1. Outline the strengths and weaknesses ofVershire Company's planning and
control system.
2. Trace the profit budgeting process at Vershire, starting in May and ending
with the Board of Directors' meeting in December. Be prepared to describe
the activities that took place at each step ofthe process and present the rationale
for each.
3. Shoutd the plant managers be held responsible for profits? Why? Why not?
4. How do you assess the performance evaluation system contained in Exhibits
2 andS?
5. On balance, would you redesign the management control structure at Vershire
Company? If so, how and why?
Total actual variable manufacturing costs *
Manufacturing efficiency :
Total standard