Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. timothy is a production manager for bestmode a cl

Timothy is a production manager for BestMode a clothing company in News South Wales....

70.2K

Verified Solution

Question

Accounting

Timothy is a production manager for BestMode a clothing company in News South Wales. He is often asked to participate in the companys annual budgeting process. Sofia -the Chief Executive Officer has requested Timothy to submit his departments budgeted production for the coming year. Sofia reviews and typically adds 12 percent to the production budget provided by Timothy. The adjusted amount becomes Timothys target production level for the budgeted year. Accordingly, Timothy can receive a cash bonus if his department exceeds the projected production level. Required:

a. Explain any incentive that Timothy might have to be dishonest with Sofia about the production level he thinks the department can achieve. [5 marks]

b. Explain the impact Timothys inaccurate production estimates could have on other company departments or employees. [5 marks]

c. Suggest what should be done to prevent a manager from providing inaccurate budgets which can easily achieved. [5 marks]

chapter: management accounting

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Find the steady-state current ip(t) in an LRC-series circuit when L = 1/2 h, R =...

Physics
1.2K views

1. What is the relationship between the history of the hearsay rule and the history of...

Operations Management
1.2K views

Should Prescription Drugs be Allowed to be Advertised Directly to Consumers? Yes No The question of whether DTCA should...

Physics
1.2K views

If R and L are resistance and inductance of choke coil and f is the...

Physics
1.2K views

In the figure m m 1 kg Block A is neutral while q 1C sizes...

Basic Math
1.2K views

Find the inverse of the given elementary matrix 1 0 0 1 0 0 0...

Calculus
1.2K views

To solve the following nonlinear system by eliminating y terms what number should equation 2...

Calculus
1.2K views

ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that...

Algebra
1.2K views

2 x 1 1 0 lect all of the exponential functions 0 0 5 f...

Accounting
1.2K views

Concord Corporation is preparing its December 31,2023 statement of financial position and is...

Accounting
1.2K views

Question 7 Not yet answered Marked out of 1.00 Flag question ...

Accounting
1.2K views

Constantine Corporation reported Net Income for the year ended December 31, 20X1, of $23,620 then...