Question

1. What is your opinion on the report that was presented by the accountant? What actions would it promote for the employees responsible for the results?
2. What would be the risks of making decisions based on the report by the accountant?
3. How did the managerial accounting process of standard costing and variance analysis improve the analysis of the operations of the firm?
4. What would be your reaction, as a manager, now that all the “new” information has reached your desk?
a) Direct Labor Variances
b) Direct Materials Variance
c) Overhead Variance

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1. What is your opinion on the report that was presented by the accountant? What actions would it promote for the employees responsible for the results?
The performance report that was presented by the accountant would suggest the areas which were favorable to the profitability of the firm and unfavorable to the profitability of the company. For example the profitability might be affected by both the decrease in revenue or by an increase in costs. In the performance report provided by the accountant, we could see that the actual sales were down by 4000 units which resulted in decline in actual revenue by $178,000. This indicates that sales people were responsible for the loss created for the month....

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