Reference no: EM132558428

Question 1: Some people suggest that because of the complexities and uncertainties in the business and economic environment, it is pointless to plan and to budget. Based on what you know from your study of management accounting, why is this bad advice? How would you respond to this issue? Make specific reference to relevant issues in the course

Question 2:

a) Why should we not be satisfied with all favourable or all unfavourable variances?

b) How can we tell that the process of variance analysis is working effectively?

c) List three(3) actions that should be taken after the variances have be identified. Identify the people/positions WHO should be addressed.

WHAT questions should be addressed, and reasons WHY variances are unacceptable

Question 3: What are the benefits of a flexible budget?

Question 4: Explain why MANAGEMENT CONTROL has nothing to do with trying to ______ control anything or anyone.

Question 5: In a decentralized organization, managers are recognized as being responsible for identified segments of the organization. How can you identify a segment of a decentralized organization? Given your answer to the previous question, how can senior management ensure goal congruence while allowing individual managers autonomy?