Achieve favorable budget variances by cutting labor

Assignment Help Financial Management

Reference no: EM131516961

In some organizations, cost center managers have been known to achieve favorable budget variances by cutting labor and other operating costs to the point where services are not being performed in an adequate and timely fashion. This problem can best be reduced by:

Avoiding the use of cost variances in evaluations.

Evaluating cost centers on the basis of ROI/ROA rather than cost variances.

Using effectiveness measures as well as cost measures in evaluation.

Avoiding the use of performance evaluations in compensation decisions.

Reference no: EM131516961

Questions Cloud

Improvements in quality of medical procedures : Improvements in quality of medical procedures often mean that cost per unit of output decreases, quality of life is improved;

Determine the project cash flows in actual dollars : Determine the project cash flows in actual dollars. Determine the project cash flows in constant (time 0) dollars.

What is jacobs present equivalent cost of leasing : The Jacob Company needs to acquire a new lift truck for transporting its final product to the warehouse. What is Jacob’s present equivalent cost of leasing?

Robotic-welding equipment : Two years ago Quintana Company purchased a new piece of robotic-welding equipment. which was more efficient than their existing equipment

Achieve favorable budget variances by cutting labor : achieve favorable budget variances by cutting labor and other operating costs to the point

How much should she invest monthly in a sinking fund : how much should she invest monthly in a sinking fund with 3 % interest compounded? monthly?

Change in unrestricted-temporarily restricted : Indicate whether each of the following actions would result in a change in unrestricted, temporarily restricted, or permanently restricted net assets this year.

Calculate the expected empirical yields for a path : Calculate the expected expectations yield for a (1,4,1,) path. Calculate the expected empirical yields for a (2,3,1) path.

Two stocks to be correctly priced relative to other : What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

User Account

All Pages