For the 24 months preceding the plan and the first 24 months after plan implementation. After pulling
Question:
For the 24 months preceding the plan and the first 24 months after plan implementation. After pulling out seasonal effects these monthly series are presented in figures 2, 3 and 4. If the plan has no impact on these expenses then you would expect no dramatic change in the series around month 25. Figure 2 plots (wage expense in month t/sales in month t) figure 3 plots (cost of goods sold in month t/sales in month t) figure 4 plots annual turnover computed as (12 x cost of goods sold in month t/inventory at[1] beginning of month t) for example, if monthly cost of sales is $100 and the annual inventory turnover ratio is 4, it suggests a monthly turnover of 0.333 with the firm holding $300 in monthly inventory.
What is the impact of the incentive plan on wage expense as a percent of sales?
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann