Hi, need to submit a 1250 words paper on the topic JBS Report. The changes are as shown in the income statement.
When calculating the BEP for JBS, there is a challenge of classifying costs. It is very difficult to divide the costs categories as either a variable or a fixed cost. Consequently, the variable cost does not change proportionally to JBS revenue at each activity level. For instance, the revenues gotten from fee might change if the recruitment of students is changed. It is also difficult to categorize the faculty member as variable costs because there is high possibility of recruiting part-time staff. Consequently, there is a challenge attached to the time. Determining the time over which the variable and fixed cost relationship holds the status of the company is difficult to find out. Over a short time, the costs are viewed as fixed, but in the end, some of costs considered as fixed are now variable.
To evaluate the progress of JBS towards its mission, will use performance indicators and measures. The company will use the balance sheet, income statement, profit and loss account, and cash inflows of the previous year’s result to measure its performance. The data will be extracted from the relevance sources and then converted to financial ratios. This analysis involves incorporating both the financial and non-financial information into the evaluation. Additionally, the evaluation will seek the help of scorecard and benchmarking indicators. In Benchmarking, the institution will incorporate the comparative data in measuring the performance. The method takes the internal form where comparisons are done between various units within the institution. The technique will also take the functional form, where comparisons are conducted with the trusted external practitioner despite the market.