SOLUTION EXHIBIT 33A
Summarize the Flow of Physical Units and Compute Output in Equivalent Units; FIFO Method
of Process Costing, Assembly Department of Larsen Company for October 2014.
Chapter 8: Management control systems, transfer pricing, and
1. What is the management control system, and how should it be designed?
A management control system is a means of gathering and using
Past performance: previous sales, costs
Market Feedback: changes in sales volume
Anticipated changes: fluctuations in material cost
increases in salaries
Rolling budget- always have 12 to 18 months budgete
1. What is the master budget, and why is it useful?
The master budget summarizes the financial projections of all the companys budgets. It
expresses managements operating and financing plans- the formalized outline of the