Question 1
Customer service is a semi-variable cost.
Customers who share their negative feedback or customer experiences online on social Medias reach a wider audience daily. Therefore, it is important that business to satisfy their customers or keep them happy. According to GWU (n.d), an average business does not hear from about 96% of their dissatisfied or unhappy customers. Moreover, for every received complaint, there are about 24 people with problems that are unvoiced, of which six are serious. More than 90% who are unhappy or dissatisfied with the services will not come back or buy again (GWU. n.d). Out of the customers who complain, about 50%-70% of them will come back or do nosiness if the issue is addressed. Moreover, if the matter is resolved quickly, 95% will return. Averagely a customer who has a complaint tells 9-10 people, and about 13% will tell others more than 20. However, those who had a complaint but was resolved tell 5 people (GWU, n.d).
Question 2
Direct costs are attributed directly to coupon discounts in Groupon and YouTube and are involved directly in the expenses. Indirect costs are not attributed directly to an objects costs. They are typically allocated on some basis to a cost of the coupon of Groupon and YouTube (GroupFocus, 2015).
The costing system for Groupon is referred to as Selling, General and Admin (SGA) expense that includes both direct and indirect costs with all the company’s administrative and general expenses of the company. For example, advertising, personal cost, communication cost, rent and other parts of SGA (GroupFocus, 2015).
The traditional cost management system at a manufacturing company involves both direct costs which includes the costs of labor, materials, and equipment. However, the indirect costs are also involved but benefit many projects ().
Question 3
Customer Lifetime Value (CLV) is the value or net profit prediction a business will get from their relationship with a customer (Kumar, 2008). CLV is important because it encourages businesses to shift their focus from the profits they get quarterly to the long term health of their relationships with their customers. Small restaurants will benefit from analyzing CLV if they establish a long-term relationship with their clients
Question 4
The purpose of sustainability reporting is to report an organization’s economic, social and environmental impacts of its everyday activities (White & Business Expert Press, 2009). A community-based organizations that deal with environmental conservation can benefit from sustainability reporting. These organizations are good candidates because they have an environmental impact by conserving environment, economic impact by creating employment to local people. The social impact is by engaging in corporate social activities of environmental cleanups where they engage the residents and bring people together
Question 5
The five archetypes of bad budgeting behavior include:
I. Sandbagger- presents a business plan that is less ambitious and is exceeding expectations. The board of directors of the company or the proprietors should demand feasibility of the budget with workable facts from the sandbagger
II. Magician- in business they cover up faults by leaving outs facts that are uncomfortable conveniently. The proprietors should sanction a magician manager for covering some facts that might be detrimental to the business
III. The loan agent- they believe and contend that the corporate budget cannot conform to their business because it is presumed unique character. The loan agent should be advised to bring a budget that is within the financial capability of the company
IV. The visionary- these managers lack numbers and often appeal to emotions. They shod be encouraged and supported as they can take a company to a higher levels
V. The hostage takers- these claim that if they are given a significant proportion of the corporate capital available, they can deliver immediate significance improvement in performance. Their track record should be evaluated before business investing in their proposals since it might be just a mere exaggerations (MIT, n.d)
yes, I budgeted without knowing the prics of different items in the supermarket. I was shocked when my budget was below the required items I needed to buy.
References
George Washington University (n.d.). The Cost Of An Dissatisfied Customer.Retrieved February 17, 2015, from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB0QFjAA&url=http://www.gwu.edu/~umpleby/mgt201/201-3%28CostofQ%29.ppt&ei=havjVIPVBsHcUoynhNAD&usg=AFQjCNGZty_yptoHj72DRHl1iXtB2VFoeA&sig2=EUQDJe8nqTjHVmEbNiXTMA&bvm=bv.85970519,d.ZGU
GroupFocus. (2015). Groupon Inc (GRPN) Selling, General, & Admin. Expense. (n.d.). Retrieved February 17, 2015, from http://www.gurufocus.com/term/SGA/GRPN/Selling%2C+General%2C+%26+Admin.+Expense/Groupon+Inc
Kumar, V. (2008). Customer lifetime value: The path to profitability. Boston: now Publishers, Inc.
MIT Sloan Management Review. (n.d.). Games Managers Play at Budget Time. Retrieved February 18, 2015, from http://sloanreview.mit.edu/article/games-managers-play-at-budget-time/
White, G. B., & Business Expert Press. (2009). Sustainability reporting: Managing for wealth and corporate health. New York, N.Y.] (222 East 46th Street, New York, NY 10017: Business Expert Press.
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