Q1. Identify the problems that appear to exist in Ferguson & Son Manufacturing Company's budgetary control system and explain how the problems are likely to reduce the effectiveness of the system.
Q2. Explain how Ferguson & Son Manufacturing Company's budgetary control system could be revised to improve its effectiveness.
Q3. Explain how the use of an activity-based costing system could change the results of the budget, if utilized.
Q4. As stated in the case, many employees have "quit trying" and have altered behavior on the job. Provide specific ways for how you would use a budget to change employee behavior and align goals in the organization.
Q5. Explain how goal alignment can improve profitability and overall return to the shareholders of the company.
Q6. Synthesize data to explain the concept of ROI and describe how the use of an activity-based costing system can improve the company's ROI and the potential impact on free cash flow.