I am struggling with how to answer this. It seems not enough information is given so it is really hard to agree or to disagree. (this is uni statistics)
Assume you are the Store Manager for Coles in Wagga at the beginning of December 2012. An accountant
in head offce has compared the monthly sales figures of 2012 with the average monthly sales figure of 2011.
Out of the 11 months in 2012 so far, only 5 have been above the 2011 monthly average. The accountant
has therefore recommended that the number of casual staff should be reduced for December in your store,
in order to make the net profit for 2012 be similar to 2011.
The Finance Manager has asked you to respond to the accountant's recommendation. Do you agree or
disagree?
You're right. There is not enough information. Were the other 6 months equal to or less than monthly sales for 2011?
Need to figure the monthly average for 2011 to compare with 2012. If 2012 is is significantly lower, then you might want to consider the recommendation. However, if the 5 above average months were the last months of the year, it might be indicating an upturn. In that case, you might want to keep the staff.
this is pretty much what i thought.
and also being december with xmas shopping etc...sales should usually be high making a profit also...??
so many things not given in the question that really would determine and agree or a disagree.
Thanks, wanted to make sure i was on the right track.
To answer this question, it is important to consider the given information and think critically about the situation. Here's how you can approach it:
1. Understand the context: You are the Store Manager for Coles in Wagga in December 2012. The accountant in the head office has compared the monthly sales figures of 2012 with the average monthly sales figure of 2011.
2. Analyze the sales figures: The information states that out of the 11 months in 2012 so far, only 5 have been above the 2011 monthly average. This implies that 6 months had sales figures below the 2011 monthly average.
3. Consider the accountant's recommendation: The accountant recommends reducing the number of casual staff for December to make the net profit for 2012 similar to 2011.
4. Evaluate the situation: Given the information provided, it is unclear how the reduction in casual staff would impact the sales figures and net profit. Are the lower sales figures due to external factors such as economic conditions or internal factors such as poor staffing or marketing strategies? It is important to determine the cause before deciding on the appropriate action.
5. Gather additional information and insights: As the Store Manager, you may want to have a discussion with the accountant and finance manager to understand the reasoning behind the recommendation. It would be helpful to obtain specific data on the sales performance of each month and analyze any potential patterns or trends.
6. Make an informed decision: Based on the available information and analysis, you can form an opinion on whether you agree or disagree with the accountant's recommendation. Consider other factors such as customer demand, operational requirements, and potential long-term consequences.
Ultimately, it is essential to exercise critical thinking and gather more information to make a well-informed decision. Discussing the situation with relevant stakeholders and conducting further analysis can help you come to a reasonable conclusion.