Mini Case – answer the questions at the end of the case below Tri-Metro Investments: Forecasting Help Desk Demand by Day “Hello, is this the Investment Management Help Desk?” said a tired voice on the other end of the telephone line at 7:42 am. “Yes, how can I help you?” said Thomas Bourbon, customer service representative (CSR). “I’ve got a problem. My best customer, with investment assets of over $10 million in our bank, received her monthly trust account statement. She says we computed the market value of one of her stocks inaccurately by using the wrong share price, which makes her statement $42,000 too low. I assured her we would research the problem and get back to her by the end of the day. Also, do you realize that I waited over four minutes before you answered my call?” said the trust administrator, Claire Woodworth. “Ms. Woodworth, give me the customer’s account number and the stock in question, and I will get back to you within an hour. Let’s solve the customer’s problem first. I apologize for the long wait,” said Bourbon in a positive and reassuring voice. The Help Desk supports fiduciary operations activities worldwide by answering questions from company employees, such as portfolio managers, stock traders, backroom company process managers, branch bank managers, accountants, and trust account administrators. These internal customers originate over 98 percent of the volume of Help Desk inquiries. Over 50 different internal processes and organizational units call the Help Desk. Some external customers such as large estate trust administrators are tied directly to their accounts via the Internet and occasionally call the Help Desk directly. The Help Desk is the primary customer contact unit within fiduciary operations, employing 14 full-time customer service representatives (CSRs), three CSR support employees, and three managers, for a total of 20 people. The three CSR support employees work full-time on research in support of the CSRs answering the telephone. The Help Desk handles about 2,000 calls a week and the pressure to reduce unit cost is ongoing. Forecast accuracy is a key input to better staffing decisions that minimize costs and maximize service. The accompanying table shows the number of calls per day (Call Volume). The senior manager of the Help Desk, Dot Gifford, established a team to try to evaluate short-term forecasting. The Help Desk Staffing Team consists of Gifford, Bourdon, Woodworth, and a new employee Gail Hamlet, who has an undergraduate degree in business management from Mount Saint Vincent University. This four-person team is charged with developing a long term forecasting procedure for the Help Desk. Gifford asked the team to make an informal presentation of their analysis in 10 days. The primary job of analysis has fallen on Hamlet, the newly hired operations analyst. It is her chance to make good impression on her boss and colleagues. In trying to develop a longer-term forecasting procedure for t ...

1. Mini Case – answer the questions at the end of the case below
Tri-Metro Investments: Forecasting Help Desk Demand by Day
“Hello, is this the Investment Management Help Desk?” said a
tired voice on the other end of the telephone line at 7:42 am.
“Yes, how can I help you?” said Thomas Bourbon, customer
service representative (CSR). “I’ve got a problem. My best
customer, with investment assets of over $10 million in our
bank, received her monthly trust account statement. She says we
computed the market value of one of her stocks inaccurately by
using the wrong share price, which makes her statement $42,000
too low. I assured her we would research the problem and get
back to her by the end of the day. Also, do you realize that I
waited over four minutes before you answered my call?” said
the trust administrator, Claire Woodworth. “Ms. Woodworth,
give me the customer’s account number and the stock in
question, and I will get back to you within an hour. Let’s solve
the customer’s problem first. I apologize for the long wait,”
said Bourbon in a positive and reassuring voice.
The Help Desk supports fiduciary operations activities
worldwide by answering questions from company employees,
such as portfolio managers, stock traders, backroom company
process managers, branch bank managers, accountants, and trust
account administrators. These internal customers originate over
98 percent of the volume of Help Desk inquiries. Over 50
different internal processes and organizational units call the
Help Desk. Some external customers such as large estate trust
administrators are tied directly to their accounts via the Internet
and occasionally call the Help Desk directly.
The Help Desk is the primary customer contact unit within
fiduciary operations, employing 14 full-time customer service
representatives (CSRs), three CSR support employees, and three
managers, for a total of 20 people. The three CSR support
employees work full-time on research in support of the CSRs
answering the telephone.

