AMA International University BAHRAIN COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES 15 Trimester, AY 2019-2020 FORMATIVE ASSESSMENT CMBA912 COURSE TITLE TIME COURSE CODE SECTION GROUP NAME TEACHER'S NAME MANAGERIAL ACCOUNTING DAYS S ROOM 220 ID NO. DATE DR. CECILIA P. LAGARAS, CPA TOPIC Operational Performance Measurement Course intended Learning Outcomes (CILOs) ACTIVITY TITLE C2. Critically determine and evaluate the role of cost management information to strategically Support management planning and decision making C. Critically analyze, evaluate and interpret costs and other critical success factors to assess the short-term and long-term goals of the organization Formative Assessment ACTIVITY DIRECTION & REQUIREMENTIS Problem 1. You are the Finance Manager of Tylos Corporation. During its monthly meeting the financial performance for the month has been presented as shown below. The management was furious why the net income was only Bhd200,000 instead of Bhd 400,000 Units sold Sales Variable costs Contribution margin Fixed costs Operating income Actual Results 20,000 Bhd2,200,000 1,500,000 700,000 500,000 200,000 Total Master Budget 25,000 Bhd2,200,000 1.200.000 1,000,000 600,000 400,000 1. Explain in details, why there is a variance of Bhd 200,000 in the net operating income. Show the breakdown 2. What do you think are the limitations of short-term financial performance Indicators? 3. Using the same details mentioned in the problem, construct comparative analysis between the Actual and Flexible Budget. Explain why there are variances ACTIVITY OUTPUT . Answer in a separate sheet of paper FACULTY FEEDBACK