Open Mobile Menu"
FP&A Exam Preparation Blog

FP&A Friday: Chapter 9 - Managerial & Cost Accounting

Aug 24, 2018

Join us as we review the FP&A Learning System in our weekly VLOG. This week, let's go through Chapter 9 - Managerial & Cost Accounting .



This week's question is:


A company has a telephone-based direct sales force that is categorized under five product lines. The table below shows the current staffing for each product line and the projected attrition and changes in sales targets that will affect staffing levels.

ABC Electronics Sales Force Headcount Gap Analysis

Line

Line

Line

Line

Line

A

B

C

D

E

Current headcount

26

30

32

12

20

Employees at retirement age

4

3

3

2

4

Retirement rate

75%

75%

75%

75%

75%

Non-retirement attrition rate (projected)

15%

10%

10%

3%

2%

Sales target change

5%

8%

2%

4%

-25%


What is the staffing gap for Line C?
   A. 5.9
   B. -2.8
   C. 4.8
   D. 8.2

Watch the video to find out how to determine the solution, and get the correct answer.

Stay tuned for next week's video on Chapter 10 - Microeconomics.

Want more FP&A Friday Videos? You can see them all here.