Service Enterprises - Service Enterprises In a service enterprise such as a public accounting firm a law office or a medical practice the critical

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Service Enterprises In a service enterprise, such as a public accounting firm, a law office, or a medical practice, the critical factor in budgeting is coordinating professional staff needs with anticipated services . If a firm is overstaffed, several problems may result: Labor costs are disproportionately high. Profits are lower because of the additional salaries. Staff turnover sometimes increases because of lack of challenging work. In contrast, if a service enterprise is understaffed, it may lose revenue because existing and prospective client needs for service cannot be met. Also, professional staff may seek other jobs because of excessive work loads. Service enterprises can obtain budget data for service revenue from expected output or expected input . When output is used, it is necessary to determine the expected billings of clients for services provided. In a public accounting firm, for example, output is the sum of its billings in auditing, tax, and consulting services. When input data are used, each professional staff
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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Service Enterprises - Service Enterprises In a service enterprise such as a public accounting firm a law office or a medical practice the critical

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