Lutter Westhuring the budgets a procultorer Making but was such an important goal that the only two managers who had ested the budget 20X7 ( 55 and fad been my feed. This cand mayweations et con The Poetie Capport Wing hurtigt for 20%? me be the 2007) Meg Hanger Cormance the How 65400 Nowy How comed became the market le rapporto con mucha fatahes would be be the 30x/veleprom wou hy en 52 36 and 30 35 per pond Thing inted that is commited and there were lowance to be genedin the wall Hered that perhap ang ulo cothaithe achie more Requirement budget for this Wedge ity cebule ng mundo 20x Baget Vulate cu Facts P Enter any cumberintettel and then como lo ne pot question Type here to search o ED . > 28 AO640 60 What die man does Hollingsheadace in preparing this dat? The optimistic budged that Hollinghead propred bove the profit goals are Holingsod Roquirement 2. What problem(s) do you see in the budgeting process Westchester Mining? O A Lower level management is not being over the opportunity participate in the waiting of budgetwy target OB Draconian measures Carmination of employment are being used when a budget to not met even if the show is small cente explanations for the shortfall at given OC Top management is setting an arbitrary target budget without regard to whether the target can be achieved 00. Al of the above Regulation and had wywinien match 2 pounds, and the world that we bygewe than 100 dinge was cancemed to hached the correderation which the directe daad by coherent and we wel heel w War? Which Elundige depreciates of was wil have been in the Where there may Then a major focus for managers. Making budget was such an important goal that vary when setting their 20X8 budgets. The Pipe Line Copper Division of Wes Erom Howard that contained the following: - X Data Table $ Sales, 2.1 million pounds @ $0.90/pound Variable costs 1,890,000 820,000 440,000 Fixed costs, primarily depreciation 5.4 la to a $ 630,000 Pretax profit Print Done tion W 99- Chp plications for Mgmnt 2 of 2 (0 complete) d as made budgets a major focus for managers Making budget was such an important goal that the only two manas Requirements Requirements 1. Prepare a budget for Hollingshead to submit to headquarters. What dilemmas does Hollingshead face in preparing this budget? 2. What problems do you see in the budgeting process at Westchester Mining? 3. Suppose Hollingshead submitted a budget showing a 5645,400 profit. It is now late in 20x8, and she has had a good year. Despite an industry-wide decline in sales, Pipe Line Copper's sales matched last year's 2.1 million pounds, and the average price per pound was $0.895, nearly at last year's level and well above that forecast Variable costs were cut by 2% through extensive efforts. Still, profit projections were more than $9,000 below budget. Hollingshead was concerned for her job so she approached the controller and requested that depreciation schedules be changed. By extending the lives of some equipment for two years, depreciation in 20X8 would be reduced by $18,000. Estimating the economic lives of equipment is difficult, and it would be hard to prove that the old lives were better than the new proposed lives. What should the controller do? What ethical issues does this proposal raise? fort juif jou pl Print Done the next question O *99- hp Lutter Westhuring the budgets a procultorer Making but was such an important goal that the only two managers who had ested the budget 20X7 ( 55 and fad been my feed. This cand mayweations et con The Poetie Capport Wing hurtigt for 20%? me be the 2007) Meg Hanger Cormance the How 65400 Nowy How comed became the market le rapporto con mucha fatahes would be be the 30x/veleprom wou hy en 52 36 and 30 35 per pond Thing inted that is commited and there were lowance to be genedin the wall Hered that perhap ang ulo cothaithe achie more Requirement budget for this Wedge ity cebule ng mundo 20x Baget Vulate cu Facts P Enter any cumberintettel and then como lo ne pot question Type here to search o ED . > 28 AO640 60 What die man does Hollingsheadace in preparing this dat? The optimistic budged that Hollinghead propred bove the profit goals are Holingsod Roquirement 2. What problem(s) do you see in the budgeting process Westchester Mining? O A Lower level management is not being over the opportunity participate in the waiting of budgetwy target OB Draconian measures Carmination of employment are being used when a budget to not met even if the show is small cente explanations for the shortfall at given OC Top management is setting an arbitrary target budget without regard to whether the target can be achieved 00. Al of the above Regulation and had wywinien match 2 pounds, and the world that we bygewe than 100 dinge was cancemed to hached the correderation which the directe daad by coherent and we wel heel w War? Which Elundige depreciates of was wil have been in the Where there may Then a major focus for managers. Making budget was such an important goal that vary when setting their 20X8 budgets. The Pipe Line Copper Division of Wes Erom Howard that contained the following: - X Data Table $ Sales, 2.1 million pounds @ $0.90/pound Variable costs 1,890,000 820,000 440,000 Fixed costs, primarily depreciation 5.4 la to a $ 630,000 Pretax profit Print Done tion W 99- Chp plications for Mgmnt 2 of 2 (0 complete) d as made budgets a major focus for managers Making budget was such an important goal that the only two manas Requirements Requirements 1. Prepare a budget for Hollingshead to submit to headquarters. What dilemmas does Hollingshead face in preparing this budget? 2. What problems do you see in the budgeting process at Westchester Mining? 3. Suppose Hollingshead submitted a budget showing a 5645,400 profit. It is now late in 20x8, and she has had a good year. Despite an industry-wide decline in sales, Pipe Line Copper's sales matched last year's 2.1 million pounds, and the average price per pound was $0.895, nearly at last year's level and well above that forecast Variable costs were cut by 2% through extensive efforts. Still, profit projections were more than $9,000 below budget. Hollingshead was concerned for her job so she approached the controller and requested that depreciation schedules be changed. By extending the lives of some equipment for two years, depreciation in 20X8 would be reduced by $18,000. Estimating the economic lives of equipment is difficult, and it would be hard to prove that the old lives were better than the new proposed lives. What should the controller do? What ethical issues does this proposal raise? fort juif jou pl Print Done the next question O *99- hp