Suggest some ways to hold managers accountable for spending overruns. Recommend when capital projects should be abandoned due to subsequent cost overruns. Support your position.© BrainMass Inc. brainmass.com October 17, 2018, 11:43 am ad1c9bdddf
Of course the best way to hold managers accountable is to make it in their personal interest: impact their pay! So, give a bonus for projects that meet or exceed their projections! This means, of course, that managers better be careful about padding their projections in capital budget requests because the actual returns will be compared to them. It will no longer be smart to show a terrific ...
Your discussion gives a policy for holding managers accountable and a policy for recommending when to abandon a project.
River Beverages: Budgeting Process and responsibility accounting
Please see attached file.
Attached is an example I located on the web utilizing a ficticious company. I have included all of the information pertinent in answering the few questions invloved. I believe that I am making this more difficult than I should; however, any assistance you can provide with regard to completing this example would be greatly appreciated. Because I have included additional reading to make completing of the example easier I am adding additional credits as the reading could make it a little more time consuming.
a. Discuss each step in River Beverages' budgeting process. Begin with the division manager's
initial reports and end with the board of directors' approval. Is each step necessary? Explain.
b. Evaluate River Beverages' responsibility-accounting system. Specifically, should the plant
managers be held responsible for costs or profits? Why?
c. Write a report to River Beverages' management stating the advantages and disadvantages of the company's budgeting process. Start your report by stating your assumption(s) about what River Beverages' management wants the budgeting process to accomplish.View Full Posting Details