Organization and
Management
Quarter 2 – Module 5
Different Controlling
Methods and Techniques
SENIOR HIGH SCHOOL
SENIOR HS MODULE DEVELOPMENT TEAM
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12
Organization and
Management
Quarter 2 – Module 5:
Different Controlling
Methods and Techniques
Introductory Message
For the facilitator:
Welcome to the Organization and Management 11 Alternative Delivery Mode (ADM) Module on Different Controlling Methods and Techniques!
This module was collaboratively designed, developed and reviewed by educators both from public and private institutions to assist you, the teacher or facilitator in helping the learners meet the standards set by the K to 12 Curriculum while overcoming their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent learning activities at their own pace and time. Furthermore, this also aims to help learners acquire the needed 21st century skills while taking into consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of the module:
As a facilitator you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Furthermore, you are expected to encourage and assist the learners as they do the tasks included in the module.
Notes to the Teacher
This contains helpful tips or strategies that will help you in guiding the learners.
For the learner:
Welcome to the Organization and Management 11 Alternative Delivery Mode (ADM) Module on Different Controlling Methods and Techniques!
The hand is one of the most symbolized part of the human body. It is often used to depict skill, action and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning resource signifies that you as a learner is capable and empowered to successfully achieve the relevant competencies and skills at your own pace and time. Your academic success lies in your own hands! This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning resource while being an active learner.
This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the module.
What I Know This part includes an activity that aims to
check what you already know about the lesson to take. If you get all the answers correct (100%), you may decide to skip this module.
What’s In This is a brief drill or review to help you link
the current lesson with the previous one.
What’s New In this portion, the new lesson will be
introduced to you in various ways such as a story, a song, a poem, a problem opener, an activity or a situation.
What is It This section provides a brief discussion of the
lesson. This aims to help you discover and understand new concepts and skills.
What’s More This comprises activities for independent
practice to solidify your understanding and skills of the topic. You may check the answers to the exercises using the Answer Key at the end of the module.
What I Have Learned This includes questions or blank
sentence/paragraph to be filled in to process what you learned from the lesson.
What I Can Do This section provides an activity which will
help you transfer your new knowledge or skill into real life situations or concerns.
Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning competency.
Additional Activities In this portion, another activity will be given
to you to enrich your knowledge or skill of the lesson learned. This also tends retention of learned concepts.
Answer Key This contains answers to all activities in the
module.
At the end of this module you will also find:
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a separate sheet of paper in answering the exercises.
2. Do not forget to answer What I Know before moving on to the other activities included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers. 5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your teacher or facilitator. Always bear in mind that you are not alone. We hope that through this material, you will experience meaningful learning and gain deep understanding of the relevant competencies. You can do it!
References This is a list of all sources used in developing this module.
What I Need to Know
This module was designed and created to help you understand the different controlling methods and techniques applied in the business world.
At the end of this module, you will be able to:
1. Define and discuss the nature of controlling; (ABM_AOM11-IIf-h-34)
2. Distinguish the control method system; and (ABM_AOM11-IIf-h -36)
3. Apply the concept and nature of different control methods and techniques in accounting and marketing. (ABM_AOM11-IIf-h -37)
What I Know
Word Hunt
Find the words written below and encircle your answer.
C Z N C P X Y F T E C H N I Q U E S M O A B X O T E H Q U B R N W F X J U M A F S U S N E R O T E H L Y A M Z O G D N N L D P T D G O Y P Z A L V O R O E H A X N G R R T Q K U E I K C J D U E D M G D M E V O P V R E R O T H E E L Z A Y E F X T S L G D O T F E H Q U R I C U K M E Y T H T B A C C O U N T I N G R D O E U P R P H W N O F R X E D J U M P I T N M S A A E Q K U I M B O R W N X O T F T P R D D K J M P D A E V R E O T E L H L Z T I X C A Y D G N O H T E U I Q K B W R O T Y F S F U N C T I O N W T H I H Q P K I R X S W F O E L R D A E Y J P M W R O O A O E R M Y Q P F S Q R G K O D E O V N B J L B R E A K E V E N P O I N T F Y A V D A Z P Q P L U O C J L Q H G Y I R L S F S G R S P M W P Q K R W R L R T A C L D A R S N S N V N R L W S C Q E J T C K S M S N T R S P B H M E A V W W H I B U U G Q A Y Y T S C I N Q H M A Q L O R O R G A N I Z A T I O N A L Z S S D
Control Organizational Techniques Accounting Ratio Traditional
Performance Sales Profit Function Modern Budget
Lesson
1
Controlling Method System
What is Controlling?
