The department manager performance


The service unit or output for this department is the number of procedures performed. A static budget was prepared at the beginning of the year. You are now tasked with examining that budget in relation to actual experience.The department manager is pleased because they have a favorable $120,000 cost variance. Evaluate the effectiveness claims of the manager using the budgetary variance mode. What is your analysis of the department manager’s performance?  Explain your reasoning.

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Finance Basics: The department manager performance
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