Question

Matthew Nixon, president of Nixon Door Products Company, is evaluating the performance of Alex White, the plant manager, for the last fiscal year. Mr. Nixon is concerned that production costs exceeded budget by $40,000. He has available the 2014 static budget for the production plant, as well as the actual results, both of which follow:


Required
a. Convert the static budget into a flexible budget.
b. Use the flexible budget to evaluate Mr. White’s performance.
c. Explain why Mr. White’s performance evaluation doesn’t include sales revenue and netincome.


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  • CreatedFebruary 07, 2014
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