mgt610 home work

mgt610 home work - Wk 13 Question Question p8-5 Bob Haskins...

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Wk 13 Question Question p8-5 Bob Haskins is the purchasing manager for regal products. Each year regal products develops a master budget. Bob is responsible for preparing a purchasing budget, which he bases on budgeted levels of production. Bob carefully plans purchasing costs and raw material inventory levels to meet production needs. Each year, Yvonne lang , president of regal products, conducts performance evaluations and bonuses are paid to key employees, including Bob, based on meeting budgeted results. For the past two years, bob has received a very small bonus and has been chided by Yvonne for poor planning. Specially, Yvonne has pointed out that the purchasing department has not maintained adequate levels of raw material inventory and is always in a rush to obtain materials, resulting in increased shipping and handling charges. Further, regal must often pay premium amounts for immediate shipment of materials. In her most recent evaluation, Yvonne stated to BOB “The sales department and production department are doing an excellent job. They consistently exceed their budgets by 10% or more I don’t just understand why you cant meet your numbers.Perharps it is time for some changes around here” After getting chided by Yvonne, Bob went back and looked at his budget. He knew he
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This note was uploaded on 10/25/2008 for the course MGT 640 / 610 taught by Professor I.e during the Spring '08 term at Union.

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mgt610 home work - Wk 13 Question Question p8-5 Bob Haskins...

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