A bank manager of Citizens Bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trust Commercial Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The budget and actual results for the Operations Department are as follows:

a. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager?
b. What information does the budget fail to provide? Specifically, could the budget information be presented differently to provide even more insight for the bankmanager?

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Resources Budget Actual Salaries $150,000 150,000 Supplies Travel Training Overtime Total 30,000 45,000 20,000 25,000 25,000 $295,000 30,000 35,000 20,000 $307,000 Excess of actual over budget 12,000