The scenario is the CFO has come up with four
questions related to the budget developed by your predecessor. Your job is to
review his questions related to the budgeted numbers and identify what
assumptions she may have made in developing the budget.
Question:
She had estimated wages of $1,150,000 for the department, but last year wages were only $1,000,000. What are the reasons she might have budgeted such a large increase?
Task:
Select ALL of the assumptions that could contribute to the estimated $150,000 increase in wages in the budget.
1.
She was going to give her staff an average 4% pay raise
2.
She was planning on firing her current System Administrator and replace her with a more experienced and higher salaried System Administrator
3.
She anticipated that employees would travel more
4.
She had planned on hiring an entirely new position - web developer
The scenario is the CFO has come up with four
questions related to the budget developed by your predecessor. Your job is to
review his questions related to the budgeted numbers and identify what
assumptions she may have made in developing the budget.
Question:
She had estimated wages of $1,150,000 for the department, but last year wages were only $1,000,000. What are the reasons she might have budgeted such a large increase?
Task:
Select ALL of the assumptions that could contribute to the estimated $150,000 increase in wages in the budget.
| 1. | She was going to give her staff an average 4% pay raise | |
| 2. | She was planning on firing her current System Administrator and replace her with a more experienced and higher salaried System Administrator | |
| 3. | She anticipated that employees would travel more | |
| 4. | She had planned on hiring an entirely new position - web developer |
