ACC3200 Study Guide - Final Guide: Cost Driver, Quality Management System, Gross Margin
30 Jul 2018
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Proportion of cogs to total sales revenue (high or low) External factors such as falling sales due to downturn economic conditions. Proportion of costs not attributed to production i. e. salaries. By involving lower-level employees, greater goal congruence can be achieved. Setting the targets that are considered achievable by employees, greater communication and co-ordination, greater ownership and sense of responsibility for budget targets part of the employees. Employees are going to be made responsible for setting and achieving budget targets that they can exert some degree of control over targets. Managers only held responsible for their centre"s activities and performance that are under their control. Production manager: dm quantity and dl efficiency variance: quality of material purchased, wrong standard set. Human resource manager: dl rate variance: using a mix of employees, change in basic wage levels. As indicated by the total favourable variance compared with unfavourable ones.
