ANSWERS Group Activity _7 Chapter 24

ANSWERS Group Activity _7 Chapter 24 - Review the...

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Review the information on the other side of this page and then answer each question below. (1) Briefly comment on management’s performance. Several responses would be acceptable, a possible response is below: Although the company had a positive variance in salaries, it was offset by unfavorable variances, particularly in sales which resulted in an overall unfavorable variance of $1,925. (2) Speculate and briefly discuss what may have caused the budget differences; be as specific as possible. Several responses would be acceptable, a possible response is below: The unfavorable sales variance could have been caused by an employee discounting sales prices (e.g. coupons) above planned amounts. The favorable variance for salaries could have been caused by the firing of a salaried employee. The unfavorable variance for the advertising contract could have been caused by the company expanding the scope of their advertising arrangement (i.e. adding a television campaign to their regular print advertising commitments). (3) What course of action would you recommend for the company?
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This note was uploaded on 08/31/2009 for the course ACC 310F taught by Professor Verduzco during the Fall '07 term at University of Texas at Austin.

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ANSWERS Group Activity _7 Chapter 24 - Review the...

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