The manager of the manufacturing unit of a company is responsibie for the costs of the manufecturing unit. The president is in the process of declding whether to evaluate the manager at the manufacturing unit by the average cost per unit or the varlable cast per unit Quality and Urmiely delivery would be used in corsuncton with the cust meesure lo rewerd the maneger Required: a. What probiems are associated with using the average cost per unit as a pertormance measure b. What problems are associated with using the variable cost per unt as a performance measure?
The manager of the manufacturing unit of a company is responsibie for the costs of the manufecturing unit. The president is in the process of declding whether to evaluate the manager at the manufacturing unit by the average cost per unit or the varlable cast per unit Quality and Urmiely delivery would be used in corsuncton with the cust meesure lo rewerd the maneger Required: a. What probiems are associated with using the average cost per unit as a pertormance measure b. What problems are associated with using the variable cost per unt as a performance measure?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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