He also suggested breaking down the unfavorable manufacturing variance to indicate what main corrective actions are called for in 2001.
For example, he said, how much of the total was due to price differences versus quantity differences? Since the division was a pure "price taker" for commodities like milk and sugar, he wondered how to best treat the price variances.
Finally, he suggested that Frank call on John Vance, the corporate controller, if he needed some help in the mechanics of breaking out these different variances.
He also suggested breaking down the unfavorable manufacturing variance to indicate what main corrective actions are called for in 2001. For example, he said, how much of the total was due to price differences versus quantity differences? Since the division was a pure "price taker" for commodities like milk and sugar, he wondered how to best treat the price variances. Finally, he suggested that Frank call on John Vance, the corporate controller, if he needed some help in the mechanics of breaking out these different variances.
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