Written Assignment
Phil and Jim were roommates in college and have always competed against each other. Since graduating from college, both men were hired at the same company. The company pays bonuses at the end of year based on performance, which also includes a weekend on their boss's yacht. Two years in a row Phil managed to surpass Jim's performance. This year, Jim is determined to get the highest bonus. Imagine you are the accountant and knowing that these two men are rivals, answer the following questions in 2 pages
1. Compare and contrast job order and process costing.
2. Determine which costing method would make it easier to detect budget variances or discrepancies.
3. Identify the steps in the budget process most susceptible to manipulation. Discuss at least two steps where budget discrepancies would be difficult to detect by managers.
4. Propose the goals that should be measured on the corporate score card to ensure that bonuses are paid to the manager making the greatest financial contribution.
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Phil
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Jim
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Corporate
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Revenues
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100,000.00
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90,000.00
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|
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Fixed costs
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2,000.00
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4,000.00
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|
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VOH
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45,000.00
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32,000.00
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|
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DM
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15,000.00
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12,000.00
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|
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DL
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30,000.00
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28,000.00
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|
5. Based on the year end performance results and the manager' contribution to operating income and contribution margin (see attachment), determine which manager met his/her goals. (Provide calculations on an EXCEL spreadsheet).
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.