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Negative Variations in Performance Assessments Discussion Responses

Write a reply minimum of 150 words for each discussion1 and discussion 2 

Discussion 1:It seems to be like Tom Kemper has been a solid stature of discipline who likes to complete every task given to him in a timely manner. The one thing that I noticed in the case study is the impatient nature of Tom. Although it is an undeniable fact that staying up to the mark and completing the task allotted prior to the deadlines is the topmost priority but on other hand, being impatient can equally disrupt the flow of work in a destructive manner. For example, I totally believe that if the report is to be completed at the end of the year evaluating all the data for a total of 365 days even the slightest margin of error could make a big difference in the report. Since Tom is preparing the report a week in advance, that thoroughly signifies that he is being negligent of the remaining 7 days including the holidays. There are chances that in the last week of the year an awful incident might happen, and the company has to bear some expenses which will not be reflected in the report since the report is made prior to the end of the year.

Another thing that caught my attention was the expenditure spent on additional charges punched by the contractor. It seems to me like the manager in charge is not aware of the charges being pressed and the work on the opposite hand that has been carried out in the company. It is thereby the responsibility of Tom to make the manager aware of the expenses involved in the process of troubleshooting the defects associated with the machinery. A notion of spending rather than saving can be concluded from this case study. a detailed budget must have been drafted prior to the operations which in this case is somehow missing. Now that the situation has gone worse and cannot be amended, the least Tom could do is stay true to the facts derived from the data and present it without any hesitation.  An analysis needs to be performed so that incidents like this can be predicted and dealt with in a prompt manner in the future. On top of that Tom needs to maintain his composure and deal with such situations responsibly so that a lot of work can be done in a timely manner instead of rushing it to get done.


Managerial Accounting for Managers, Eric W Noreen, Case 9-27, Pg 493, Ethics and the manager.

Lucas D. Introna, IIPDM, April 2019, Ethics – What is the Manager’s responsibility?… 

Discussion 2:

The presence of negative variances in performance evaluations of specific divisions of an organization should not raise any potential problems if they are appropriately explained with all relevant facts. Unfavorable variations, such as reducing actual operating expenses compared to what was planned or increasing substantially, were budgeted. The management may adjust the standard or budget for that line item related to the level of expenditures. There is a justification for depreciation increases, which are not likely to occur every year, or the perfectly explainable increase in industrial engineering, as with the Wichita site. Costs result from some additional work provided by the company, necessitates recasting the standard. Given the preceding, Tom should encourage Melissa to use accurate or actual performance data and the additional industrial engineering. Accounting is the only practical, ethical technique that helps in assisting a firm in the long run, rather than thinking on a short-term scale. Manipulation of data currently will have no impact on the company’s overall financial goals, as the corporate office may be unaware of the section’s additional resource requirements. Genuine cases do not need to be hidden in reports or postponed. The corporate office trusts the supervisor by reporting on the actual performance of the sections under his care so that corrective steps can be implemented as soon as possible to help the company achieve its objectives.

References: Managerial Accounting for Managers, Eric W Noreen, Case 9-27, Pg 493, Ethics and the manager.


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