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First, let's discuss how the budgeting process as employed by Springfield contributes to the failure to achieve the president's sales and profit targets. Click here to view the file

1.Discuss how the budgeting process employed by Springfield Corporation contributes to its failure to achieve the president's sales and profit targets.

2. Suggest how Springfield Corporation's budgeting process could be revised to correct the problem.

3. Should the functional areas be expected to cut their costs when sales volume falls below budget? Explain your answer.
4. Springfield uses a top-down approach to the budget process. What would be a better approach to budgeting? How would we go about implementing this? For example, what should be first, second, or third steps?

5.Let's now assume the president agrees that there is a need to involve the affected departments. Which budget should be prepared first, and why? At what point in the budget planning process should production be involved?

6. What should the president's role be in the budgeting process?

7. Did the consultant provide any positive results for this company? What should the consultant have done?
8. How about a rolling budget? Would this type of budgeting process, perhaps, be relevant for Springfield? Why or why not?
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Dear Student Please find... View the full answer

Accounting-7838609.doc

Answer
Serial Direct labour,
No.
Direct Material,
Manufacturing
overhead
1)
Direct Labour

Conversion
Cost Yes or No

Period or
Product
Cost

Variable or Direct or
Fixed
indirect
cost

Yes

Period...

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