2. The Help Desk handles about 2,000 calls a week and the
pressure to reduce unit cost is ongoing. Forecast accuracy is a
key input to better staffing decisions that minimize costs and
maximize service. The accompanying table shows the number of
calls per day (Call Volume).
The senior manager of the Help Desk, Dot Gifford, established a
team to try to evaluate short-term forecasting. The Help Desk
Staffing Team consists of Gifford, Bourdon, Woodworth, and a
new employee Gail Hamlet, who has an undergraduate degree in
business management from Mount Saint Vincent University.
This four-person team is charged with developing a long term
forecasting procedure for the Help Desk. Gifford asked the team
to make an informal presentation of their analysis in 10 days.
The primary job of analysis has fallen on Hamlet, the newly
hired operations analyst. It is her chance to make good
impression on her boss and colleagues.
In trying to develop a longer-term forecasting procedure for
their short-term forecasting, it is important to analyze
qualitative information before rushing to calculate quantitative
methods. Hamlet asks the team the following questions:
1. Using the data on call volume below, how would you forecast
short-term demand? Show three methods: a) the average; b) a 2
period moving- for all 16 days - show your graph for the 2
period moving average; and c) exponential smoothing using a
constant of 0.3.
Day
Call Volume
1
288
2
336
3
295

3. 4
251
5
280
6
300
7
398
8
418
9
422
10
471
11
522
12
502
13
449
14
452
15
420
16
423
Exercise 1ACCT 424 - Advanced AccountingFASB
StatementsFor each of the following FASB statement titles,
enter the correct pronouncement number Accounting and
Reporting by Defined Benefit Pension PlansAccounting and
Reporting by Development Stage EnterprisesAccounting and
Reporting by Insurance EnterprisesAccounting and Reporting by
Insurance Enterprises for Certain Long-Duration Contracts and

4. for Realized Gains and Losses from the Sale of
InvestmentsAccounting and Reporting by Mutual Life Insurance
Enterprises and by Insurance Enterprises for Certain Long-
Duration Participating ContractsAccounting and Reporting for
Reinsurance of Short-Duration and Long-Duration
ContractsAccounting by Creditors for Impairment of a Loan—an
amendment of FASB Statements No. 5 and 15Accounting by
Creditors for Impairment of a Loan-Income Recognition and
Disclosures—an amendment of FASB Statement No.
114Accounting by Debtors and Creditors for Troubled Debt
RestructuringsAccounting Changes and Error Corrections—a
replacement of APB Opinion No. 20 and FASB Statement No.
3Accounting for Certain Acquisitions of Banking or Thrift
Institutions—an amendment of APB Opinion No. 17, an
interpretation of APB Opinions 16 and 17, and an amendment of
FASB Interpretation No. 9Accounting for Certain Derivative
Instruments and Certain Hedging Activities-an amendment of
FASB Statement No. 133Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and
EquityAccounting for Certain Hybrid Financial Instruments—an
amendment of FASB Statements No. 133 and 140Accounting for
Certain Investments Held by Not-for-Profit
OrganizationsAccounting for Certain Investments in Debt and
Equity SecuritiesAccounting for Certain Mortgage Banking
ActivitiesAccounting for Certain Marketable
SecuritiesAccounting for Compensated AbsencesAccounting for
ContingenciesAccounting for Contingencies: Transition
Method—an amendment of FASB Statement No. 5Accounting
for Contributions Received and Contributions MadeAccounting
for Costs and Initial Rental Operations of Real Estate
ProjectsAccounting for Costs Associated with Exit or Disposal
ActivitiesAccounting for Derivative Instruments and Hedging
ActivitiesAccounting for Derivative Instruments and Hedging
Activities—Deferral of the Effective Date of FASB Statement
No. 133—an amendment of FASB Statement No. 133Accounting
for Financial Guarantee Insurance ContractsAccounting for

