Reference no: EM132605335

Problem 1: Assume you're an operations manager who has been working at ABC Company for the past month. You have recently found out that the company has never set a budget plan for their productions. Due to the lack of budget plan, the company was not able to communicate their objectives in an efficient way therefore was not able to evaluate the performance at departmental level. In order for you to be able to convince the top management that a budget plan is essential for every company, you are required to clearly state the benefits of budgeting to them. Furthermore, you are to explain the three different types of budgeting that the company may adopt and explain which type do you think is more effective.

Problem 2: Company Arwin, have been setting standards on prices which helped them specify how much should be paid for each unit of the input but have failed to set a quantity standard. As an employee, you are required to convince the management that setting a quantity standard is also important for a more efficient measurement of the company's performance.