7.10

Payroll Ructuates between 35 and 48 perelU 34 percent of sales. The graph show the last three years of supplies and lines in the graph divide the fiscal years. For financial and budgeting purpoer calendaryear Jianuary to December) fiscal year. Besides focusing on consolidated firm-wide spending, you prepare disaggregated arcch. payroll, the vetied the one shown previously, but at the cost and profit center levels. The overall patterns obre a. Analyze the behavior over time of supplies expenditures for IT. What is the likely graphs in the consolidated graphs are repeated in general in the disaggregated graophs. for the observed patterns in supplies? reason b. Given your analysis in part (a) above, what corrective action might you consider proposing? What are its costs and benefits? AIP 7.10 Adjusting Budgets and Effect on Behavior LO 1, 2, 3, 5 Panarude Airfreight is an international airfreight hauler with over 75 jet aircraft operatin the Pacific Rim and North America. The firm is headquartered in Melbourne, Australia and is organized into five geographic areas: Australia, Japan, Korea, Indonesia, and North Ameri Supporing these areas are several centralized, corporate function services (cost center) human resources, finance and administration, fleet acquisition and maintenance, and information lechnology IT). Each responsibility center has a budget, negotiated at the beginning of the year with the vice president of finance. Any unspent funds at the end of the year do not carry over to the next fiscal year. The firm is on a Januaryto-December fiscal year