Surf Boards,Inc.had the following summarized results for the month ending July 30: As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

Question

Surf Boards,Inc.had the following summarized results for the month ending July 30:  As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

Quizplus · Accepted Answer

The most appropriate note to report to management would be that costs as a percentage of revenues are above budget and deserve further scrutiny. This is important information as it suggests that there may be inefficiencies or unexpected expenses that are driving up costs. By investigating these results further, management can identify areas for improvement and make necessary adjustments to reduce costs and increase profitability. Option A is not the most appropriate as it simply states that the department manager is performing to expectations, which does not provide any value-added insight. Option B is also not the best choice as it suggests that a bonus should be considered without any mention of why the revenues are above budget or whether this increase is sustainable. Option D is too extreme and suggests that the department manager's position should be critically evaluated based solely on the fact that costs are 17.5% above budget, without any consideration of the reasons behind this discrepancy.