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Review the case (Attached below). Respond to the following:
• Identify the problems that appear to exist in Ferguson & Son Manufacturing Company's budgetary control system and explain how the problems are likely to reduce the effectiveness of the system. (approximately 1 page)
• Explain how Ferguson & Son Manufacturing Company's budgetary control system could be revised to improve its effectiveness. (approximately 1-2 pages)
• Explain how the use of an activity-based costing system could change the results of the budget. if utilized. (approximately 1 page)
• As stated in the case, many employees have "quit trying" and have altered behavior on the job. Provide specific ways for how you would use a budget to change employee behavior and align goals in the organization. Explain how goal alignment can improve profitability and overall return to the shareholders of the company. (approximately 1 page)
• Synthesize data to explain the concept of ROI and describe how the use of an activity-based costing system can improve the company's ROI and the potential impact on free cash flow. (approximately 1 page)
Attachment:- Case-Tom and Jim.rar
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