Control is a management task that helps identify errors and find solutions to improve, if not totally eradicate the situation.
Modern management concepts described control a foreseeing action. Old concept of control were only applied upon the discovery of errors.
Harold Koontz defines Controlling as the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them is accomplished.
Characteristics
Control is a process done by management continuosly. This is connected to planning, and sees to it that the standard outputs are met. The difference between the standard and actual performance is being measured. The corresponding corrective action to rectify the deviation follows. This way, management will be able to minimize errrors and achieve higher rating of
performance.
Elements of a good Control System
An effective control system must have the necessary elements to work at its best. The absence of any one of them will make the whole system less effective. Therefore, managers should see to it that their control system should contain the following elements and considerations:
1. Feed back – The foundation of all control system. There are two kinds of feed back, the formal and informal feed back. Financial statements, statistics and reports fall under the formal category. Whereas, the informal feed back includes personal opinions, informal discussions and an individual observation. Responsible managers use the information they receive from feed back to implement corrective action. This is to fill the gap created by the actual performance of the organization and its goals.
2. Control must be objective – a control system must not be subjective at any point in time. For example, managers should make their
employee’s evaluation based on standards like working hours, productivity, efficiency, etc. It must not be based on personal biases. 3. Prompt Reporting of Deviations – A fast and quick reporting of any
deviation and discrepancy should be reported immediately to facilitate serving of the corrective action immediately.
4. Control should be forward-looking – The managers should be able to predict or foresee any arising possible deviation to enable to take course of action to avoid totally the occurrence of such discrepancy and if possible prepare to respond in case it would come their way.
5. Flexible Controls – A stiff and strict control system may not be as effective in every situation possible. There are unpredictable situation that may arise. Managers should be able to adjust their control system depending on the need of the situation.
For example: your production deadline is coming very soon. You know you can not produce the required output needed on time. This can cause shiftment delay and would entail additional cost in your part. Your only solution is to hire additional sewers to accommodate unexpected orders. This action may caused increased in your labor cost but you have to do it to avoid possible losing of customer and bigger air shiftment cost.
6. Hierarchial Suitability – Every manager should have the necessary power to exercise their authority and to decide on their own respective departments regarding any variance that may arise in their respective post.
7. Economical Control – The benefits that can be derived from doing the corrective action should be greater than its cost.
Example: Firing high salaried and skilled employee and hiring semi- skilled employees
In this situation, a skilled employee is asking you again for a salary raise, you know that you can not afford to do it at this present pandemic time, he eventually resigned from his post, you know that you will be needing him in the future when business normalizes but at this point in time you have to let him go and train a semi-skilled worker. Training him will cause you money but in the long run, you will have a highly skilled employee with reasonable salary.
8. Strategic Control Points – This means that the organization should not put an equal priority to every deviation. Any discrepancy that could cause serious effect in the organization should be given the priority as compared to the less serious ones. For example, if you lose
9. Control must be simple to understand – Every employee should be able to comprehend and understand the control system easily. This can be done through meetings, announcements and memoranda
10. Control Should Focus on Workers – The main focus of every
control system should be the workers themselves. Workers are the implementers, so therefore, they should be able to work with the system effectively.
Importance of Control
There are many benefits of an effective controlled system in both employees and Management in a manufacturing settings. Some of these are
1. Quality assurance: Quality is assured across all fields of production, Product quality is very important especially if you have new customers. Existing customers also expect that we will keep our quality. This is also important in attracting prospective customers.
2. Less wastage: Established production control system will help reduce scrap and wastage materials. This will help the company save more money.
3. Lower operating costs: Efficient operation process will help save more cost in direct and Indirect labor and also with the materials.
4. Assists decision-making: An established control system will help management make business decision with regards to production quality and capacity and hence helping the company to attract more customers and get more production orders.
