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Brandy Has Been Manager of the Downtown Branch of General

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Brandy has been manager of the downtown branch of General Bank for several years.During this time she has received very good annual evaluations for her management of the branch.However, during the current year (it is now July)she has been upset with the monthly performance report generated by the budgeting department at the home office.Her branch has been making steady progress with controlled growth during the year and she knows of no reason why the report has such widely fluctuating variances.One item that she suspects is causing some of the problem is that most of the costs of the bank are fixed, with each branch getting an allocation of home office expenses each month.The bank also has some branches which are fast growing and some of which are having operating difficulties.Required:From the information presented, what do you suggest as a possible cause of the reporting problems?

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Definitions:

Self-Selection

The process where individuals choose themselves based on their perception of fit or competence, often seen in job applicants or research participants.

Balance Sheet Approach

A method used in expatriate compensation that aims to equalize cost differences between the home country and the host country.

Compensating Expatriate Managers

The process of determining and providing adequate financial and non-financial benefits to managers who are temporarily assigned to work in foreign countries.

Financially

Pertaining to finance or finances, often used to describe actions or conditions relating to the management, investment, or allocation of money and assets.

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