Define the actual performance of the departments

Assignment Help Accounting Basics
Reference no: EM131701451

Question: The City of Toth produces monthly budgetary control reports. The amount shown in the budget column is 1 /12 of the annual budget. Over lunch, two department heads were discussing this report. The first manager said, "I like the idea of using 1 /12 of my annual budget each month. My costs are constant throughout the year. I can usually find small savings and show favorable variances each month." The second manager disagreed. "I don't like it. Most of my costs are incurred during Carnival and around Christmas. As a result, I always have unfavorable variances in March and December regardless of what I do. It is especially upsetting because employee performance appraisals are made in April, and the council looks especially hard at our March results." What is the problem with the way these control reports are prepared? What should be done to make the reports more reflective of the actual performance of the departments?

Reference no: EM131701451

Questions Cloud

Through a difficult or frightening situation : Has positive self-talk ever helped you through a difficult or frightening situation? What was the situation? How did positive self-talk help you?
How has the incarceration of mentally ill adults impacted : What data is available that indicates mentally ill individuals are over-represented in the criminal justice system? (Include sources)
Solving problem related to balanced budget amendment : Your state legislature is considering a balanced budget amendment. One proposed approach defines balanced budgets as ones in which estimated revenues.
How military government of burma has been sort of reflection : How military government of Burma has been a sort of ‘reflection' of the British colonial government that preceded it, in terms of its practices, policies, etc.
Define the actual performance of the departments : What is the problem with the way these control reports are prepared? What should be done to make the reports more reflective of the actual performance?
How much will operating profit change : The company has the capacity to produce the special order. How much will operating profit change if Sports Specialty accepts this order
What specific facts about the case support your position : What specific facts about the case support your position? What specific evidence from the first trial helps to support your position?
Effects of cultural diversity in the workplace : Coot Martin outlines some of the positive negative effects of cultural diversity in the workplace. How do you see cultural diversity as playing a positive.
Review case-budgeting cash disbursements : (Budgeting cash disbursements) A city is preparing its cash forecast for the month of July. Based on the following information, compute the estimated.

Reviews

Write a Review

Accounting Basics Questions & Answers

  On december 312012 dow steel corporation had 800000 shares

on december 312012 dow steel corporation had 800000 shares of common stock and 50000 shares of 8 noncumulative

  You purchase a home in feb 10th 2013 that you are going to

you purchase a home in feb 10th 2013 that you are going to use as a rental property. you paid 180000 and the land was

  Gain or loss on retirement-unamortized premium

Company has bonds outstanding with a par value of $110,000. The unamortized premium on these bonds is $3,400. If the company retired these bonds at a call price of 94, the gain or loss on this retirement is:

  Prepare an income statement for the year ending

The following amounts were taken from the accounting records of Rainbow Consulting Services, Inc., as of July 31, 2007.

  Equivalent units of production for conversion costs

The number of equivalent units of production for conversion costs for the period was

  The trustees want the accountant to charge

The trustees want the accountant to charge the cost of preparing and mailing the brochures to the Distribution of Food Program. The executive director thinks the expenses should be charged to fund raising expenses.

  Decrease its collection period

Galambos Corporation had an average receivables collection period of 19 days in 2003. Galambos has stated that it wants to decrease its collection period in 2004 to match the industry average of 15 days.

  Prepare operating income statements for both years

Prepare operating income statements for both years based on absorption costing. Prepare operating income statements for both years based on variable costing.

  Your company plans to produce a product for two more years

your company plans to produce a product for two more years and then to shut down production. you are considering

  Prepare journal entry to record the sale of the equipment

Gordon Corporation owns an equipment truck originally purchased for $30,000, Prepare journal entry to record the sale of the equipment truck for $17,0000 cash

  Explain the meaning of contribution and break-even analysis

ACCT5021 Accounting for Managers Assessment Task: Case Study. Explain the meaning of 'contribution', and 'break-even analysis' and discuss their usefulness

  He had successfully directed the western-area accounting

a manufacturing corporation recently reassigned one of its accounting managers to the internal audit department. he had

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd