1. What was the companys value proposition to customers and why did the company appear to be more successful when Trueblood was in charge?
2. What are the potential roles budgeting can play in an organization?
3. Contrast the pros and cons of Truebloods budgeting and performance measurement system with Madeline Boschs new system in the context of MHL. this will be an early question in the class, so think about it.
4. Based on case information, list three performance measurement and performance-based incentive problems at MHL. The problems should be linked to the control aspect of budgeting and extend to performance measurement and incentive compensation. For each problem, provide one solution.
5. Was it reasonable for the production manager, Creatore, to be faulted for exceeding the budgeted monthly production cost of $2,379,250? Why or why not? Based only on information provided in the case, give at least two reasons to justify your answer. Prepare a revised performance report for August that is more appropriate for measuring the production departments performance.
6. Advise on optimal budgeting and performance measurement systems for MHL, considering all the relevant information provided in the case.