Scenario
You are an operational accountant for Put It Together, an organization that manufactures arts and crafts supplies. You are responsible for distributing the monthly budgeting reports, which show the actual results versus the budgeted projections. The vice president (VP) of the western division of Put It Together, one of the stakeholders who relies on the accuracy of the master budget, has requested information about favorable direct material and unfavorable direct labor variances. The VP has asked you to write a memo that describes cost structures and types of costs. The skills practiced in this activity will help to support you in your project.
Directions
Write a memo that describes cost structures the organization can use and the types of costs within the organization. Specifically, you must address the following rubric criteria:
- Describe the stakeholders who might interact with and rely on the master budget to make decisions.
- Explain how stakeholders use the information in the master budget to make decisions.
- Explain why the accuracy of the master budget is critical to the organization.
- Explain the ethical implications of the budgeting process in the organization.
- Evaluate the function of cost data in variance analysis in operational performance measurement.
- Determine the variance analyses associated with direct materials, direct labor, and manufacturing overhead.
- Determine factors that impact the accuracy of the master budget. Consider the following:
- Causes for a favorable direct material variance
- Causes for an unfavorable direct labor variance
- Assess how the variance analysis results can help improve strategic decisions and the accuracy of results in subsequent years.
What to Submit
Submit your activity as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.
AI Usage
If you use gen AI tools to support your work on this assignment, be sure to follow . You must acknowledge your use of these tools in your work. Guidelines on how to cite AI tools can be found in .
Module Five Activity Rubric
| Criteria | Exceeds Expectations (100%) | Meets Expectations (90%) | Partially Meets Expectations (70%) | Does Not Meet Expectations (0%) | Value |
|---|---|---|---|---|---|
| Stakeholders | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Describes the stakeholders who might interact with and rely on the master budget to make decisions | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to describing the stakeholders who might interact with and rely on the master budget to make decisions | Does not attempt criterion | 11.25 |
| Information | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Explains how stakeholders use the information in the master budget to make decisions | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to explaining how stakeholders use the information in the master budget to make decisions | Does not attempt criterion | 11.25 |
| Accuracy | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Explains why the accuracy of the master budget is critical to the organization | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to explaining why the accuracy of the master budget is critical to the organization | Does not attempt criterion | 11.25 |
| Ethical Implications | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Explains the ethical implications of the budgeting process in the organization | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to explaining the ethical implications of the budgeting process in the organization | Does not attempt criterion | 11.25 |
| Function | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Evaluates the function of cost data in variance analysis in operational performance measurement | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to evaluating the function of cost data in variance analysis in operational performance measurement | Does not attempt criterion | 11.25 |
| Variance Analyses | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Determines the variance analyses associated with direct materials, direct labor, and manufacturing overhead | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to determining the variance analyses associated with direct materials, direct labor, and manufacturing overhead | Does not attempt criterion | 11.25 |
| Factors | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Determines factors that impact the accuracy of the master budget | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to determining factors that impact the accuracy of the master budget | Does not attempt criterion | 11.25 |
| Results | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Assesses how the variance analysis results can help improve strategic decisions and the accuracy of results in subsequent years | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to assessing how the variance analysis results can help improve strategic decisions and the accuracy of results in subsequent years | Does not attempt criterion | 11.25 |
| Clear Communication | Exceeds expectations with an intentional use of language that promotes a thorough understanding | Consistently and effectively communicates in an organized way to a specific audience | Shows progress toward meeting expectations, but communication is inconsistent or ineffective in a way that negatively impacts understanding | Shows no evidence of consistent, effective, or organized communication | 5 |
| Citations and Attributions | Uses citations for ideas requiring attribution, with few or no minor errors | Uses citations for ideas requiring attribution, with consistent minor errors | Uses citations for ideas requiring attribution, with major errors | Does not use citations for ideas requiring attribution | 5 |
| Total: | 100% | ||||
