Case on western pants

Orices out there to generate the information we desperately need when we need it. Another thing-some of the plants have been built in the last five years or so and have much newer equipment, yet there's no difference in the budgeted hours calculated for these plants and the older ones. This puts the managers of older plants at a terrific disadvantage. Their sewing machines break down more often, require maintenance, and probably aren't as easy to work with." Required 1. Describe the steps and the process of developing cost budgets for operations within a plant at Western Pants? 2. For what purposes do managers at Western Pants use budgets? 3. With respect to plant operations, what decisions are made by headquarters and what decisions are made by plant managers? Do you regard plant managers as cost centers or profit centers? 4. What problems at the plants result from the budgeting system and why? 5. What changes in Western's budgeting and responsibility accounting system would you recommend? ^ r of a n o Orices out there to generate the information we desperately need when we need it. Another thing-some of the plants have been built in the last five years or so and have much newer equipment, yet there's no difference in the budgeted hours calculated for these plants and the older ones. This puts the managers of older plants at a terrific disadvantage. Their sewing machines break down more often, require maintenance, and probably aren't as easy to work with." Required 1. Describe the steps and the process of developing cost budgets for operations within a plant at Western Pants? 2. For what purposes do managers at Western Pants use budgets? 3. With respect to plant operations, what decisions are made by headquarters and what decisions are made by plant managers? Do you regard plant managers as cost centers or profit centers? 4. What problems at the plants result from the budgeting system and why? 5. What changes in Western's budgeting and responsibility accounting system would you recommend? ^ r of a n o