You are provided with the profit centre responsibility accounting reports for Volanta’s Department Stores.

Required

(a) Explain the relationship between the three profit responsibility reports for Volanta’s Department Stores.

(b) Explain to whom the three managers who receive the reports for Volanta’s Department Stores are responsible.

(c) Assuming Volanta’s Department Stores investigates variances in excess of 5% of budget, outline which items each of the three managers shown are likely to focus on in their respective reports and suggest what non-financial information would also be useful in investigating these variances.

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General manager's report Clothing department Homewares department Electrical department Furniture department Total Homewares manager's report Linen Cookware Cushions Pictures and prints Total Cookware manager's report Frying pans Cooking utensils Crockery Cutlery Glassware Total U indicates an unfavourable variance. F indicates a favourable variance. Budget ($'000) Actual ($'000) Variance ($'000) $ 3400 $ 3450 $ 50 F 5200 4 800 400 U 2800 2900 100 F 4600 4000 600 U $16000 $15150 $850 U 1200 1300 100 F 2800 2500 300 U 600 550 50 U 600 450 150 U $ 5200 $ 4800 $400 U 600 620 20 F 480 440 40 U 720 600 120 U 600 620 20 F 400 220 180 U $ 2800 $ 2500 $300 U