Explain how Ferguson and son manufacturing companys budgetary control system could be revised to improve its effectiveness?
Master tm sorry about that, Tom, but you know my department has had trouble making budget ere running well behind at the time of that problem, and if we'd spent a day on that ne, we would never have made it up. Instead we made the scheduled inspections of the t o . Well. Jim, at least you have some options. I'm locked into what the scheduling depart Emoryns to me and you know they're being harassed by sales for those special orders. Inciden n't your report show all the supplies you guys wasted last month when you were w rucks because we knew we could do those in less than the budgeted time. assigns in Bill's department? and not out of the woods on that deal yet. We charged the maximum we could to othe haven't even reported some of it yet. Well. I'm glad you have a way of getting out of the pressure. The accountants seem t thing that's happening in my department, sometimes even before I do. I thought all th ect and accounting stuff was supposed to help, but it just gets me into trouble. It's all a big pr Emory get ing to put out quality work; they're trying to save pennies. Required 1 Identify the problems that appear to exist in Ferguson & Son Manufacturing Compan getary control system and explain how the problems are likely to reduce the effectiv the system. in how Ferguson & Son Manufacturing Company's budgetary control system revised to improve its effectiveness. CMA CASE 10-30 Master Budget with Supporting Schedules [L04a, L04c, LO4g, LO4h, LO40 You have just been hired as a new management trainee by Earrings Unlimited, a dis earrings to various retail outlets located in shopping malls across the country. In the pas pany has done very little in the way of budgeting and at certain times of the year has e a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehens for the upcoming second quarter in order to show management the benefits that can be an integrated budgeting program. To this end, you have worked with accounting and o gather the information assembled below The company sells many styles of earrings, but all are sold for the same price- Actual sales of earrings for the last three months and budgeted sales for the next six m in pairs of earrings) January (actual) 20,000 June (budget) 50,0 February (actual) 26,000 July (budget)30 40,000 August (budget) 28, March (actual).... April (budget) 65,000 September (budget)25 Master tm sorry about that, Tom, but you know my department has had trouble making budget ere running well behind at the time of that problem, and if we'd spent a day on that ne, we would never have made it up. Instead we made the scheduled inspections of the t o . Well. Jim, at least you have some options. I'm locked into what the scheduling depart Emoryns to me and you know they're being harassed by sales for those special orders. Inciden n't your report show all the supplies you guys wasted last month when you were w rucks because we knew we could do those in less than the budgeted time. assigns in Bill's department? and not out of the woods on that deal yet. We charged the maximum we could to othe haven't even reported some of it yet. Well. I'm glad you have a way of getting out of the pressure. The accountants seem t thing that's happening in my department, sometimes even before I do. I thought all th ect and accounting stuff was supposed to help, but it just gets me into trouble. It's all a big pr Emory get ing to put out quality work; they're trying to save pennies. Required 1 Identify the problems that appear to exist in Ferguson & Son Manufacturing Compan getary control system and explain how the problems are likely to reduce the effectiv the system. in how Ferguson & Son Manufacturing Company's budgetary control system revised to improve its effectiveness. CMA CASE 10-30 Master Budget with Supporting Schedules [L04a, L04c, LO4g, LO4h, LO40 You have just been hired as a new management trainee by Earrings Unlimited, a dis earrings to various retail outlets located in shopping malls across the country. In the pas pany has done very little in the way of budgeting and at certain times of the year has e a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehens for the upcoming second quarter in order to show management the benefits that can be an integrated budgeting program. To this end, you have worked with accounting and o gather the information assembled below The company sells many styles of earrings, but all are sold for the same price- Actual sales of earrings for the last three months and budgeted sales for the next six m in pairs of earrings) January (actual) 20,000 June (budget) 50,0 February (actual) 26,000 July (budget)30 40,000 August (budget) 28, March (actual).... April (budget) 65,000 September (budget)25