5. Production planning: Since production is already established, It is easier for the management to decide how much to produce and when to produce certain products. In this way the management can make an efficient decision to control orders.
6. Production control: Since control system is already set, the usage of resources can be optimized. Desired performance is also achievable.
What’s In
Apply the correct letter to form the right word or words that fits to its meaning.
1. _O N_T R _ _ – Is a management task that helps identify errors and find solutions to improve, if not totally eradicate the situation.
2. H _ R _ L D K _ _N T _ - Defines controlling as the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them is accomplished
3. D _ V I _ T _ O N - The difference between the actual performance of the organization and its goals.
4. F _ R M A _ F _ E _ D B _ C _ - Are based on Financial statement, statistics and reports.
5. I _ F _ R M _ L F _ _ D B _ C K - Are feedbacks based on personal opinions, informal discussion and individual observation.
6. W _ S T _ G E - The amount of materials put to scrap because of poor control. 7. F L _ X _ _ L _ C _ N T _ O _ Managers should be able to adjust the control system depending on the need of the situation.
8. E _ O N _ M I _ A L C _ _ T R O _ - The benefits that can be derived from doing the corrective action should be greater than its cost.
9. S _ R A _ E G _ C C _ N T _ L - The organization should not put an equal priority to every deviation.
10. S _ A N D _ _ _ The actual output of the control system is compared to this to arrive at the deviation.
Notes to the Teacher
This module will help the learner understand the different management control system.
What’s New
Choose the term that best describes each given statement. Write ONLY the letter of your choice on the blank provided before the number.
_________1. Is a Management Control Techniques which already have been used by the company for a long time.
_________2. Are techniques which are of recent origin & are comparatively new in management record.
_________3. Are the expected incoming and outgoing of funds within the budgeted period.
_________4. What the company is plan to produce within the budgeted period. _________5.A statement on which the company is expected to sell within the budgeted period.
_________6. A system of accounting in which overall involvement of different sections of an organization are set up as ‘Responsibility center’.
_________7. An appraisal of the overall performance of the management of an organization.
_________8. Are important network techniques useful in planning and controlling. This includes scheduling & implementing time-bound projects.
_________9. Refers to the techniques that enables the manager to collect the information as first-hand information.
________10. - Is defined as quantitative statement prepared for a definite future period of time for the purpose of obtaining a given objective.
1. Budget 6. Modern
2. Personal Observation 7. Production Budget
3. Management Audit 8. PERT & CPM 4. Sales Budget 9. Cash Budget
What is It
There are many different techniques of managerial control. These can be classified into two broad categories:
1. Traditional Techniques 2. Modern Techniques
Traditional Techniques – are those which are already been doing by the
company for a long time now. These includes:
a. Personal Observation – This is the most traditional method of control.
The Manager gathers information by way of observing the employee’s performance. This creates psychological pressure on the part of the employees because they know that they are being observed and they need to performed well. This is a very time consuming method and cannot effectively use for all kinds of job.
b. Statistical Data – Analysis of reports and data in the form of ratios,
averages, percentage and etc. This can be used to measure performance of the organization in various areas. And through the use of chart or graph enables the manager to measure performance as a whole by way of comparing the present data with that of the previous one.
c. Break-even analysis – is a technique where managers study the
relationship of cost, volume and profit. In this state, the company does not incur loss or profit at a given sales volume. The formula for computing break even analysis is:
Breakeven point = Fixed Costs/Selling price per unit – variable costs per unit
Break-even point - The amount of sales at which there is no profit, nor loss is
known as the breakeven point.
Fixed Costs –are expenses that have to be paid by the company independent of
any specific business activities. This cost will not change even if you
produce/sold more goods in a specific accounting period. Example of this is
Office or factory rent. You will pay the same amount of rent every month even
if you hire or fire more employees. Other example of this cost includes: Property
taxes, interest expenses, depreciation etc.
Variable Cost –
are expenses that changes when production output increasesor decreases. When the company produces more goods then variable cost will also increase. On the other hand, if production output is low and so is variable cost. Example of variable cost is the cost of Raw materials and packaging. Fixed Cost vs Variable Cost
Raw Materials Quantity Fixed Variable Total in pcs Cost (Php) Cost (Php) Cost (Php)
Fabrics, Accessories and Labor 1 back pack Php100 Php150 Php250 2 back packs 100 300 400 3 back packs 100 450 550
Total 6 back packs Php300 Php900 Php1,200
In the table above please note that as raw materials, accessories and labor increase, variable cost also increases. Fixed cost remain steady regardless of the increase in the production factors.
