No.17: what does the question mean by 'require to cap expenses at 15% above budget'?, why does that tell us he doesn't need to inform the partners of the increase in cost is not higher than the 15% budget variance contingency agreed?
Also, No.53: why using short-term debt to reduce an existing account payable won't increase CFO?
should short-term debt be classified into CFF?作者: Mechanic 时间: 2011-7-11 18:22
on # 17, cap means he cannot spend beyond 15%. Therefore, once he reached 50% mark, does he have a duty to inform anyone?? - the answer is NO -
am not sure abt 53 -
Good Luck!作者: Micholien 时间: 2011-7-11 18:22
question 17 - Basically he has to inform them if the costs go over 15 percent, since the lighting fixtures were only 5 percent of total costs, the 50 percent increase is immaterial to report to the bosses.
