Finance and Accounting for MacLeish Nurseries - Essay Example

Comments (0) Cite this document
The reporter states that MacLeish nurseries need to pursue a course of action that would ensure the company increase their turnover and increase the profit that it posts. This would facilitate the repayment of the loan and increase the earnings that shareholders can get for their capital…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.5% of users find it useful
Finance and Accounting for MacLeish Nurseries
Read TextPreview

Extract of sample "Finance and Accounting for MacLeish Nurseries"

Finance and Accounting
MacLeish nurseries need to pursue a course of action that would ensure the company increase their turnover and increase the profit that it posts. This would facilitate the repayment of the loan and increase the earnings that shareholders can get for their capital. In this case, I would recommend that MacLeish increase the advertisement cot be $800, as this would lead to an increase in the sales in quarter four by $ 2000. This in itself would ensure that the $18 million targeted turnover is realized.
MacLeish should further lower the selling price of their products to result in an increase in the sales level by 4%. By decreasing the selling price, MacLeish will be in a position to increase the amount of profits that it would report in the financial statements hence increase their ability to increase the amounts of their loans and be in a position to make the repayments. I therefore recommend that MacLeish increase their investment on advertisement and lower their prices to benefit from the elastic demand nature of their products.
Bedford property management just like any other company must undertake variance analysis as a way of managing their costs and ensuring efficiency. In the calculation below, it is evident that the company has recorded adverse variance in all areas and the management must therefore move with speed to control to take corrective actions.
In the case of labor cost variance, Ms. Kim should ensure that close supervision is conducted to eradicate the inefficiency. At the same time, Kim has to reduce the rate per hour rewarded to the workers. The variances with regard to the number of respondents must also be corrected to increase the turnover. Management has to increase their marketing strategies to ensure the number of customers served increase to remove the adverse variance. The rates charged to the clients should also be as per the standards to eliminate the rate variance. Finally, the management has to control their overhead costs by reducing the expenses like rent, maintenance, and insurance to eliminate over expenditure. In conclusion, variance analysis should be carefully done to ensure profitability and success.
Actual no responded to=10000
Actual rate= 100
Budgeted no of respondents= 15000
Budgeted rate=110
Budgeted hour=2
Budgeted cost per hour=25
Actual hours= 25000
Actual cost per hour=30
Fixed overhead budget=100000
Actual overhead= 125000
Service quantity variance= (actual respondents-budgeted respondents)*budgeted rate
= (10000-15000)110
=550000 (adverse)
Respondent rates variance= (actual rate- standard rate) actual respondents
= (100-110)10000
=$100000 (Adverse)
Labor cost variance= Actual labor cost- standard labor cost
Labor efficiency variance= (actual labor hours-standard labor hours) Standard rate
= (25000-20000) 25
Labor rate variance= (actual rate-standard rate) actual hours
= (30-25)25000
Total Fixed overhead variance = actual overhead- budgeted overhead
=25000 (Adverse) Read More
Cite this document
  • APA
  • MLA
(“Finance and Accounting for MacLeish Nurseries Essay - 9”, n.d.)
Finance and Accounting for MacLeish Nurseries Essay - 9. Retrieved from
(Finance and Accounting for MacLeish Nurseries Essay - 9)
Finance and Accounting for MacLeish Nurseries Essay - 9.
“Finance and Accounting for MacLeish Nurseries Essay - 9”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Finance and Accounting for MacLeish Nurseries

Finance accounting

...? Finance accounting Table of Contents Executive Summary 3 Impact of Australian Accounting Standards 3 Reversal write-down 3 Current and non-current assets and methods of valuation 4 Current financial position of BHP Billiton 5 Importance of Reserves in BHP Billiton 6 Conclusion 7 Reference 8 Executive Summary The study shows the impact of the Australian Accounting Standard in BHP Billiton, through which the decision of write-down can be avoided as the decision of write down, is very harmful for any company as such. Thus the current and the non-current assets and liabilities of the company has been assessed so as to investigate on the valuation method thus adopted by the...
6 Pages(1500 words)Essay

Finance & Accounting

...planning stage to identify possible problem areas; in the substantive testing stage as a means of gathering substantive evidence in relation to one or more account balances or classes of transactions (i.e. as a substantive procedure); and in the opinion formulation stage, as a means of gathering evidence as to the consistency of the financial statements with the auditor's knowledge of the business of the entity. (n.d., para.2) With this, it can be summarized that the analytical procedures aim at having a deeper and more substantiated understanding of the client's business, through examining the consistency and validity of the business entity's account balances, transaction details and financial...
4 Pages(1000 words)Essay