Variable cost per Unit
How are we going to compute for variable cost per unit? Get the total variable cost then divide it with the total yielded output. In the above case, the total variable cost is Php900. Hence, 900/6 is equals to 150.
Selling Price
How much the customer is willing to pay for a certain product or service. We will use the example above and this is calculated as:
Selling Price = Cost + Profit Margin
Cost per pc of bag = 200 + 40% profit margin Therefore: SP = Php280/bag
Computation of Break Even points in units
Using the formula above: Fixed cost = P300 Selling Price = 280 Variable Cost = 150
Break-even point = 300/(280-150)
Break-even point in units = 2 units
This means that you have to produce at least two back packs to meet the break- even point.
d. Budgetary Control – is defined as a technique of Managerial control
that requires every department to prepare and plan in advance by way of making a budget.
Foreseeing expenses and other events that may have a big impact in the operation of the business is of utmost importance. Department Managers are responsible to prepare an annual budget with the cooperation of their heads and or supervisors down to the rank and file.
Actual results are compared with the set budget standards. The usual type of budgets used by an organization are as follows:
1. Sales Budget – is a plan made by the organization how many units
of product they have to sell within the budget period and how much are they going to sell.
The sales and or the marketing department is responsible in doing this budget. As such, they see to it that they find more customers/buyers whether locally or in abroad. But export products are better dollar earner as compared to products being sold locally.
Aside from looking for prospective buyers, existing customers should be keep to ensure continuous production orders. Marketing should also see to it that it will issue the necessary information in the soonest possible time to the production department. Information like total quantity of orders, materials needed and lead time are all important to enable the production department better prepare.
2. Production Budget – This pertains how many products should the
organization plan to produce in a given period of time to meet the requirements of the sales department. How much the production is capable of producing has a direct effect on the sales budget. Therefore, marketing department has to discuss production plan with them to put things in order. Purchasing department has to receive in a timely manner, the purchase requisitions from the different production department duly approved by their respective superiors. This way the Purchase order can be place on time. Enough lead time is important for the suppliers to enable them to produce the needed materials for production. Accounting department has to be informed also because petty cash purchases is needed for supplies that are needed as well. On time payments of account is an important job of the accounting department.
3. Material Budget – is the total of raw materials plan to purchase in
order to meet the production requirements. This is totally dependent on the order being placed by the production to the purchasing department. Inventories should be checked properly to come up with the correct quantity of raw materials to be procured.
This is very important, we can not keep a big amount of inventory sitting at the warehouse for a long time. There should be sufficient supplies of the materials needed to serve our current production order especially the urgent ones. We can also produce in advance to save cost and expenses.
4. Cash Budget – This is the expected inflow and outflow of cash within
the budgeted period. The usual cash inflow in the budget depends on how many cash sales are made and collection of receivables. The outflows on the other hand are the expected expenses to be incurred within the accounting period like salaries, utilities and payment of other payables. The finance and accounting department should come up with a cash budget that would serve and cater the needs of the production.
5. Capital Budget – The amount of money to spend on major
long-term assets like a new factory or major equipment
6. Research & development budget – The amount of money to spend
for the development or refinement of products & processes
Modern Techniques of Managerial Control
Modern techniques of managerial control are those techniques which are just recently used and this provide a new way of dealing with the control system on the various aspect of the organization.
a. Return on Investment – This (ROI) shows whether the invested capital
has been used effectively by the company to generate reasonable amount of return. It measures the overall performance of the organization or its departments or divisions.
b. Ratio Analysis – is use by the organization to analyze the financial
statement of the company. This process shows the performance, financial health and risks that the business have. This can be used by the organization and other stakeholders to make economic decisions.
The following are the ratios most commonly used by the organization:
Liquidity ratio – This shows how much current assets is
available to pay current liabilities.
Solvency ratio – This will measure the ability of the
company to pay its obligations (google dictionary)
Profitability ratio – Is being done to find out the ability of
the company to generate income from the use of its assets and capital.
