Southern New Hampshire University
Module Eight Homework
Lisa L Stiles
If management decides to implement a reduction in workforce, what types of reports might they use to make the decision of where to cut? What issues might arise due to this reduction?
If management decided to implement a reduction in the workforce, they would consider the idea of employee cost rollup and employee cost rollup with overhead reports. These two reports give the
and which employees generate revenue so that they may cut costs effectively and efficiently. Many issues can arise to a workforce reduction, one of those costs is the company ends ups paying more money in short-term expenses. Some expenses include accrued vacations, stock grant acceleration, severance packages, unemployment insurance, and potential lawsuits.
Management has told you that they want to reduce total costs of operations and SG&A by 10ffi. What types of reports would you look at to make these decisions?
My first action would be to look at the company's spend analysis and work reduction reports. The spend analysis report will show how much the company is spending on their materials and how much the suppliers they are using are charging them. When looking at the workforce reduction report, I will see how much each of the company's employees' costs and how much production the company is getting from them.
Define the term "tax strategy." Name at least two common tax strategies.
A tax strategy is a plan of action for reducing taxes, regardless of the business or investment situation. It optimizes the way business income and spending is structured. (Wealth Ability, 2020) Two tax strategies that a controller will use to help the company reduce their tax burdens or obtaining tax-exempt income and using all available tax credits.
Southern New Hampshire University
What is the difference between book and tax accounting? Does taxable income always equal book income? Why or why not?
Three main differences between book and tax accounting are 1.) Income and expenses are intentionally excluded for tax purposes. 2) Differences resulting from time recognition when income or losses may be recognized. 3.) Cost base differences (Bragg,2011). Taxable income sometimes does not equal book income, for there might be different deductions or expense allowances.
References:
Bragg, Steven. (2011). The Controller's Function: The Work of the Managerial Accountant (4th edition). J Wiley and Sons
https://wealthability.com/tax-strategy/ Wheelwright, Tom, CPA