You are provided with the profit centre responsibility accounting reports for Owen’s Department Stores:

		Budget ($’000)										Actual ($’000)										Variance ($’000)
General manager’s report
Clothing department Homewares department Electrical department Furniture department		$	3 400 5 200 2 800   4 600										$			3 450 4 800 2 900   4 000							$			50 400 100    600		F  U  F  U
Total		$	16 000										$			15 150							$			850		U
Homewares manager’s report
Linen Cookware Cushions Pictures and prints	$		1 200 2 800 600      600									$			1 300 2 500 550      450							$			100 300 50    150		F  U  U  U
Total	$		5 200									$			4 800							$			400		U
Cookware manager’s report
Frying pans Cooking utensils Crockery Cutlery Glassware	$		600 480 720 600     400								$			620 440 600 620     220								$		20 40 120 20     180			F  U  U  F  U
Total	$		2 800								$			2 500								$		300			U

Required

A. Explain the relationship between the three profit responsibility reports for Owen’s Department Stores.

B. Explain to whom the three managers who receive the reports for Owen’s Department Stores are responsible.

C. Assuming Owen’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.