Turn Over ratio – It measures the peso value of sales
produced for every peso of assets.
c. Responsibility Accounting – This system give every department heads
the opportunity control and allocate expenses and cost based on what they need at a particular time
Cost center - is a department that incurs costs but
doesn’t have any revenues. This is one of the department that uses company resources but doesn’t contribute to the production, sales, or profitability of the
business. Examples are the Accounting and Legal departments.
Revenue center – Incurs cost and expenses and
produces revenue.
Profit center – is a department that generates revenue
and uses the resources of the company. Example is the Sales department.
Investment center – Their job is to analyze the
department’s performance by way of looking at the assets and resources and how they used these assets and resources to produce revenues
d. Management Audit – a systematic evaluation of management
performance, to find out how well they are doing in managing the business. The purpose of the audit is to review the efficiency and effectiveness of management and to look for possible improvements of the system in the future.
e. PERT & CPM - These will help perform the different functions of management in planning, scheduling & implementing time-bound activities involving the performance of a variety of complex, diverse and interrelated activities.
PERT - Programmed Evaluation & Review Technique CPM – Critical Path Method
What’s More
I. Read each statement carefully and determine if the statement is True
or False. Write your answer in the space provided.
_________1. When production increases, fixed cost also will increase.
_________2. Selling price is the amount that the buyer wants to pay for a certain product.
_________3. The formula in computing variable cost per unit is : Total variable cost/Total quantity produced.
__________4. The amount of sales at which there is no profit, nor loss is known as the breakeven point.
__________5. The cost per unit plus profit margin is equals to selling price per unit.
II. Classify the following expenses from column A. Identify them if they
belong to Fixed cost or Variable cost. Write your answer in column B
Column A Column B 1. Rental 2. Insurance 3. Fabric 4. Slider 5. Thread
What I Have Learned
FILL IN the WORDS that will complete on the statement below.
Control is a fundamental managerial ______________. This regulates the activities of the business. It compares the ___________performance against the ____________set by the organization. For the deviation from the actual and standard performance, it sees to it that a _________________is taken.
The various managerial techniques are aimed to improve ___________. These are broadly categorized as____________and___________ techniques. Both served the organization needs at a given point in time. There are advantages and disadvantages in both techniques. They however complement each other in serving the organization needs.
The four departments in an organization that plays a major role in planning and budgeting are the Accounting, Purchasing, Marketing and Production departments.
The accounting department is responsible to prepare
the____________budget.
The sales budget is the responsibility of ______________department. While the availability of raw materials needed by the production is needed to secure by the______________department to enable the production to prepare their_____________.
What I Can Do
I. As a student during this pandemic time, what do you think are the
list of priority of the following pictures in your family budget? In your answer sheet, list down your priority list based on your personal judgment.
1. Travel 2. Food 3. Gadgets 4. School supplies 5. Church donations 6. Savings 7. Business 8. Clothing 9. Shelter 10. Medical
Assessment
IDENTIFICATION: Write the correct answer on the space provided before the number. ___________1. Analysis of the financial statement that shows the performance, financial health and risks that the business have
___________2. A technique that measures if the invested capital has been used effectively to generate reasonable amount of returns.
___________3. This measures the ability of the company to pay its obligations. ___________4. This shows how much current assets is available to pay current liabilities.
___________5. A department that incurs cost but no revenues. ___________6. Incurs cost and expenses and has revenues
___________7. Analyzes how assets and resources are used by the company.
___________8. An evaluation that shows the management’s efficiency and effectiveness in managing the organization.
___________9. Help the management in planning, scheduling and implementing time-bound activities.
___________10. The amount of money set aside for the development and refinement of product and processes.
___________11. Expected in flow and out flow of cash within the budget period. ___________12. The total raw materials to be purchased for production used.
___________13. This refers to quantity of products needed to be sold to meet sales requirements.
___________14. A plan made how many units of products needed to be sold within the budget period.
___________15. Expenses that increases as the quantity produced increases.
Additional Activities
A. JUMBLED LETTER
Rearrange the jumbled letter to identify the word/s described in the statement. In a separate sheet of paper write your answer in Capital letter.
