1. Outline the strengths and weaknesses of Vershire 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 of the process and present the rationale for each.
3. Should the plant managers be held responsible for profits? Why? Why not?
4. How do you assess the performance evaluation system contained in Exhibits 2 and 3?
5. On balance, would you redesign the management control structure at Vershire Company? If so, how and why?