Administration control Flashcards
Describe the contents of each of the following reports and explain how you use them.
Weekly Operation Report
Used to determine the weeks performance as compared to projected goals. Shows weekly garment, shop towel, linen, and dust sales, hygiene sales, New and lost business, adds versus stops, weekly poundage washed, existing material cost, price increases, controllable and uncontrollable credits, labor expenses by department, sales credits, nog sales.
Monthly Financial Statement
Used to determine the locations performance on a YTD basis, and if expenses and sales are meeting projected goals. When sales fail to meet projected goals, operating budgets need to be adjusted accordingly. Likewise, when expenses exceed projections in any month, a plan must be developed to get back to projected expenses on a year to date basis as quickly as possible. The monthly financial statement consists of the sales schedule which details sales in various categories, the cost schedule which details costs of goods sold, garment and non-garment material costs, and the income statement, which details the operating expenses by department and net profit.
What process should be used to track scrap sales and how is it verified? ( do we do sales, Rachel what’s our process)
- R3405
- Form ZRBB will be used, must include the material #, quantity, price, and sales tax.
- Invoice must be signed by vendor and a copy keep in the office
Can these funds be designated to the production department for discretionary use?
• No- The revenue is reported under direct sale revenue
When is an accrual necessary?
• Is necessary when product was received in that month, but we have not received the invoice for it yet. A form must be filled out and submitted to make sure money is moved from the current month to pay it next month.
Invoices are to be processed in timely manner. In what time period are vendor invoices to be paid?
- 2 days- 48 hours
* Policy C-22
What is the criterion for an item to require an asset tag?
- Any item over $1,000.
- Any item requiring a CEA
- Anything that will last for more than 1 year
What are the key items that are looked at during a fixed asset audit?
- Anything with an asset tag must be verified as being at the location
- Computers, washers/dryers, heatseals, sewing machines, sami/pami, vehicles
What is the proper way to dispose of an asset?
- Policy C-28
- Must fill out a capital asset disposal form- signed by appropriate manager and sent to the accountant (electronic now)
- Copy made and retained by the location for the current year + 5 years.
What is a blanket Purchase Order and what are the requirements needed to use one of these?
- Policy C-22
- Good for up to 12 months
- Must be approved by appropriate partner per dispersment authorization schedule
- Recurring service with fixed cost (landscape)
Define Garment Investment Ratio.
• 24 to 26 weeks to pay off investment
• The lower the better
-Total ID/emblems/freight/garments
Describe the cost control system you implement in your operation. How does it work? What are the trigger points?
- Ledger budget
- Expenses are entered into the ledger and as PO’s are received and paid they are marked in the ledger. This is then reviewed in the middle of the month and end of month for monthly estimates
Why is it important to have properly segregated office functions?
- To make sure that internal controls are maintained to minimize potential for theft and manipulation of financial records.
- Removes the temptations to steal, puts obstacles in the way of someone who wants to steal, recognizes that some people steal.
What sales figure from the income statement is used to determine the production expense as a percentage to sales?
• Pure Rental + NOG
What is your locations’ projected growth and profit?
Sales: %
Goal: 10%
Profit: %
Goal: %
How often does policy require fixed asset audits be done at location?
• Annually