1. G T R I A I N N - Enhancing employee’s skills by attending seminars and other activities.
2. YLQUIALT ESSAURACE – A thorough inspection of product is needed to maintain quality.
3. TSOC GSAIVN – Turning off machines when not in used.
4. BARKE VENE TOINP - The sales volume at which there is no profit, or loss.
5. VRAIAELB TSCO – a cost that changes as the output produced increases or decreases.
B. Listed below are the various techniques of Managerial control, classify them by writing it under the right column they belong.
Personal observation Break-even analysis
Return on investment Budgetary control
Statistical reports Responsibility accounting
Ratio analysis Management audit
PERT & CPM
Traditional Techniques Modern Techniques
1. 1.
2. 2.
3. 3.
4. 4.
Additional Activities
C. Assuming you are already working and earning money for yourself.
How would you spend your hard-earned money? In your answer sheet, indicate how many percent of your income would you allocate for each of the following needs:
Needs Percent allocated (Budget)
1. Food and water
2. Clothing
3. Savings
4. Emergency Fund
5. Food Storage
6. Utilities (Electricity & water)
7. Internet (wifi, load)
8. Transportation (Fare)
9. Medical Needs
10. Food storage
Answer Key
Wh at I K no w: Do wn : 1. Rati o 2. Bu dge t 3. Trad iti on al 4. Con tro l 5. Sal es 6. Per fo rma nce 7. Mo der n 8. Aud it 999. Wh at I K no w: 9. Man age men t 10. P ro fit Acro ss 11 . Te chn iq ue 12 . Acco un tin g 13 . F un ctio n 14 . B rea k-e ve n p oin t 15 .O rga niz ati on al Wh at In: 1. Con tro l 2. Ha ro ld K oo ntz 3. Dev iati on 4. Fo rma l f eed b ack 5. In fo rma l f eed b ack 6. Wasta ge 7. Fle xib le con tro l 8. Econ omi cal co ntr ol 9. Str ate gic con tro l 10 .Sta nd ard Wh at’ s New : 1. Tr ad iti on al 2. M od ern 3. Ca sh b ud get 4. P ro du ctio n b ud get 5. S ale s b ud get 6. R esp on sib ility acco un tin g 7. M an age men t au dit 8. P ERT & CP M 9. P ers on al o bse rva tio n 10 . B ud get Wh at’ s More : I. T ru e or False 1. False 2. Tru e 3. Tru e 4. Tru e 5. Tru e II. C lassif icatio n o f exp en se 1. Fix ed 2. Fix ed 3. Var iab le 4. Var iab le 5. Var iab le Wh at I H ave Le arn ed : 1. Task /jo b 2. Actu al 3. S tan dar d 4. Corr ecti ve acti on 5. Per fo rma nce 6. Trad iti on al 7. Mo der n 8. Ca sh b ud get 9. M ark eti ng dep artme nt 10 . P urch asi ng dep artme nt 11 . B ud get Wh at I C an D o: Dep en ds on th e le arn er’ s an sw erAsse ssme nt: 1. R ati o a nal ysi s 2. R etu rn o n in ves tmen t (R OI) 3. S olv en cy r ati o 4. Li qu id ity ra tio 5. Co st cen ter 6. R eve nu e ce nte r 7. I nve stme nt cen ter 8. M an age men t au dit 9. P ERT & CP M 10 .R ese arch an d d eve lo pme nt bu dge t 11 . Ca sh b ud get 12 . M ate ria ls bu dge t 13 . P ro du ctio n b ud get 14 . S ale s b ud get 15 . V ari ab le cost Ad dit ion al A ctiv ity: A. 1.Tr ain in g 2. Q ual ity As su ran ce 3. Co st sav in g 4. B rea k-e ve n p oin t 5. V ari ab le cost B. Tra dit ion al. 1. P ers on al O bse rva tio n 2. S tati sti cal R ep orts 3. B rea k-e ve n a nal ysi s 4. B ud geta ry con tro l Ad dit ion al A ctiv ity: . B. 1. R etu rn o n In ves tmen t (R OI) 2. Rati o a nal ysi s 3. Res po nsi bili ty a ccou nti ng 4. M an age men t au dit 5. PER T & CP M C. D ep en ds on st ud en t’s an sw er
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