5. Forward Exchange Contracts—an amendment of FASB
Statement No. 8Accounting for Franchise Fee
RevenueAccounting for Futures ContractsAccounting for
Income TaxesAccounting for Income TaxesAccounting for
Income Taxes: Oil and Gas Producing CompaniesAccounting for
Income Taxes-Deferral of the Effective Date of FASB Statement
No. 96—an amendment of FASB Statement No. 96Accounting
for Income Taxes-Deferral of the Effective Date of FASB
Statement No. 96—an amendment of FASB Statement No.
96Accounting for Income Taxes-Deferral of the Effective Date
of FASB Statement No. 96—an amendment of FASB Statement
No. 96Accounting for Intangible Assets of Motor Carriers—an
amendment of Chapter 5 of ARB No. 43 and an interpretation of
APB Opinions 17 and 30Accounting for Leases: Initial Direct
Costs—an amendment of FASB Statement No. 13Accounting for
Leases: Sale-Leaseback Transactions Involving Real Estate,
Sales-Type Leases of Real Estate, Definition of the Lease Term,
and Initial Direct Costs of Direct Financing LeasesAccounting
for Mortgage Servicing Rights—an amendment of FASB
Statement No. 65Accounting for Mortgage-Backed Securities
Retained after the Securitization of Mortgage Loans Held for
Sale by a Mortgage Banking Enterprise—an amendment of
FASB Statement No. 65Accounting for Nonrefundable Fees and
Costs Associated with Originating or Acquiring Loans and
Initial Direct Costs of LeasesAccounting for Preacquisition
Contingencies of Purchased Enterprises—an amendment of APB
Opinion No. 16Accounting for Product Financing
ArrangementsAccounting for Real Estate Time-Sharing
Transactions—an amendment of FASB Statements No. 66 and
67Accounting for Sales of Real EstateAccounting for Sales with
Leasebacks—an amendment of FASB Statement No.
13Accounting for Servicing of Financial Assets—an amendment
of FASB Statement No. 140Accounting for Special Termination
Benefits Paid to EmployeesAccounting for Stock-Based
CompensationAccounting for Stock-Based Compensation—
Transition and Disclosure—an amendment of FASB Statement

6. No. 123Accounting for Tax Benefits Related to U.K. Tax
Legislation Concerning Stock ReliefAccounting for the Costs of
Computer Software to Be Sold, Leased, or Otherwise
MarketedAccounting for the Effects of Certain Types of
RegulationAccounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed OfAccounting for the
Impairment or Disposal of Long-Lived AssetsAccounting for
the Translation of Foreign Currency Transactions and Foreign
Currency Financial StatementAccounting for Title
PlantAccounting for Transfers and Servicing of Financial Assets
and Extinguishments of LiabilitiesAccounting for Transfers of
Financial Assets—an amendment of FASB Statement No.
140Accounting for Asset Retirement ObligationsAccounting
for LeasesAccounting for Research and
Development CostsAcquisitions of Certain Financial
Institutions—an amendment of FASB Statements No. 72 and
144 and FASB Interpretation No. 9Amendment of Statement 133
on Derivative Instruments and Hedging ActivitiesAmendments
to FASB Interpretation No. 46(R)Balance Sheet Classification
of Deferred Income Taxes—an amendment of APB Opinion No.
11Business CombinationsCapitalization of Interest
CostCapitalization of Interest Cost in Financial Statements That
Include Investments Accounted for by the Equity Method—an
amendment of FASB Statement No. 34Capitalization of Interest
Cost in Situations Involving Certain Tax-Exempt Borrowings
and Certain Gifts and Grants—an amendment of FASB
Statement No. 34Changes in the Provisions of Lease
Agreements Resulting from Refundings of Tax-Exempt Debt—
an amendment of FASB Statement No. 13Classification of
Obligations That Are Callable by the Creditor—an amendment
of ARB No. 43, Chapter 3AClassification of Renewals or
Extensions of Existing Sales-Type or Direct Financing Leases—
an amendment of FASB Statement No. 13Classification of
Short-Term Obligations Expected to Be
RefinancedConsolidation of All Majority-owned Subsidiaries—
an amendment of ARB No. 51, with related amendments of APB

