Reply with at least 250 words reference and citation A. Only one comprehensive report is prepared for the month showing performance of all the divisions, this is wrong when division wise performance m
Do you need academic writing help with your homework? Let us write your papers.
Order a Similar Paper
Order a Different Paper
Reply with at least 250 words reference and citation
A.
Only one comprehensive report is prepared for the month showing performance of all the divisions, this is wrong when division wise performance must be discussed upon, division wise performance report shall be prepared. All the data that is being presented is in financial numbers, no quantative data has been provided in the report viz., qty of raw material used, units produced, units on hand, labor hours taken, rate offered to labors. Production report has failed to calculate variances in each area separately how material cost was unfavorable was there usage inefficiency or was rate of purchases exceeded the budgeted rate.
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowB.Although Sara made an adverse remark about Ken’s division performance, she failed to tell how the performance was not up to the mark. She directly pointed out than Ken’s division is underperforming, without explaining how the underperformance was calculated. To Ken’s knowledge his division had performed well. Hence, this has brought down the moral of Ken and might leave a feeling that even though performing up to the mark using true potential, his performance was not apprehended but it was undermined.
C.
To prepare more informative production report other details will be required viz, quantity of material bought, rate of material bought, budgeted rate, budgeted hours of labor.If all these details are available, more informative report can be prepared.That report will include budgeted qty of production versus actual production quantity, budgeted purchase price versus actual purchase price, budgeted total quantity versus actual quantity and, budgeted labor hours versus. actual labor hours.
D.
When my recommended changes in reporting are implemented, Ken’s behavior will change by giving him some sort of credit for his achievements. Because my recommended changes will give him chance to explain where he has been efficient in working and wherever he has been inefficient he will get a chance to explain the factors which were not in his control and so he could not control the adverse ratios.
Reference:
Davis C. E., & Davis E. (2020). Managerial Accounting, Enhanced eText (4th ed.). John Wiley & Sons. ISBN-13: 9781119577669
