Question
In some organizations, cost center managers have been known to achieve favorable budget variances by cutting labor and other operating costs to the point where
In some organizations, cost center managers have been known to achieve favorable budget variances by cutting labor and other operating costs to the point where services are not being performed in an adequate and timely fashion. This problem can best be reduced by:
a) Avoiding the use of cost variances in evaluations
b) Evaluating cost centers on the basis of ROI/ROA rather than cost variances.
c) Using effectiveness measures as well as cost measures in evaluation.
d) Avoiding the use of performance evaluations in compensation decisions.
Step by Step Solution
3.44 Rating (147 Votes )
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided below c Using effecti...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App