Discussion questions From the first e-Activity, assess the external factors
Week 6
1a.From the first e-Activity, assess the external factors and policy decisions that multinational companies must consider in developing the production budget and determine what factor has the most significant impact on the financial performance of the operation.
1b. Examine some of the alternatives you would use in developing the production budget to neutralize the impact of potential inventory problems. Provide support for your rationale.
2a.Evaluate whether or not a flexible budget approach dilutes the value of a budget process in the organization.
2b.Evaluate the impact to a business when compensation, such as sales commissions and bonus, are tied to achieving budgeted expectations. Suggest how management can prevent employees from manipulating results.
Week 7
1a.From the first e-Activity, the article indicates approximately 90% of the companies in the study were sensitive to the variances in material prices. Examine the causes of material price variances and the potential impact on pricing decisions.
1b.Examine the reasons service companies are more sensitive to labor and price variances, as compared to material price variances, in the industrial sector and why managing these variances is essential to sustaining profitability.
2a. Create an argument for using a balanced scorecard approach to evaluating business performance considering how you convince management and employees that it is an effective business tool.
2b.Describe the techniques you would employ to determine the effectiveness of a balanced scorecard in your organization.
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