He believed the business performed well during the year and plant availability and fuel economy had improved over the prior year. However, the positive performance does not show in the fiscal results and he should inquire before presenting to the board.
He contemplates performing a discrepancy analysis to improved understand plant functionality when compared with the prior year. The business had been victorious at selling excess electricity to the power plant but over the last 12 months, demand has declined. Pupils must complete a quantitative analysis of the functionality of the plant and prepare recommendations to enhance assessment and coverage of the performance of the plant. This case can be used in an introductory managerial accounting course to explore variance analysis and incentives in contracts.
PUBLICATION DATE: January 29, 2013 PRODUCT #: 913533-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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