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Explaining Variances in Performance Reports and Suggesting Possible Causes and Remedies

Explaining Variances in Performance Reports and Suggesting Possible Causes and Remedies

Part 1

Read the “Widget Company Performance Report” document, provided with this Assessment. Imagine that you are the manager of the production department at the Widget Company and you have been asked to explain the variances found in a performance report, propose possible causes, and make suggestions for how the variances can be remedied. Using the information provided in the Widget Company Performance Report, prepare a memo to your boss that explains the possible causes of the variances in the performance report, and suggest how the company can remedy them. (1 – 2 pages)

Part 2

As the newly promoted general manager of the Widget Company, you prepared a performance report using Excel and presented this to your boss. (See “Widget Company Performance Report.”) Your boss e-mailed you and asked for more information regarding the usefulness of a flexible budget report to assess performance. Prepare an e-mail to your boss explaining why the flexible budget provides more useful information than a static budget. (3 – 4 paragraphs)


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