Question
The Print Shop department supports all of the printed needs of a large city in upstate New York. The Print Shop creates a budget based
The Print Shop department supports all of the printed needs of a large city in upstate New York. The Print Shop creates a budget based on forecast needs of the city and charges for their products on a materials + labor + overhead markup based on labor hours (think back to managerial or cost accounting). Their revenue from the city was $54,000 higher than the expected budget amount because their labor costs were lower than expected, they received unexpected special pricing from their paper vendor based on the New York State contract, and the citys departments bought more print than usual. Based on what you learned in this chapter, what issues do you see? Based on your knowledge of fund accounting learned so far, what should they do? Note: the answers to these two questions are to be accounting related, not product or business process related.
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