Software Associates Essay

1708 words - 7 pages

Assignment 1: Variance Analysis Report

In order to perform a variance analysis report Jenkins calculated the actual revenues and expenses and found the difference which was $296,610 in profits. Then Jenkins did the same with budgeted values and found the budgeted profits to be $606,350. The variance amount in turn is $309,960 under budget. Also, the variance amount for revenues is $32,100. This number is favorable due to the fact that they made more than what they had budgeted for. But on the contrary, the variance amount for expenses was $342,060, which was unfavorable because they spent far more than what they had budgeted for.

This information would not be sufficient in order to ...view middle of the document...

Jenkins found that Software Associates made a total of $278,100 when providing the extra amount of hours billed. This is favorable for Software Associates if the billing rate was $90 as expected; however the average rate per consultant amounted to $83.69.

Next, Jenkins determined the average billing rate variance by subtracting the actual price from the expected price. She then multiplied the difference in price and the quantity of work done. Jenkins found that they had a deficit of $246,090. This is unfavorable because Software Associates is losing money due to the actual rate drop from $90 to $83.69.

When Jenkins compared the variance of both quantity of hours and hourly rate, this gave her the total revenue variance of $32,100. The total revenue variance is also the difference between the actual revenue and expected revenue. Over all, it is favorable that Software Associates created more revenue. Jenkins then determined whether or not the additional revenue would cover the additional costs incurred for the excess consultants.

Jenkins used the same method for consultant expenses. By subtracting the actual number of hours supplied (50,850) from the budgeted number of hours supplied (47,250) and multiplying the expected costs, $37, Jenkins found a cost of $133,200. $133,200 is the amount they paid over the expected cost due to the increase in actual labor. Next, Jenkins took the actual cost of $39.90 and subtracted the expected cost of $37 then multiplied the actual amount of labor hours, 50,850. This amounted to $147,465. This is the extra amount Software Associates paid due to the labor cost change. The two numbers, $133,200 and $147,465, equal $280,800. The difference in consultant salaries cost from actual to expect cost is $280,800. Overall operating expense is broken down into two categories, actual and expected. Subtract the actual operating expense, $938,560, from the expected operating expense of $877,300 to get the variance of $61,260. This amount is unfavorable. Jenkins found the total expense variance by completing the same equation. She subtracted the expected total expense from the actual total expense. The total expense variance was found to be $342,060. The extra hours worked created more costs than the extra revenue acquired.

This puts the company in an awful position. The budget was not planned out very well. The price of the billed labor decreased while more labor was done and less was billed for. This is an equation for disaster as you can see. More planning must be taken when figuring out a budget and Software Associates must stick strictly to the budget for reasons like this. Numbers can add up quickly.

Assignment 3: Expense Analysis: Spending and Volume Variance Analysis of Operating Expenses

Jenkins then needed to analyze the expense analysis. Many of the expenses for Software Associates were not entirely fixed costs or variable costs. Rather, many of the expenses were...

Other Papers Like Software Associates

Function Point Analysis

3989 words - 16 pages was formally known as the UFPUG (UK Function Point User Group)). COSMIC-FFP (Full Function Points) was introduced in 1997, but is not as yet widely used. It is claimed to be an improvement on all previous functional size measurement methods. Software Estimating FPA (version 1.4) Author K S Banga This document is Copyright © of KSB Associates Limited. Page 2 4 The advantages of using FPA The main benefits of using FPA over other measures of

Prescriptive Essay

5339 words - 22 pages digunakan untuk pengembangan perangkat lunak, terutama jika merupakan bagian sistem proyek rekayasa yang lebih besar. • MODEL PROSES KENAIKAN (INCREMENT) Terdapat banyak situasi dimana kebutuhan awal dari software itu telah di definisikan, tetapi seluruh lingkup dari usaha pembangunan diluar alami sebuah proses yang linear. dengan kata lain, terdapat suatu hal yang memaksa untuk menyediakan suatu set terbatas dari fungsi software kepada pengguna

Acceptable Use Policy

538 words - 3 pages . Software Access Procedure Software needed, in addition to the Microsoft Office suite of products, must be authorized by your supervisor and downloaded by the IT department. If you need access to software, not currently on the Company network, talk with your supervisor and consult with the IT department. Internet Usage Internet use, on Company time, is authorized to conduct Company business only. Internet use brings the possibility of breaches to the

