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How should Thomas Winston respond to Sasha Gomez's request to expense the advanced payments for convention-related costs against July's budget? The director of marketing for
How should Thomas Winston respond to Sasha Gomez's request to expense the advanced payments for convention-related costs against July's budget?
The director of marketing for TBM Inc Sasha Gomez, had the following discussion with the company controller Thomas Winston on July 26 of the current year Sasha Thomas it looks like I'm going to spend much less than indicated on my July budget Thomas I'm glad to hear it Sasha Well, I'm not so sure it's good news i'm concerned that the president will see that I'm under budget and reduce my budget in the future the only reason that I look good is that we ve delayed an advertising campaign Once the campaign is in September. I'm sure my actual expenditures wil ge up You see, we are also having our sales convention in September. Having the advertising campaign and the convention at the same time is going to kilmy September numbers Thomas I don't think that's anything to worry about we all expect some variation in actual spending month to month, Whats really important is staying within the budgeted targets for the year. Done that look as if it's going to be a problem? Sasha I don't think so, but just the same, I'd like to be on the sate side Thomas What do you mean? Sasha Well, this is what I'd like to do. I want to pay the convention-related costs in advance this month pay the hotel for room and convention space and purchase the airline tickets in advance this way. I can charge all these expenditures to July's budget. This would cause my actual expenses to come close to budget for July Moreover, when the bly advertising campaign hits in September! won't have to worry about expenditures for the convention on my September budget as well. The convention costs will leady be paid. Thus, my September expenses should be pretty close to budget Thomas I can't tell you when to make your convention purchases, but im not too sure that September bems should be expensed in Julys budget Sasha What's the problem? It looks like no harm, no fool to me. I can see that there's anything wrong with this-It's just smart management REQUIREMENT. Write a brief (one page) memo answering the following How should Thomas Winston respond to Sasha Gomez's request to expense the advanced payments for convention-related costs against July's budget Step by Step Solution
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