LS
Answered
In September 2016 the management of Rye Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1. Expected Sales October $1,500,000 November 2,100,000 December 2,700,000\begin{array} { l r } \text { October } & \$ 1,500,000 \\\text { November } & 2,100,000 \\\text { December } & 2,700,000\end{array} October November December $1,500,0002,100,0002,700,000
2. Cost of goods sold is expected to be 70% of sales.
3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.
On Jun 02, 2024
October November $1,500,000×70%=$1,050,000$2,100,000×70%=$1,470,000$1,470,000×20%=$294,000$2,700,000×70%×20%=$378,000$1,050,000×20%=$210,000\begin{array}{ll}\text { October }&\text { November }\\\$ 1,500,000 \times 70 \%=\$ 1,050,000 & \$ 2,100,000 \times 70 \%=\$ 1,470,000 \\\$ 1,470,000 \times 20 \%=\$ 294,000 & \$ 2,700,000 \times 70 \% \times 20 \%=\$ 378,000\\\$ 1,050,000 \times 20 \%=\$ 210,000 \end{array} October $1,500,000×70%=$1,050,000$1,470,000×20%=$294,000$1,050,000×20%=$210,000 November $2,100,000×70%=$1,470,000$2,700,000×70%×20%=$378,000
LS
Answered
What is skill-based pay? What are its advantages and disadvantages?
On May 03, 2024
Skill-based pay systems are pay structures that set pay according to the employees' level of skill or knowledge and what they are capable of doing. Skill-based pay is desirable in situations where employees need to learn more skills and become more flexible in the jobs they perform, particularly in environments where the technology is changing.
Skill-based pay has its advantages. It helps organizations become more flexible and innovative. It encourages a climate of learning and adaptability. It helps employees use their knowledge and ideas more productively. It gives employees a broader view of how the organization functions.
Skill-based pay also has its disadvantages. It rewards employees for acquiring skills, but does not provide a way to ensure that employees use their new skills, resulting in the organization paying employees for learning skills that the employer is not benefiting from. Additionally, it does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. Finally, gathering market data about skill-based pay is difficult because most wage and salary surveys are job-based.