The Financial Results for One of the Subunits of Factory

question 1

Essay

The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below.

Required:
1.Complete the performance report rounding to three decimal places.
2.Based on the data presented,what type of responsibility centre is this subunit?
3.Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $5,000 and exceeding 10% ( both criteria must be met)?

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Definitions:

Imagination Inflation

The increase in confidence that an imagined event actually occurred, due to the imagining of the event.

Misinformation Effect

A phenomenon where one's recall of episodic memories becomes less accurate due to post-event information.

Misinformation Effect

A phenomenon in which a person's recall of episodic memories becomes less accurate due to post-event information.

Alter Memory

The process of changing or modifying memories, often through suggestion, misinformation, or psychological techniques.