7. Opinion No. 18 and ARB No. 43, Chapter 12Deferral of the
Effective Date of Certain Accounting Requirements for Pension
Plans of State and Local Governmental Units—an amendment of
FASB Statement No. 35Deferral of the Effective Date of Certain
Accounting Requirements for Pension Plans of State and Local
Governmental Units—an amendment of FASB Statement No.
35Deferral of the Effective Date of Certain Provisions of FASB
Statement No. 125—an amendment to FASB Statement No.
125Deferral of the Effective Date of Recognition of
Depreciation by Not-for-Profit Organizations—an amendment of
FASB Statement No. 93Designation of AICPA Guide and
Statement of Position (SOP) 81-1 on Contractor Accounting and
SOP 81-2 concerning Hospital-Related Organizations as
Preferable for Purposes of Applying APB Opinion
20Designation of AICPA Guides and Statement of Position on
Accounting by Brokers and Dealers in Securities, by Employee
Benefit Plans, and by Banks as Preferable for Purposes of
Applying APB Opinion 20Determining Contingent Rentals—an
amendment of FASB Statement No. 13Determining Materiality
for Capitalization of Interest Cost—an amendment of FASB
Statement No. 34Determining whether a Convertible Security is
a Common Stock Equivalent—an amendment of APB Opinion
No. 15Disclosure about Derivative Financial Instruments and
Fair Value of Financial InstrumentsDisclosure of Foreign
Currency Translation InformationDisclosure of Information
about Capital StructureDisclosure of Information about
Financial Instruments with Off-Balance-Sheet Risk and
Financial Instruments with Concentrations of Credit
RiskDisclosure of Information about Major Customers—an
amendment of FASB Statement No. 14Disclosure of Long-Term
ObligationsDisclosure of Pension Information—an amendment
of APB Opinion No. 8Disclosure of Postretirement Health Care
and Life Insurance BenefitsDisclosures about Derivative
Instruments and Hedging Activities—an amendment of FASB
Statement No. 133Disclosures about Fair Value of Financial
InstrumentsDisclosures about Oil and Gas Producing

8. Activities—an amendment of FASB Statements 19, 25, 33, and
39Disclosures about Segments of an Enterprise and Related
InformationEarnings per ShareElimination of Certain
Disclosures for Business Combinations by Nonpublic
Enterprises—an amendment of APB Opinion No. 16Employers'
Accounting for PensionsEmployers' Accounting for
Postemployment Benefits—an amendment of FASB Statements
No. 5 and 43Employers' Accounting for Postretirement Benefits
Other Than PensionsEmployers' Accounting for Settlements and
Curtailments of Defined Benefit Pension Plans and for
Termination BenefitsEmployers' Disclosures about Pensions and
Other Postretirement Benefits—an amendment of FASB
Statements No. 87, 88, and 106Employers’ Accounting for
Defined Benefit Pension and Other Postretirement Plans—an
amendment of FASB Statements No. 87, 88, 106, and
132(R)Exchanges of Non-monetary Assets—an amendment of
APB Opinion No. 29Exemption from Certain Required
Disclosures about Financial Instruments for Certain Nonpublic
Entities—an amendment to FASB Statement No. 107Extension
of "Grandfather" Provisions for Business
CombinationsExtinguishment of Debt-an amendment of APB
Opinion No. 26Extinguishments of Debt Made to Satisfy
Sinking-Fund Requirements—an amendment of FASB Statement
No. 4Fair Value MeasurementsFinancial Accounting and
Reporting by Oil and Gas Producing CompaniesFinancial
Reporting and Changing PricesFinancial Reporting and
Changing PricesFinancial Reporting and Changing Prices:
Elimination of Certain Disclosures—an amendment of FASB
Statement No. 33Financial Reporting and Changing Prices:
Foreign Currency Translation—an amendment of FASB
Statement No. 33Financial Reporting and Changing Prices:
Investment Companies—an amendment of FASB Statement No.
33Financial Reporting and Changing Prices: Motion Picture
FilmsFinancial Reporting and Changing Prices: Specialized
Assets-Income-Producing Real Estate—a supplement to FASB
Statement No. 33Financial Reporting and Changing Prices:

