Write a brief report addressing Rita's concerns, using some of the concepts covered in chapters (15, 16, 17, 20, 22, 23) in this unit, AND the information provided from the completion of Part A of this assignment, and any additional calculations using the existing data that you feel are relevant. Your report should also include a discussion of the impact of Paulo's intended investment in new manufacturing capacity. Support your report with relevant calculations.
Prepare a brief report to assist Paulo determine what might have caused the differences between the original budget and the final actual outcomes. Speculations of the causes are sufficient, provided they are supported by relevant calculations taken from the data provided, and the budget produced in Part A,. These calculations should be included in, and referred to, in your report. Restrict your discussion to the changes related to direct materials and direct labour. As Paulo is aware that budget estimates may be inaccurate at the time of budget preparation, do not include this particular cause of difference in your report.
Discuss the behavioural implications of planning and control when a company's management employs:
i. An imposed budgetary approach
ii. A participative budgetary approach
Illustrate your discussion with reference to your report to Paulo Farmer in Part C, discussing how Paulo might respond to the various outcomes of Part C if the budget had been imposed and contrast that with how he might respond (if differently) had the budget been prepared using a participative budgetary approach.
Assignment Preparation and Presentation (10% of the assignment assessment marks)