Assignment on Accounting Controllership

Added on - 29 Apr 2020

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AccountingIf management decides to implement a reduction in workforce, what types of reportsmight they use to make the decision of where to cut? What issues might arise due to thisreduction?The type of report needed to implement a reduction in the workforce will consist of the needforthe human resources, availability of the human resources and compensation report. Whenan employerimplementsa workforce through the process of layoffs, reduction in force,rightsizing, etc then it will lead to a global economic scenario that will lead to higher joblosses and widespread unemployment will be noticed (Davies &Crawford, 2012). It willimpact the staff members along with the department.Management has told you that they want to reduce total costs of operations and SG&Aby 10%. What types of reports would you look at to make these decisions?The selling, general and administrative expenses are projected on the income statement andthe reduction in such expenses by 10% can be properly evaluated with the help of projectedprofit and loss statement and the sales budget. Moreover, the report on expenditure willsketch a clear idea in terms of decision making. The projected expenditure statement willindicate whether the business is operating effectively and will even provide a brief ideawhether the business will be affected by the reduction or not. Such reports will aid in betterdecision making (Davies &Crawford, 2012). The SG&A expenses will be ascertained toevaluate whether the cash flow is managed in a smooth manner.Define the term “tax strategy." Name at least two common tax strategies.Tax strategy can be defined as the wayofreducing the income tax amount that is owned byan individual or business by taking benefit of the different tax credit that is available. The twocommon tax strategies are increasing deduction and taking benefit of the tax credits (Choi &Meek, 2011).What is the difference between book and tax accounting? Does taxable income alwaysequal bookincome? Why or why not?Tax accounting deals with the method of accounting that is concerned with taxes instead ofthe financial statements. The Internal Revenue code governs tax accounting and tames therules that companies, as well as individualsneedto follow during the preparation of the2
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