Greg's Electronics manufactures circuit boards for computer-controlled appliances for the home. The sales have been very volatile, sometimes stressing the plant's capacity, and sometimes depressingly slow. During a recent slow period, Larry Flower, a production supervisor, complained to you, the accounting manager, about the budget.
"I try as hard as I can to meet the budget," he says, "and then I find out that just meeting the budget's not good enough. Last month, when production kept up with sales and we sold 8,000 units, I was $10,000 under my budget. Then you all blow me out of the water with your report that I actually was $6,400 over budget because sales, and therefore production, was slow. I thought this responsibility accounting business was supposed to mean we are held accountable just for things we can control. How do we control sales? At the beginning of the year, you gave us all targets. Mine says that for an average month of 10,000 units sales, I should spend about $82,000. I spend less, and get an unfavorable budget report. What gives?
Instructions:
Write a memo to respond to Mr. Flower.