- CVP Analysis
Read Case Study 2 at the end of Chapter 15, “Making the Business Decision (Breaking Even),” and answer the following questions. Respond substantively to at least two of your classmates’ postings.
a. Do you think Ms. Chen should open the pastry shop, and what advice would you give her?
b. What is her break-even point?
- Budgetary Control
Read Case Study 4 at the end of Chapter 16, “Evaluating a Company’s Budget Procedures,” and answer the following questions. Respond substantively to at least two of your classmates’ postings.
a. Identify the problems that exist in the Shoshone Hotel’s budgetary control system, and explain how the problems are likely to reduce the effectiveness of the system.
b. Explain how Shoshone Hotel’s budgetary control system could be revised to improve its effectiveness.
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