Case+5+-Questions+docx - operations Why Discuss the...

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Case 5- Budgeting and Responsibility Accounting 1. What specific factors should the Company consider in preparing its revenue budget for the next year? Should the Company budget approximately equal sales revenue and operating expenses for each of its four quarters? Why or why not? What implications does this have for cash planning, procurement planning? 2. Is the Company’s cash balance on 12/31 representative of its typical cash balance throughout the year? 3. Does the Company face more or less than typical uncertainty in forecasting future
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Unformatted text preview: operations? Why? Discuss the Company’s sensitivities to macroeconomic changes. 4. List and briefly explain five of the most important uncertainties that the Company faces in preparing its budgets. What additional challenges must the Company surmount to prepare its budgets? 5. Identify four common types of responsibility centers. Give an example of each type of responsibility center in the Company you are analyzing. 6. Prepare a memo to the CEO summarizing your analysis and conclusions....
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