To: Mr. Jim Peterson, President, Boston Creamery, Inc., Ice Cream Division
Subject: origination of 1973 Results to Management Committee
Introduction and Executive Summary
Boston Creamery, Inc. has recently utilise a new financial planning and control organization to assist in better managing the budget and planning attend for the organization. A four-step profit planning process was assembled to guide the trouble team in the planning process for 1973. After the books were closed in(p) at the end of 1973, full financial results are for sale from the new system for the startle time. The system allows the comparison of budgeted figures to essential results. heel Roberts, Vice-president for gross revenue and Marketing has been asked to make a shortened presentation on the major variance reasons behind the well-situated operating income variance. The purpose behind the presentation would be to draw areas that consume attention including celebrating the favorable variance items to identification of variances that need to be addressed to working throughout the year in creating a flex budget based on know changes in unit sales, sales mix and costs.
At first glance, Frank seems very elated with the results which certainly validate his sales and Marketing management acumen.
However, upon further analysis excellence from the gross revenue and Marketing departments may not reflect the full invention of what is happening in the Ice Cream market in Boston in 1973. At odds are Frank Roberts and the Vice President for Manufacturing and Operations, John Parker. Mr. Parker believes that his Operations group is world painted in a negative light and would comparable the variance analysis to provide a bit to a greater extent detail than Frank is showing in his initial blueprint presentation.
After detailed analysis, it would appear that there are many another(prenominal) favorable and unfavorable variance items in both the Sales and Marketing and Operations departments. These variance items are important luxuriant to...If you want to get a full essay, order it on our website: Ordercustompaper.com
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