utilization? Are more space, equipment, or instructors needed? 2. Revenue system. Revenue is dependent on the number of clients attending classes and private workouts. 3. Payroll system. What pay is due the employees? Most of the compensation is commission-based, paid as a percentage of revenue associated with the instructor’s activities. But the manager, Kate Hoffman, is also paid a salary. 4. Operating cost system. Bills for on-going items, like rent, heat, and light, need to be paid on time. The expenses need to be recorded accurately and tracked over time so that trends can be
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CASE 15-1 Private Fitness LLC - Private Fitness LLC Case...

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