You are required to: a. Set out the order of profit effectiveness of the salesmen based on: their actual performance only their achievement when compared with budgeted targets i. ii. b. Show the total impact on the company profit of the salesmen's results presented in a way that you consider most useful to management c. Comment very briefly on the performance of salesmen B and D. Note: No more than five lines of writing on each is required.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

please assist below question

The budgeted sales, excess over production costs and variable selling expenses for each
salesman together with actual achieved during the period are shown below:
Sales
A
BCDE
D
Budget
R
63 000
69 500
49 000
66 000
52 500
Actual
R
60 000
65 000
48 000
68 000
55 000
Excess over production Variable selling
costs as % sales
expenses
Budget
%
40
40
40
40
40
Actual
%
38
41
42
37
39
Budget
R
8 820
11 120
7 100
9 900
8 400
E
You are required to:
a. Set out the order of profit effectiveness of the salesmen based on:
i.
their actual performance only
ii.
their achievement when compared with budgeted targets
Actual
R
11 000
10 800
7 150
10 050
7 950
b. Show the total impact on the company profit of the salesmen's results presented in
a way that you consider most useful to management
c. Comment very briefly on the performance of salesmen B and D.
Note: No more than five lines of writing on each is required.
Transcribed Image Text:The budgeted sales, excess over production costs and variable selling expenses for each salesman together with actual achieved during the period are shown below: Sales A BCDE D Budget R 63 000 69 500 49 000 66 000 52 500 Actual R 60 000 65 000 48 000 68 000 55 000 Excess over production Variable selling costs as % sales expenses Budget % 40 40 40 40 40 Actual % 38 41 42 37 39 Budget R 8 820 11 120 7 100 9 900 8 400 E You are required to: a. Set out the order of profit effectiveness of the salesmen based on: i. their actual performance only ii. their achievement when compared with budgeted targets Actual R 11 000 10 800 7 150 10 050 7 950 b. Show the total impact on the company profit of the salesmen's results presented in a way that you consider most useful to management c. Comment very briefly on the performance of salesmen B and D. Note: No more than five lines of writing on each is required.
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Cost management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education