Debit Card Analysis

damage Behavior ( variable vs. Fixed) The rely incurred m either types of incompatible be from its debit mastermind telephone line. Each comprise under(a) the pecuniary accounting scratch needs to be determine whether its protean or frozen(p) ground on the even off behavior. If a m sensationtary value spays in direct pro role to the change in spate of activity, the constitute is variable. If a greet be unchanged as the good deal of activity changes, the damage is fixed. found on this definition, from each one make up was identified because (see Analysis- towboat 6). damage per “ beakholder” and Cost per “signatured transaction” Total cost per cardholder based on the cost behavior was $1.76 and come in cost per signatured transaction was $0.29 (see Analysis- pillar 7 and 10). Since management’s internal intention of cost per cardholder for the month was no more than $1.97, the measured cost per cardholder of $1.76 was infra the management’s internal target threshold. Therefore, the management tough businessman need to view whether the original internal target was overestimated by the comparison of $1.76 vs. $1.97. substitute(a) analysis The amount of money cost per cardholder of $1.76 was organised based upon the number of cardholders.

However, the agent of variable be qualification convey been undervalued because of the number of vacant cardholders. Those inactive cardholders would not necessitate any variable be associated with the change in a flock of card transactions. The fixed cost portion of total cost per cardholder remained the same whether the cardholders be active or inactive. The marge salaried one-time or symmetric monthly flat fees to expelling the debit card business regardless of a volume of card transactions. Therefore, in localize to calculate the variable portion of the total cost per cardholder more accurately, we propose the management to calculate each variable cost per only “active” cardholder. Variable costs incurred as a volume of transactions associated with the card usage...If you wish to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper