Budgetary Control
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It may of course be found that some of the expenses to be incurred during the coming year are expected to result in increased business during future years. If this be true, there may be some excuse for the unprofitable showing, but a careful examination should be made to ascertain if this is the situation.
Non-operating Expense It is estimated that there will be a large increase in the non-operating expenses for the year. This increase is probably due to the anticipated increase in interest res...ult- ing from the additional bonds and notes which are to be issued, and the increase in the amount of the mortgages payable.
Net Income The estimated net income for 1922 is approximately one-fourth of the net income for the year previous. This indicates that the proposed program for the year is not a proper one, since a 50 per cent increase in volume of busi- ness leads to a 75 per cent decrease in net income.
Relation of Estimated Balance Sheet to Estimated Statement of Profit and Loss If the comparative balance sheet given in Chapter XXI is studied in connection with the comparative state- Digitized by Microsoft® 366 BUDGETARY CONTROL ment of profit and loss shown in this chapter, a few signifi- cant indications are shown : 1.
What to read after Budgetary Control?
You can find similar books in the "Read Also" column, or choose other free books by Mckinsey, James Oscar, 1889-1937 to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
It may of course be found that some of the expenses to be incurred during the coming year are expected to result in increased business during future years. If this be true, there may be some excuse for the unprofitable showing, but a careful examination should be made to ascertain if this is the situation.
Non-operating Expense It is estimated that there will be a large increase in the non-operating expenses for the year. This increase is probably due to the anticipated increase in interest res...ult- ing from the additional bonds and notes which are to be issued, and the increase in the amount of the mortgages payable.
Net Income The estimated net income for 1922 is approximately one-fourth of the net income for the year previous. This indicates that the proposed program for the year is not a proper one, since a 50 per cent increase in volume of busi- ness leads to a 75 per cent decrease in net income.
Relation of Estimated Balance Sheet to Estimated Statement of Profit and Loss If the comparative balance sheet given in Chapter XXI is studied in connection with the comparative state- Digitized by Microsoft® 366 BUDGETARY CONTROL ment of profit and loss shown in this chapter, a few signifi- cant indications are shown : 1.
What to read after Budgetary Control?
You can find similar books in the "Read Also" column, or choose other free books by Mckinsey, James Oscar, 1889-1937 to read onlineMoreLess
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