Explain why it might be preferable for Managers not to be involved in setting th-新东方在线职业题库

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Explain why it might be preferable for Managers not to be involved in setting their own budgets when meeting the budget is used as a basis for performance measurement.

Chapter21Performancemeasurement

There is always a very strong temptation for operational managers to set as 'soft7 a budget as possible； so they cannot fail to meet it and so will be assessed positively by senior managers. Soft budgets means that there is a degree of slack in there, so managers are not motivated to achieve their best possible performance, but rather one that is simply adequate.

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What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.

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What does an adverse variable overhead efficiency variance indicate and what might be the cause?
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