You Have Recently Accepted a Position as a Manager with Athletic

question 134

Essay

You have recently accepted a position as a manager with Athletic Academy.At a recent managers meeting, the controller asked for input on how to make the budgeting process more effective.Specifically, the controller indicated that the employees did not seem to be committed to the budget during the previous period.Unfortunately, none of the managers reached their targeted sales projections for the previous period.
Required:
Explain to the other managers what method the company apparently used in the previous period and why the method created the lack of commitment.Also discuss flaws if the alternative approach to budgeting is used.

Identify the protective measures and potential losses associated with various positions in futures contracts (long and short).

Describe cross-hedging and its application in managing risks associated with interest rates and bond portfolios.

Differentiate between the types of futures contracts (e.g., commodity, financial) and their specific characteristics and uses.

Comprehend the role of the exchange and clearing corporation in mitigating credit risk and ensuring the integrity of futures markets.

---

Definitions:

Legal Title

Refers to the formal right of ownership of a property or asset.

Physical Count

The process of manually counting the actual inventory on hand at a certain period to verify the quantities listed in the accounting records.

Gross Profit Method

An inventory estimation technique that calculates the cost of goods sold based on gross margin.

Gross Profit

The financial metric representing the difference between revenue from sales and the cost of goods sold, before deducting overheads, payroll, taxation, and interest payments.