The Financial Results for One of the Subunits of Factory

question 187

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:

Evidence Support

The provision of factual information, data, or references to back up claims, propositions, or theories, enhancing their credibility and persuasiveness.

Request For Proposal

A formal document issued by an organization soliciting bids from potential vendors or service providers for a specific project or service.

External Party

An individual or organization that is outside the primary organizations or individuals involved in a particular situation or transaction.

Contract Bid

The process of submitting a proposal to undertake a specific project or job, often within a competitive context.