Edward Co. is a nutritional supplement firm that sells protein bars containing three substitutable materials: Vegan chocolate chips (‘Chips’), Pea protein (‘Pea Protein’) and Macha derivatives (‘Macha’). Standard cost information is as follows: Amount needed for 1 protein bar Cost per protein bar Chips 2g at €0.25 per gram €0.50 Pea Protein 1g at €2 per gram €2.00 Macha 1.6g at €0.75 per gram €1.20 It was budgeted that 8,000 protein bars would be made and sold in April 2021. In April 2021, actual materials information was as follows: Actual cost Chips 15,250 grams at €0.26 per gram €4,056 Pea Protein 8,000 grams at €1.90 per gram €15,200 Macha 12,480 grams at €0.70 per gram €8,736 €27,992 Actual output for the period was 7,800 protein bars.

“There are many motivational factors that influence managers in their actions to eliminate variances from their budgets. Some of these are dysfunctional.” Prepare a briefing note to Edward Co.’s Chief Executive, outlining the tactics managers can engage in during the budget preparation process to reduce the likelihood of adverse variances. Your note should also outline steps that senior executives can take to discourage / mitigate against these tactics.

Answer rating: 100% (QA)

a PRODUCT STANDARD FOR 1 BAR STANDARD FOR 7800 BARS ACTUAL FOR 7800 BARS QUANTITY RATE AMOUNT QUANTI... View the full answer