Question

A performance report that compares budgeted and actual profit in the sporting goods department of Maxwell’s Department Store for the month of December follows:


Required
a. Evaluate the department in terms of its increases in sales and expenses. Do you believe it would be useful to investigate either or both of the increases in expenses?
b. Consider storewide electricity cost. Would this cost be a controllable or a noncontrollable cost for the manager of sporting goods? Would it be useful to include a share of storewide electricity cost on the performance report for sportinggoods?


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  • CreatedSeptember 12, 2013
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