9. Specialized Assets-Mining and Oil and Gas—a supplement to
FASB Statement No. 33Financial Reporting and Changing
Prices: Specialized Assets-Timberlands and Growing Timber—a
supplement to FASB Statement No. 33Financial Reporting by
BroadcastersFinancial Reporting by Cable Television
CompaniesFinancial Reporting by Producers and Distributors of
Motion Picture FilmsFinancial Reporting for Segments of a
Business EnterpriseFinancial Reporting for Segments of a
Business Enterprise: Interim Financial Statements—an
amendment of FASB Statement No. 14Financial Reporting in
the Record and Music IndustryFinancial Statements of Not-for-
Profit OrganizationsForeign Currency TranslationGoodwill and
Other Intangible AssetsInception of the Lease—an amendment
of FASB Statement No. 13Induced Conversions of Convertible
Debt—an amendment of APB Opinion No. 26Inventory Costs—
an amendment of ARB No. 43, Chapter 4Noncontrolling
Interests in Consolidated Financial Statements—an amendment
of ARB No. 51Not-for-Profit Entities: Mergers and
Acquisitions—Including an amendment of FASB Statement No.
142Prior Period AdjustmentsProfit Recognition on Sales-Type
Leases of Real Estate—an amendment of FASB Statement No.
13Recognition of Depreciation by Not-for-Profit
OrganizationsRegulated Enterprises-Accounting for
Abandonments and Disallowances of Plant Costs—an
amendment of FASB Statement No. 71Regulated Enterprises-
Accounting for Phase-in Plans—an amendment of FASB
Statement No. 71Regulated Enterprises-Accounting for the
Discontinuation of Application of FASB Statement No.
71Related Party DisclosuresReporting a Change in Accounting
for Railroad Track Structures—an amendment of APB Opinion
No. 20Reporting Accounting Changes in Interim Financial
StatementsReporting by Defined Benefit Pension Plans of
Investment Contracts—an amendment of FASB Statement No.
35Reporting by Transferors for Transfers of Receivables with
RecourseReporting Comprehensive IncomeReporting Gains and
Losses from Extinguishment of DebtReporting Segment

10. Information in Financial Statements That Are Presented in
Another Enterprise's Financial Report—an amendment of FASB
Statement No. 14Rescission of FASB Statement No. 32 and
Technical CorrectionsRescission of FASB Statement No. 53 and
amendments to FASB Statements No. 63, 89, and 121Rescission
of FASB Statement No. 75 and Technical CorrectionsRescission
of FASB Statements No. 4, 44, and 64, Amendment of FASB
Statement No. 13, and Technical CorrectionsResearch and
Development ArrangementsRevenue Recognition When Right of
Return ExistsSpecialized Accounting and Reporting Principles
and Practices in AICPA Statements of Position and Guides on
Accounting and Auditing Matters—an amendment of APB
Opinion No. 20Statement of Cash FlowsStatement of Cash
Flows-Exemption of Certain Enterprises and Classification of
Cash Flows from Certain Securities Acquired for Resale—an
amendment of FASB Statement No. 95Statement of Cash Flows-
Net Reporting of Certain Cash Receipts and Cash Payments and
Classification of Cash Flows from Hedging Transactions—an
amendment of FASB Statement No. 95Subsequent
EventsSuspension of Certain Accounting Requirements for Oil
and Gas Producing Companies—an amendment of FASB
Statement No. 19Suspension of the Reporting of Earnings per
Share and Segment Information by Nonpublic Enterprises—an
amendment of APB Opinion No. 15 and FASB Statement No.
14The Fair Value Option for Financial Assets and Financial
Liabilities—Including an amendment of FASB Statement
No. 115The FASB Accounting Standards CodificationTM and
the Hierarchy of Generally Accepted Accounting Principles—a
replacement of FASB Statement No. 162The Hierarchy of
Generally Accepted Accounting PrinciplesTransfers of Assets to
a Not-for-Profit Organization or Charitable Trust That Raises or
Holds Contributions for OthersYield Test for Determining
whether a Convertible Security is a Common Stock
Equivalent—an amendment of APB Opinion No. 15