Sublime anz

Benefit allowances could be for like meal, accommodation and travel 1 . They can be made to employees and contractors 1 2 . Accommodation allowance is generally treated taxable, meaning a deduction is not allowed. But in certain circumstances, they are tax exempt 3 . For meals, a tax exemption is available for the full amount of meal payments, including reimbursements and allowances, when employee is far away from the normal work location on business 4 . Travel allowance are tax free, if there is a temporary change in the work place 5 . 1. https://www.ird.govt.nz/employing-staff/paying-staff/allowances 2. https://www.ird.govt.nz/roles/screen-production-industry/allowances-and-per-diems 3. https://www.ird.govt.nz/employing-staff/paying-staff/allowances/accommodation-allowances 4. https://www.ird.govt.nz/employing-staff/paying-staff/allowances/meal-and-clothing-allowances 5. https://www.ird.govt.nz/employing-staff/paying-staff/allowances/travel-allowances

Contractors need to provide a IR330C - Tax rate notification for contractors 1 . The no notification rate is 45% 2 . The contractor has to register themselves for GST, if their gross(total before tax) income, including allowances( like for accommodation) and per diems(per day payments for meals and laundry) was more than $60,000 for the last 12 months or likely to be more than $60,000 for the next 12 months. 3 1. https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir300---ir399/ir330c/ir330c-2019.pdf 2. https://www.ird.govt.nz/income-tax/withholding-taxes/schedular-payments/making-schedular-payments/deductions-from-payments-to-contractors 3. https://www.ird.govt.nz/roles/screen-production-industry/self-employed-res-contractors

Incremental budgeting Incremental budgeting is the budgeting process in which a new budget is developed by making marginal changes to the current budget. These changes could include adjusting partly for inflation and partly for changes in the level of activity. Advantages of this method include simplicity, consistency, and operational stability while disadvantages include discouragement of financing of completely new ideas to reduce cost. There is no encouragement in finding alternatives to reduce costs while budgeting. Zero-based budgeting This method of budgeting does not rely on budget history. All expenses are to be justified to be included in the budget. Alternatives available for various activities are listed, costed and the best is chosen. So funds are allocated based on efficiency and necessity than based on the budget history.  Disadvantages of this efficient budgeting method are that it could be time-consuming and the requirement of expertise in the form of qualified or t...

Budgeting is a Management Control System, which uses information to evaluate financial performance. Types of Budget Fixed Budget or a Static Budget These are based on a set volume of sales or revenues, which can be used in industries that don't change that much in the period. They can also be updated periodically. Its advantages include simplicity and ease of preparation.  Flexed budgets Flexi budgets change according to changes in activity. Activity measures are used once a control period is completed to generate a flexed budget. This is generally done by analyzing variable costs, contribution margin, and fixed costs. A flexed budget is compared with a fixed budget to understand variances for control purposes Rolling budget This involves the incremental extension of the budget model so that the firms always have a 12-month period budget looking toward the future. The advantage is that this budgeting activity is monthly work, rather than a yearly activity. Only one month has to be ...

Customer Segmentation Customer/Market segmentation is the process of dividing up bigger markets into smaller groups based on certain shared characteristics 1 . The demand function of these  smaller groups would be then different and competitive advantage could be gained if segments of customers can be  identified to serve. Lifestyles, attitudes, values, beliefs and culture can be all explored to create a basis for segmentation of  markets. Porters generic strategies are Cost leadership , differentiation and focus 2 . According to Porter, choosing more than one strategy will lead to waste of resources. Differentiation is developing different products/services  for more than one segment while focus is choosing to choosing to serve only one segment. An undifferentiated approach is where a product is developed that needs of the largest number of buyers, which can lead to cost leadership strategy. Hyper segmentation is the practice of breaking down target market into a ve...