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Preparing Accounting Performance Reports

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21-4B - Aaron Braun, the plant manager of SOS Co.'s Chicago plant, is responsible for all the plant's costs other than his own salary. The plant has two operating departments and one service department. The refrigerator and dishwasher operating departments manufacture different products and have their own managers. The office department, which Braun also managers, provides services equally to the two operating departments. A monthly budget is prepared for each operating department and the office department. The company's responsibility accounting system must assemble information to present budgeted and actual costs in performance reports for each operating department manager and the plant manager. Each performance report includes only those costs that a particular operating department manager can control: raw materials, wages, supplies used, and equipment depreciation. The plant manager is responsible for the department managers' salaries, utilities, building rent, office salaries other than his own, and other office costs plus all costs controlled by the two operating department managers. The April departmental budgets and actual costs for the two operating departments follow.

(see attached file for chart)

The office department's budget and its actual costs for April follow.
Budget Actual
Plant manager salary $80,000 $85,000
Other office salaries 40,000 35,200
Other office costs 21,000 29,800
Totals $141,000 $150,000

Required
1. Prepare responsibility accounting performance reports like those in Exhibit 21.28 that list costs controlled by the following.
a. Manager of the refrigerator department.
b. Manager of the dishwasher department.
c. Manager of the Chicago plant.
In each report, include the budgeted and actual costs for the month and show the amount by which each actual cost is over or under the budgeted amount.
Analysis Component
2. Did the plant manager or the operating department managers better manage costs? Explain.

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21-4B - Aaron Braun, the plant manager of SOS Co.'s Chicago plant, is responsible for all the plant's costs other than his own salary. The plant has two operating departments and one service department. The refrigerator and dishwasher operating departments manufacture different products and have their own managers. The office department, which Braun also managers, provides services equally to the two operating departments. A monthly budget is prepared for each operating department and the office department. The company's responsibility accounting system must assemble information to present budgeted and actual costs in performance reports for each operating department manager and the plant manager. Each performance report includes only those costs that a particular operating department manager can control: raw materials, wages, supplies used, and equipment depreciation. The plant manager is responsible for the department managers' salaries, utilities, building rent, office salaries other than his own, and other office costs plus all costs controlled by the two operating department managers. The April departmental budgets and actual costs for the two operating departments follow.
Budget Actual
...

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Recognizing Excellence in Performance Reporting by Eveanna Barry, MS 68 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT FALL 2010

The discussion papers should summarize and analyze the main points put forward by the author of the attached article. Do you agree or disagree with the author, and what is the basis for your position? Include additional research and thoughtful synthesis of the authors ideas with your ideas.

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Twenty-one reports were received
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The black-tie event was held at the
By: Eveanna Barry, MS
68 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT FALL 2010
Recognizing
Excellence in
Performance
Reporting
certificate of
excellence in
accountability
reporting®
presented to the
in recognition of your outstanding efforts
preparing SSa's performance and
accountability report for the fiscal
year ended September 30, 2009.
A Certificate of Excellence in Accountability Reporting is presented
by AGA to federal government agencies whose annual
Performance and Accountability Reports achieve the
highest standards demonstrating accountability
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U.S. Social
Security
Administration
Relmond P. Van Daniker, DBA, CPA
Executive Director, AGA
John H. Hummel, CGFM
Chair, Certificate of Excellence
in Accountability Reporting Board
The....see more attached.....

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