Juanita Palencia, newly hired controller of Braxton Industries, had been lured away from a competitor to revitalize

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Juanita Palencia, newly hired controller of Braxton Industries, had been lured away from a competitor to revitalize the controller's department. Her first day on the job proved to be an eye-opener. One of her first interviews was with Bill Belton, production supervisor in the Alberta factory. Belton commented: "I really don't want to talk to anyone from the controller's office. The only time we see those accountants is when our costs go over their budget. They wave what they call a 'performance report,' but it's actually just a bunch of numbers they make up. It has nothing to do with what happens on the shop floor. Besides, my staff can't afford the time to fill out all the paperwork those accountants want, so I just plug in some numbers and send it back. Now, if you'll let me go back to important matters...." Palencia left quickly, but she was already planning for her next visit with Belton.

1. Identify some of the problems in the relationship between the controller's department and the production departments (assuming that the Alberta factory is representative of the production departments). 

2. What should Juanita Palencia do next?

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Related Book For  book-img-for-question

Management Accounting

ISBN: 9780367506896

5th Canadian Edition

Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Howard D Teall, George Gekas

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