Purchase Solution

Materials and Labour Budget Revisions: Give arguments

Not what you're looking for?

Ask Custom Question

Discuss each request below for a budget revision, putting what you see as both sides of the argument and reach a conclusion as to whether a budget revision should be allowed.

Materials:

A local material supplier was forced into liquidation. Criss-cross' buyer managed to find another supplier, 150 miles away at short notice. This second supplier charged more for the material and a supplementary delivery charge on top. The buyer agreed to both the price and the delivery charge without negotiation. 'I had no choice, the buyer said, the production manager was pushing me very hard to find any solution possible!' Two months later, another, more competitive local supplier was found.A budget revision was being sought for the two months where higher prices had to be paid.

Labour:

During the early part of the year, problems had been experienced with the quality of work being produced by the support staff in the labour force. The departmental manager had complained in his board report that his team were 'unreliable, inflexible and just not up to the job'.

It was therefore decided, after discussion of the board report, that something had to be done. The company changed its policy so as to recruit only top graduates from good quality universities. This has had the effect of pushing up the costs involved but increasing productivity in relation to that element of the labour force.

The support staff departmental manager has requested a budget revision to cover the extra costs involved following the change policy.

Purchase this Solution

Solution Summary

Your discussion is 300 words and explains why the budget should not be revised for either of these events.

Solution Preview

Materials:

A local material supplier was forced into liquidation. Criss-cross' buyer managed to find another supplier, 150 miles away at short notice. This second supplier charged more for the material and a supplementary delivery charge on top. The buyer agreed to both the price and the delivery charge without negotiation. 'I had no choice, the buyer said, the production manager was pushing me very hard to find any solution possible!' Two months later, another, more competitive local supplier was found.A budget revision was being sought for the two months where higher prices had to be paid.

ARGUMENT FOR REVISION: An external event causes a temporary increase in prices. The local manager should not be penalized for this event.
ARGUMENT FOR NO REVISION: Temporary variations from budget should be explained and those that are ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.