Reference no: EM131191546
Controllability, responsibility, and balanced scorecard
Gerald Neumeier, president of Friedman Corporation, evaluated the performance report of the company's production department. Mr. Neumeier was confused by some arguments presented by Elaine Grayson, the production manager. Some relevant data follow.
|
Variances
|
Amount
|
|
Materials usage variance
|
$400,000 U
|
|
Materials price variance
|
240,000 F
|
|
Labor price variance
|
76,000 F
|
|
Labor usage variance
|
276,000 U
|
|
Volume variance
|
600,000 U
|
Ms. Grayson argues that she had done a great job, noting the favorable materials price variance and labor price variance. She argued that she had had no control over factors causing the unfavorable variances. For example, she argued that the unfavorable materials usage variance was caused by the purchasing department's decision to buy substandard materials that resulted in a substantial amount of spoilage. Moreover, she argued that the unfavorable labor usage variance resulted from the substantial materials spoilage which in turn wasted many labor hours, as did the hiring of under qualified workers by the manager of the personnel department. Finally, she said that the sales department's failure to obtain a sufficient number of customer orders really caused the unfavorable volume variance.
Required
a. What would you do first if you were Gerald Neumeier?
b. Did Ms. Grayson deserve the credit she claimed for the favorable variances? Explain.
c. Was Ms. Grayson responsible for the unfavorable variances? Explain.
d. Explain how a balanced scorecard can be used to improve performance evaluation.
|
Estimate the stresses at a depth of 20 m below ground
: Estimate the stresses at a depth of 20 m below ground surface at each of the following locations: (0,0), (0, 15), (6,0), (6, 15), and (10,25); obtain values by both Boussinesq and Westergaard methods, and also determine the ratio of the stresses a..
|
|
What is the loss in producer surplus
: Assume that Qd = 80-2P and Qs = 2P-20 and the market is in equilibrium. If the government imposes a price ceiling at $20 in this market, what is the loss in producer surplus?
|
|
Analyze at least three such vulnerabilities
: Examine whether your risk assessment methodology is quantitative, qualitative, or a combination of these, and discuss the main reasons why you believe that the methodology that you utilized was the most appropriate.
|
|
Compute the depth of an excavation to cause a reduction
: Given the data of Example 8.22. Instead of a load on the surface, compute the depth of an excavation to cause a reduction in stress at the bottom of the excavation of 250 kPa if p - 2 Mg/m3. The excavation plan area is shown in Fig. Ex. 8.22a.
|
|
What would you do first if you were gerald neumeier
: What would you do first if you were Gerald Neumeier?- Did Ms. Grayson deserve the credit she claimed for the favorable variances? Explain.
|
|
Estimate the compression and recompression indices
: estimate the compression and recompression indices and both modified in-dices for as many of the clays of Fig. 8.8 as you can. How well do the empirical relationships agree with the laboratory data? 8-30. Do Problem
|
|
Ensure effective and reliable forecasting
: To ensure effective and reliable forecasting, the following aspects must be considered External factors, contractual obligations, internal control and,ethical business practices.
|
|
Evaluate the preconsolidation pressure
: Evaluate the preconsolidation pressure and the modified virgin compression index.
|
|
What factor may have tipped off the investor group
: What factor may have tipped off the investor group that something was wrong? In what way would those investors have been harmed? If Allen had attracted enough equity capital, do you think he would have been able to conceal the scheme?
|