1. Why is it important for the company to have an effective cost management system? Identify the strengths and weaknesses of the current managerial accounting system.

2. What are some strategies or decisions that management uses or should use in trying to solve issues presented. Concepts to consider include, flexible budget, differental analysis, and standard costs and variances.

3. Recommend a solution for the issues to management.

Waltham Motors Division When Sharon Michaels arrived at her office at Waltham Motors division on June 4, 2004, she was pleased to find the monthly performance report for May on her desk. Her job as division controller was to analyze results of operations each month and to prepare a narrative report on operations that was to be forwarded to the corporate headquarters of Marco Corporation