The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues butwas happy with the result of his control performance which were all favorable, otherwise his net operatingincome would be much lower.The Vice President for operations is not satisfied with the performance report of the Tuguegarao CityBranch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao Citybranch manager.The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter endingMarch 31, 2021 is shown below:Cagayan Transport CompanyTuguegarao City BranchPERFORMANCE REPORTFor the Quarter Ending March 31, 2021BudgetP800.000ActualP760.000VarianceP40.000 URevenuesVariable Costs:Gas & OilRepairsSuppliesPayrollTotalFixed Costs:SupervisionRentDepreciationOthersP 60,00080,00080,000402.000P 622.000P 56,80078,40078,800390.000P 604.000P 3,200 F1,600 F1,200 F12.000 FP 18.000 FP 16,00016,00048,00016.000P 718.000P 82,000P 16,00016,00048,00016.000P 700.000P 60,000Total CostsOperating IncomeP 18.000 FP 22,000 UREQUIRED:1. Prepare a columnar flexible budget for expected costs at P720,000, P760,000, P800,000 andPS40,000 levels of revenue. Include both variable and fixed costs in the budget.2. How does Tuguegarao City Branch fair based on 95% level 95% level of operation in measuringits control performance over variable costs?

Budgeting - It is the statement showing future estimated cash inflows and cash outflows of the…

The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues but was happy with the result of his control performance which were all fayorable, otherwise his net operating income would be much lower. The Vice President for operations is not satisfied with the performance report of the Tuguegarao City Branch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao City branch manager. The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter ending March 31, 2021 is shown below:

The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues but was happy with the result of his control performance which were all fayorable, otherwise his net operating income would be much lower. The Vice President for operations is not satisfied with the performance report of the Tuguegarao City Branch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao City branch manager. The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter ending March 31, 2021 is shown below:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

dear tutor, kindly assist me to answer this question. management accounting subject
Gadubhai
Racxel PLC is a multi-divisional organisation manufacturing four different product lines. The directors of Racxel are worried about its costing and performance management systems which are based around absorption costing and financial ratio analysis. Required:Draft a briefing note to the Directors of Racxel that discusses: a.The benefits of replacing absorption costing with activity-based costing b.The weaknesses associated with traditional, financially focused performance measurement systems like ratio analysis c.The benefits of using the economic value added (EVA) system
Blue is the controller at the Acme Shoe Company, a large manufacturing company located in Franklin, Pennsylvania. Acme has many divisions, and the performance of each division has typically been evaluated using a return on investment (ROI) formula. The return on investment is calculated by dividing profit by the book value of total assets.In a meeting yesterday with Bob Burn, the company president, Blue warned that this return on investment measure might not be accurately reflecting how well the divisions are doing. Blue is concerned that by using profits and the book value of assets, division managers might be engaging in some short-term finagling to show the highest possible return. Bob concurred and asked what other numbers they could use to evaluate division performance.Blue said, ‘‘I’m not sure, Bob. Net income is not a good number for evaluation purposes. Because we allocate a lot of overhead costs to the divisions on what some managers consider an arbitrary basis, net…
Solve with Explanation and Do not Give image format
The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank’s variousbranches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions.The Westfield branch of Security Home Bank has submitted the following cost data for last year:…
10.2 Explain how independent performance evaluation procedures are either violated or ef- fectively applied in each of the following situations. Identify the problem and suggest the check required (or applied) to prevent the identified problem from occurring. a. The manager who oversees the corporate fleet vehicles signed off on the purchase of 15 luxury SUVs to expand the company's fleet of cars. As soon as this was done, he instructed that the payment be made. b. At a newly opened local restaurant, waiters work six-hour shifts. There are three six- hour shifts per day, with each shift overlapping the next. The restaurant currently has two cash registers and these can be operated by any one of the waiters during a shift without them requiring any form of identification. The new manager has decided that the cash in the cash register box will be checked once every 24 hours, i.e., in the mornings before the new shift for the day begins. c. A company's financial clerk does a spot check of…
For each of the following, select its best description. A. Incurs costs without directly yielding revenues. B. Costs that a manager has the ability to affect. C. Incurs costs and also generates revenues. D. Holds manager responsible for revenues, costs and major investing decisions. E. Lists actual costs a manager is responsible for and their budgeted amounts. F. Unit managers make decisions and top management then evaluates the performance of unit managers. 1. Decentralized organization 2. Controllable costs 3. Responsibility accounting performance report 4. Profit center 5. Investment center 6. Cost center
Which TWO of the following problems associated with performance measurement in a public sector organisation are true? There are usually multiple objectives which makes it difficult to prioritise a primary objective O These organisations often provide services for which it is difficult to define a cost unit These organisations are not often subjected to strong political influences over their activities Lack of a profit measure leads to lack of focus and difficulty in measuring performance
Xerox Corporation has been an innovator in its responsibility-accounting system. In one initiative, management changed the responsibility-center orientation of its Logistics and Distribution Department from a cost center to a profit center. The department manages the inventories and provides other logistical services to the company s Business Systems Group. Formerly, the manager of the Logistics and Distribution Department was held accountable for adherence to an operating expense budget. Now the department "sells" its services to the company s other segments, and the department s manager is evaluated partially on the basis of the department s profit. Xerox Corporation s management feels that the change has been beneficial. The change has resulted in more innovative thinking in the department and has moved decision making down to lower levels in the company. Required: Comment on the new responsibility-center designation for the Logistics and Distribution Department.
What is the most likely consequence of unethical behaviours by management accountants? Satisfied suppliers Customers paying less for products Resource allocation from the budgeting process in organisations being done inequitably Employees experiencing higher job satisfaction
Evaluate this using the principles of management and cost accounting.