Southern New Hampshire University
Module Eight Homework
If management decides to implement a reduc on in workforce, what types of
reports might they use to make the decision of where to cut? What issues might
arise due to this reduc on?
The management team of the organization should run a report that looks at
employee cost. Then, if the organization should make the decision to layoff
part of its workforce, which could involve in the organization paying out severance packages, which would ultimately have an adverse effect on the organization. Additional payouts such as unused accrued vacation time,
personal time, sick time, paying out stocks (if they have stock options), even more unemployment insurance, and of course potential litigation. An
alternative that may have a more positive outcome would be enforcing a no overtime policy or consider doing a organizational wide pay cut for all employees could have a much better reaction.
Management has told you that they want to reduce total costs of opera ons and
SG&A by 10%. What types of reports would you look at to make these decisions?
The first thing that I would do is go a complete analysis of the organization's work reduction and expenses reports. This will give me an idea of how well the
organization manages their spending on the materials that are needed in order to complete each job, as well as show me how much suppliers are charging the organization for the needed materials. The second report, which is the work reduction report will show how much production the organization is getting out of each employee and it will show the organizations cost of each employee.
De ne the term "tax strategy." Name at least two common tax strategies.
A tax strategy is a plan that is put in place in order to minimize the amount of cash that is being paid out for taxes (Wheelwright, 2011). Where are five commonly used tax strategies that are used:
1. Accelerating Deductions
Southern New Hampshire University 2. Taking All Available Tax Credits 3. Avoiding Non-Allowable Expenses 4. Increasing Tax Deferrals 5. Obtaining Tax-Exempt Income
What is the di erence between book and tax accoun ng? Does taxable income
always equal book income? Why or why not?
There are three main differences between book accounting and tax accounting.
1. In regard to tax purposes, both income and expenses are excluded deliberately (Bragg, 2011). 2. Differences resulting from time recognition when income ir loss may be recognized (Bragg, 2011). 3. Cost base differences (Bragg, 2011).
No, taxable income does not always equal book income, this is due to possible differences with either deductions or expense allowances that maybe applicable.
Reference
Bragg, Steven (2011). The Controller's Function: The Work of Managerial Accountant (4th ed.) J. Wiley & Sons.
Wheelwright, Tom (2011). http:wealthability.com/tax-strategy