At the beginning of the period, Cambridge Company estimated that sales would be 10,000 units. Actual sales totaled 14,000 units. The manager was very excited about the unexpected additional income that the extra 4,000 units would produce. Imagine her surprise upon seeing the following report:
The company's owner is very upset, charging that the manager did a lousy job of controlling costs.Required:Prepare a performance report that can be used to evaluate the owner's charge that the manager did a poor job of controlling costs. Be sure to label variances as favorable or unfavorable.Is the owner justified in charging the manager with poor cost control? Why or why not?
Definitions:
Managerial Skills
The capabilities and knowledge necessary for effective planning, organizing, directing, and controlling of an organization’s resources to achieve its objectives.
Organizational Hierarchy
A structured arrangement of jobs and departments within an organization, ranked according to levels of responsibility, authority, and status.
Leadership Process
The ongoing practice of influencing and guiding others towards achieving collective goals.
Leadership Skills
The ability to influence and guide individuals or groups towards the achievement of goals.
Q10: Which of the following is the approximate
Q19: Indirect costs are often pooled, and not
Q60: A cash flow that only occurs in
Q64: A schedule of cash receipts is often
Q72: For decision-making purposes, qualitative factors are relevant
Q119: Segment reports are used to evaluate the
Q140: Budgeted depreciation expense would not appear on
Q144: Which formula best represents the first step
Q167: An investment that costs $5,000 will produce
Q194: The following events occurred for Ringgold