Question: Compagnie du Froid, S.A. https://hbsp.harvard.edu/import/895893 1.Identify budgeted unit cost and unit price information and compare with actual results (i.e., budgeted unit cost, budgeted unit price,

Compagnie du Froid, S.A.

https://hbsp.harvard.edu/import/895893

1.Identify budgeted unit cost and unit price information and compare with actual results (i.e., budgeted unit cost, budgeted unit price, actual unit cost, actual unit price) for each division. Please interpret your findings.

2.Compare and evaluate each of the three businesses using variance analysis. Please interpret variances and discuss the impacts of weather, market share, product price, and transfer pricing. (i.e., comparing budgets based on actual temperature, budgets based on projected temperature, and actual results may help to evaluate the impact of weather; flexible budgets based on actual sales volumes may help to evaluate operating efficiency)

3.Evaluate the performance of three managers who run the businesses and suggest how to distribute compensations among the three managers. Please discuss the controllability, short-term vs. long-term measures of performance, division vs. company-wide results, evaluation of strategic decisions. Please also discuss the distribution business in France.

4.Identify any behavioral effects of standard costing in this case.

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