The "no name" post

Its been a while since I actually enjoyed reading a textbook. What I mean by "enjoyment" is not my usual "trying-hard-to-be-productive-mood", but rather the "fun- upbeat-feeling". Ahh, yes, fun textbooks are rare.

I will get to the purpose of my post now...
So I was reading my advanced management textbook today about action controls (rules imposed by management on staff during day to day activities) and the author seemed to try very hard to prove to me, that these so called action controls have a minor disadvantage - "lack of creativity"

And so, he managed to convince me of this by just writing one sentence, which was "In some cases this discouragement is not a significant disadvantage, for example, creativity from pilots in the air is not normally desirable"

I conclude this post with a message to Robert Simons (the author).

Sir, could you please write more custom made textbooks for John Molson School of Business. I would greatly appreciate it. It seems the two of us have some kind of textbook-humor connection.

It doesn't happen very often.

Variances made easy!

These easy to remember formulas are an addition to the Variance Table which I have put up a couple of months ago.



Price Variance = [Actual Price- Budgeted Price] x Actual Volume

Mix and Volume Variance = [Actual Volume-Budgeted Volume] x CM/unit*


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Mix Variance = [(Total Actual Volume x Budgeted %)- Total Actual Volume] x CM/unit

Volume Variance = [(Total Actual Volume x Budgeted %) - Budget Sales] x CM/unit

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Variable Cost Variances

DM Variance = [Budgeted DM rate x Materials Produced]- Actual DM

DL Variance = [Budgeted DL rate x Materials Produced]- Actual DL

VOH Variance = [Budgeted VOH rate x Materials Produced]- Actual VOH


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Fixed Cost Variances

Selling Variances = Actual Selling Cost- Budgeted Selling Cost

Administrative Variances = Actual Admin. Cost- Budgeted Admin. Cost