solution - Managerial Accounting Winter 2010 Section Q Case...

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Managerial Accounting Managerial Accounting Winter 2010 – Section Q Winter 2010 – Section Q Case: Compagnie du Froid SA Case: Compagnie du Froid SA Evaluating the departmental performance Evaluating the departmental performance Date of submission: Name: Student no.: Section:
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Introduction Compagnie du Froid SA is a company engaged in the business of selling the ice cream and the business is very seasonal in nature and lot depends on the climate conditions and changes. It is believed by the CEO of the company that the various departments should be given more of the autonomy through decentralization. Currently, they are evaluating the budgeted and the actual results of their French division. Problem Statement In the Exhibit presented with the case, there is selective data pertaining to the performance of the French division. The actual results are compared with the budgeted estimates. The CEO of the company is happy with the performance as the sale is on the rise and so is the profit and Return on Investment (ROI). It is therefore desired to dissect the results so presented in a more elaborate and meaningful way. Also it is required to comment whether the manager of the division should receive the bonus of not. And if there is some other alternate means to measure the performance.
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