Ron Abrams, VP Operations for Wilson Bros. has come wandering into your office muttering under his breath (clearly exasperated) after reading the financial statements for one of the plants in Western Europe. After composing himself somewhat he says, "How can a Canadian finance executive sign off on these statements? They look nothing like any statement Ive seen in Canada before! I know we paid a translator to present these in English, but I cannot make heads or tails of these. Are we profitable there or not?"

Ron is back in your office this week for a regular update on the projects you have been working on. His comment this week is "You know, I've been going through cost classifications all week with our accounting team in terms of profit, cost, and investment centres. Do you know what they had the audacity to classify HR as?"

Can you tell Ron the appropriate answer and explain how you would measure the performance of the type ofcost in which HR has been placed? (8 marks)

Provide constructive feedback to at least two other students' postings. (2 marks)

Ron's been buried in sales agents' meetings and dialog with some US regional managers for three straight days and it seems they have the opportunity to buy a new bottling plant that could significantly decrease their cost of production for drinks. He arrives in your office for your weekly meeting and proudly says "After all is said and done buying this bottling plant makes good sense - It will cost less than the one we bought last year."

Why is the rationale for the decision not necessarily an appropriate one? What else needs to be considered? (8 marks)

Provide constructive feedback to at least two other students' postings. (2 marks)