(- clas cure l https/hewoorrectmhrdcatmorn/flow/correct.html Ch 09 IP P1 6 Help

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(- clas cure l https/hewoorrectmhrdcatmorn/flow/correct.html Ch 09 IP P1 6 Help Save&Exit; Subn Question 1 ot1 Dave is the manager of the Software Sales Department. At the end of the year his department's income statemment revealed his direct costs were aver budgeted by $25,000 The Director of Operations, Dave's boss, asks Dave to explain why he let the drect costs exceed budget Which of the following is Dave's best response? pons Dave should resign, because he is an ineffective manager. Dave should point out that he is not in control of any of his department's direct costs Dave should ask that a responsibility accounting performance report be generated to determine whether the large unfavorable budget variances were within his control before proceeding with the discussion. Dave should pursue a promotion because direct costs would have been oven higher if not for his managerial prowess submit answer&continu;

Explanation / Answer

Question :1 Answer is option (3) David Should ask that a responsibility accounting performance report be generated to determine whether the large unfavorable budget variances were within his control before proceeding With Discussion reponsibitlity performance reports are prepared for to make depatment managers responsible for the costs that they can control.in case of costs are not controlled by managers then they are not responnsible. So , before going into Discussion , David should go thorugh the responsibility performance report to check the variance of expenses occurred Controllable or not. Question :2 Answer is option (4) :    50% Manufacture cycle efficiency =Processing Time /(processing time +Inspection time+Wait time +Move time) Processing time=5 days processing time +Inspection time+Wait time +Move time =5 days+1 day+2 days+2 days =10 days Manufacture cycle efficiency =5 days/10 Days =50%

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