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page no 82, May I know why did they take additional training cost only in q3 and q4 ? doesn’t quarter 1 and quarter 2 exceeds the target $180? and how those 2 ,2.4 came from
?I am referring to section B revised forecast working !I am sorry if question is really stupid I asked.I seriously couldn’t figure it out 🙁
There will be additional staff training costs in quarters 1 and 2 only of $500 per quarter per the question, and these have been shown in the answer.
I think you are referring to the additional cost of the trainers (teachers). This will only occur in quarter 3 and 4 because it is only in those quarters that they will be running the extra courses. Given that the numbers on the courses will be higher by 20%, the cost of the trainers will be higher by 20% as well.
I still didn’t get it.The teaching working is shown $200 * teaching days .Every quarter the trainer cost has exceeded the target to 200 and also its said the manager pays trainer after a month 50% of invoice .Shouldn’t we reflect the 50% delayed payment on quarter 3 and quarter 4 ..
50% of quarter 2 paid in quarter 3 200*36 *50% and another 50% from40*200… :/The question asks for profit forecasts – not for cash flow forecasts.
In profit statements expenses are charged in the period in which they are incurred, regardless of when they are actually paid.
Could you please explain why, in the revised forecasts, additional training costs of 2000 and 2400 are added in Q3 And Q4 respectively & Also why additional room hire costs of 1000 and 1200 are added in Q3 And Q4 respectively.
Trainer costs:
Given that sales increase by 20% and they are keeping the same class sizes, they will need to spend an extra 20% on trainers
Room hire:
Same as above. 20% more training means 20% more room hire.Staff training:
The question specifically says that staff training costing $500 is needed in quarters 1 and 2.Software:
The question specifically says that demo programs are bought for $1,800 in qua
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