Finance Accounting

...Finance Accounting work Part DONONHUE LIMITED Profit an Loss Account For the Year Ended 31 December, 2007 Sales Revenue Less. Cost of Sales Gross Profit Reimbursements From Insurance Dividends from Investments Loss arising from ceasing a production line Political donation Distribution costs Salaries Directors' emoluments Rent and rates Hire of plant Travel and entertainment expenses Audit fee General expenses Plant and Machinery Depreciation Fixtures and Fittings Depreciation Building Depreciation Legal Fees Research Costs Net Income Interests Interim Dividends Final Dividends Unpaid Retained Earnings $ 215.25 1.875 205.475 105.25 157.5 205.45 16.75 15.875 10 173.5 245.925 55 75 75 250 $ 7645 (5208.25) 2436.75 50 7... true...
4 Pages(1000 words)Essay

Accounting & Finance shown as an expense in the profit and loss account None of the above Question 20 Which one of the following records is NOT a book of prime entry Question 20 answers Bank statements Cash book Journal Sales returns day book Question 21 Tom set up a business on 1 January. He bought fixed assets costing 53,000 and stock costing 6,600. He had financed these in advance of starting the business with private family loans totalling 25,000 and a business loan from a bank. On 31 December of the same year his net assets totalled 37,200. His net profit for the year was 21,100. Tom's drawings during the year were... Question 21 answers 1,300 8,900 16,100 18,500 Question 22 ...
4 Pages(1000 words)Research Paper

Finance: accounting

...Q One of the basic principles of financial decision making is to undertake an analysis of the cash flows of the firm because net earnings is not considered as an effective method of assessing the process of value creation. Accounting profit is subjective in nature due to the accrual principle. Different accounting policies can provide different estimates of earnings therefore accounting profit is not only an arbitrary figure but also subjective in nature. Accounting income can also be misleading because of the fact that it can distort the figures like Earnings per share (EPS) due to its subjectivity. A distorted EPS can lead to faulty decisions by the investors...
2 Pages(500 words)Essay


...Contents Executive Compensation Executive compensation is one of the most debated issues within the accounting and finance literature as it directly impacts the agency cost which an organization runs due to conflict of interest between management and the shareholders of the firm. There are various factors to which the executive compensation can be linked to including the company size and company profits. (Murphy, 1999). However there are other related issues also which must be taken into consideration while setting up the compensations for the executives. I believe in our case the most important factor in determining the bonus of the CEO should be linked to following two factors: 1) His or her achievement in reducing the costs... the tying...
3 Pages(750 words)Essay


...ACCOUNTING/FINANCE Introduction This paper aims to discuss a few of the many additional funding options available to an organization; in this case, ours. Issuance of new stock, private placement of bonds and public bond offering will be analyzed in detail. Furthermore, a discussion will be carried out about whether stock splits mean something or not. Additional Funding Options There are several options available to an organization for supporting itself financially. Three of the many are evaluated below. Issuance of New Stock ‘Issuance of stock’ is simply when shares are given out to investing people in the stock exchange – a market for shares. These generate funds for an organization, for the time being,...
2 Pages(500 words)Essay


...Finance/Accounting Paper on: A. FORM OF BUSINESS ORGANIZATION PREFERRED USING CERTAIN CRITERIA There are three principal forms of business organization: Sole Proprietorship, Partnership, and Corporation. Using the following criteria, one of these forms are the preferred ones for the reasons specified: a. Organizational requirements and cost. The simplest and least costly form of business organization is the sole proprietorship, while the corporation is the most complex and costly. b. In terms of liability of the owners, the corporate form, from the viewpoint of the stockholders, is the most preferred because his liability is limited to his investment. In the case of sole proprietorship and...
3 Pages(750 words)Essay

Accounting - finance

...=book_result& ct=result&resnum=4&ved=0CBUQ6AEwAzge#v=onepage&q=&f=false. Pizzey, A. (1989). Cost and Management Accounting: An Introduction for Students. London: Paul Chapman Publishing Ltd. Retrieved from: books?id=QAYsaQXik48C&printsec=frontcover#v=onepage&q=&f=false. Siciliano, G. (2003). Finance for Non-Financial Managers. New York: The McGraw – Hill Companies, Inc. Retrieved from: KirYlKS3ZygC&printsec=frontcover#v=onepage&q=&f=false.... to achieve our targets. This report that I am submitting shows why I believe this is the case. My report also contains some suggestions or recommendations on how our budgeting process can be revised to solve its problem and how we can...
6 Pages(1500 words)Essay

Finance accounting

...Running Head: Finance accounting Executive Summary The spectrum of accountancy is concerned with the preparation offinancial statements which are used for decision makers. Financial statements on various occasions can be measured on the basis of nominal monetary units or constant purchasing power units. The main reason for the existence of accounting records is to minimize or reduce the effect of principal-agent problem; its impact is reduced by measuring and close monitoring of the performance and reporting the results to parties concerned. Financial accounting is a discipline which has evolved over time, under special bodies who undertake the mandate...
12 Pages(3000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Finance and Accounting for MacLeish Nurseries for FREE!

Contact Us