1. The report doesn't provide a benchmark or standard performance level for key metrics. Without a comparison...

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Question:

1. The report doesn't provide a benchmark or standard performance level for key metrics. Without a comparison to an industry standard or previous performance, it's challenging to assess whether the variances are reasonable or if there are systemic issues within Ken's division.

2. The report combines fixed and variable production expenses, making it difficult to pinpoint the source of cost overruns. This lack of detail hinders effective cost control and targeted improvement efforts.

3. The report only captures a single month's performance. Without trend analysis or a comparison to the budget over several months, it's challenging to identify if the issues are isolated or part of a broader trend.

Sara's remark may create a defensive or demotivating environment for Ken. Instead of fostering open communication, it may lead to a defensive posture, hindering problem-solving. Ken might feel singled out, impacting team morale and collaboration. A more informative report should include Benchmarking data for comparison, clear separation of fixed and variable costs, and lastly, trend analysis over multiple months (Davis and Davis, 2020).

The revised report aims to foster collaboration and improvement rather than placing blame. Ken is more likely to engage positively, focusing on understanding the root causes of the variances and implementing corrective actions. This approach encourages a continuous improvement mindset, aligning individual and team efforts with the overall organizational goals.

Reference Davis,

C. E., & Davis,

E. (2020, March 2). Managerial Accounting, 4th Edition. Wiley.com. https://www.wiley.com/en-us/Managerial+Accounting%2C+4th+Edition-p-9781119577638

Please JUSTIFY or agree/disagree with the writer or answer the above. And please mention if you are justifying,agreeing,disagreeing or answering the above. Thanks

The note should have intext citations. For example, anything with numbers or quotes per paragraph. The intent citation just needs to be the Author's last name and year it was published. Please also include REFERENCES.