Midsouth Chamber of Commerce

2046 words - 9 pages unable to identify or resolve the information system problems. The poor performing UNITRAK software crisis opened the opportunity for Mr. Gramen to convince the MSCC executive committee to move to new IBM RS/6000 hardware. New software was additionally contracted through IBM value-added reseller Data Management Associates (DMA). The suite of software consists of Association Plus (a DMA custom software package), Progress (a relational

S.G.Cowen: New Recruits

2373 words - 10 pages 1. What is your evaluation of the hiring process used by S.G.Cowen? S.G.Cowen uses the same pattern as the majority of Wall Street companies by making hiring decisions during the early winter and spring of each year so that the new associates can begin in the summer. Besides a full hiring process, the company selects some associates that already worked or are still working to S.G.Cowen utilising, therefore, internal sources of recruitment

Os Comparision

4790 words - 20 pages The Economics of Open Source Software Development Jiirgen Bitzer and Philipp J. H. Srhroder (Editurs) O 2006 Published by Elsevier B.V. Linux vs. Windows: A Comparison of Application and Platform Innovation Incentives for Open Source and Proprietary Software Platforms Nicholas Economides and Evangelos Katsamakas ABSTRACT The chapter analyzes and compares the investment incentives of platform and application developers for Linux and

Cherns Case Chapter 5

1297 words - 6 pages Ryan Chern. The company employs 19,000 employees (full and part time) across 28 states and has 140 stores mainly in the Eastern and Midwestern United States. Chern’s was built around a foundation of hiring sales associates who go above and beyond to ensure they provide great service by offering quality merchandise to its customers. In order to remain competitive, Chern’s must find ways to be creative and offer incentives to retain existing staff

A Letter from Prison

1663 words - 7 pages 1. How serious were Stephen Richards’ actions? Why? Stephen Richards’s actions were extremely serious; manipulating Computer Associates’ quarter end cutoff to align CA’s reported financial results with market expectations by violating the generally accepted accounting principles and their financial reporting responsibilities. According to the U.S. Securities and Exchange Commission, Richards with other CA executives extended CA’s fiscal

New Employee Training

918 words - 4 pages New Employee Training John Doe HRM/240 August 28, 2011 Diane Blankname New Employee Training Companies seeking new employees for a position as a computer support specialist have different requirements. Some organizations prefer employees to obtain up-to-date certifications, but some organizations prefer for new employees to have an associates or bachelor’s degree (JobBank USA, 2010). Although the employee may meet the educational

Changing Trends in It

3711 words - 15 pages tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide

Learning from Amazon's Cuture of Metrics

661 words - 3 pages , videos, electronics, computers, software, apparel & accessories, shoes, jewelry ... Yahoo results: Online shopping from the earth's biggest selection of books, magazines, music, DVDs, videos, electronics, computers, software, apparel & accessories, shoes, jewelry ... Google result: Online retailer of books, movies, music and games along with electronics, toys, apparel, sports, tools, groceries and general home and garden items. Region

Related Essays

Software Associates Essay

1316 words - 6 pages G.G. TOYS I. STATEMENT OF THE PROBLEM Due to increasing production costs, what must G.G. Toys (the company) do to address the rapid decline in the last few years in margins on their popular Geoffrey doll products to less than 10%, far below their historical 25% margins? II. OBJECTIVES * To find out the cause of rising production costs. * To assess whether using the current costs system is viable. * To identify

Marketing Plan Essay

878 words - 4 pages Marketing Research Information Resources: Behavior Scan Jocelyn Garcia Keiser University MBA 531 Dr. Seay 3/14/12 Introduction Once a marketing plan has been created and instituted, marketing research must obtain information that helps in the decision making. It may be best to observe the five purposes of the research process. This paper will explore J.D. Power and Associates a company that provides a quantitative

Proposal To Implement 1st Providers Choice As/Pc® Practice Management Software System

1737 words - 7 pages . References Advance Data Systems (09 June 2008) Medics Elite agreement. Retrieved July 8, 2010 from J. Schlesinger and Associates, PA. 1st Providers Choice. (2010). Practice management software and electronic medical records. Retrieved July 1, 2010 from Glaser, J. (2009 July). Strategies for ensuring an IT project delivers value. Healthcare Financial Management. Retrieved July 10, 2010

Est1 Task 1 Essay

4083 words - 17 pages covered in this manual. Standards of fairness and good business practice apply in all circumstances. Violations of laws, rules, regulations and firm policies can result in disciplinary or regulatory sanctions against an associate, as well as fines or responsibility for consequential losses resulting from the violation. References to "associate" or "associates" in this manual include general principals and financial advisors unless otherwise