A profit centre manager claims that the poor performance of her division is entirely due to factors outside her control. She has submitted the following table along with notes from a market expert, which she believes explains the cause of the poor performance: After adjusting for the external factors outside the manager’s control, in which category/categories is there evidence of poor performance?
A、Material cost only
B、Sales volume and sales price
C、Sales price and material cost
D、Sales price only
A、Material cost only
B、Sales volume and sales price
C、Sales price and material cost
D、Sales price only
【参考答案及解析】
The material price when flexed is higher than budget whilst the external environment shows that prices are reducing. This indicates that although suppliers lowered their prices, the manager has still overspent which indicates poor performance. When sales volumes and prices are flexed, it can be seen that the manager has performed better.
The material price when flexed is higher than budget whilst the external environment shows that prices are reducing. This indicates that although suppliers lowered their prices, the manager has still overspent which indicates poor performance. When sales volumes and prices are flexed, it can be seen that the manager has performed better.