Tim and Tina Own an Independent Pet Grooming Business in Which

question 108

Essay

Tim and Tina own an independent pet grooming business in which employees are hired to groom the animals, take care of customer needs and clean the facility.Other area competitors offer the same services and pay their employees minimum wages.Tim and Tina have decided to pay employees R120.00/hour, and include unlimited services for the employee's animals and allow them to provide grooming for one guest of their choice each month.What could the grooming business gain from this payroll decision?

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Machinery and Equipment

Physical assets used in a business operation to produce goods or services, not including buildings or property.

Assessed Tax Valuation

The valuation placed on property by a public tax assessor for the purposes of taxation.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.