2.2

Question 1

break even pros (2) cons(2)

Answer 1

pros
- easy, quick: action can be taken imediatly (e.g raise price to increase contrebution per unit)
therefore
increase in reactivity
- use as part of a buissness plan to incorage investement (e.g to get exepted from banks)

cons:
- assumes veriable cost per unit is constent (its not - EoS)
therefore
more profit then expected thereofre
inneficient management of resources
therefore
lower comp adv

• assumes all output is sold
  ↓cash flow then expected
  ↑short term loans
  ↑intrest
  ↓profit

Question 2

budget pros

Answer 2

pros:
- deligation/empowerment
∴ ↑motivation (maslow/hazburg)
∴↑productivity/quality

• used for buisssness plan
  ∴↑invested
  ∴↑CE for promotion/R&D
• controle income and expendeture / communicaiton tool / departments corrdinat
  ∴↑efficiency in managment of reaucoyrses
  ∴comp adv

cons:
- resentemnt between with diffrent budgents
∴↓team work between departments
↓motivation / efficient use of reasureces
↓comp adv

• time consuming / for managment
  ↓time spent on making big decisions
  ↓reactivity of buissness

Question 3

historical budget

zero hour

Answer 3

use it or lose it

zero hour:
pros:
good flexibility ↑reactivity
cons:
↓deligation ↓motivation
↓porductivity ↓EoS
OR
↑tunover rate ↑cost or recrutmrnt