Revor Mowers Ltd manufactures lawnmowers and grass-slashers. The manufacturing plant has three production departments: Metalwork, Mechanical Work and Assembly. The company uses monthly standard costing reports to evaluate performance and control costs in the manufacturing areas. Typically, these reports are distributed to managers within two weeks of the end of the month.

Required:

1. Identify the performance measures that are likely to be included in the monthly standard costing reports. (You may need to revisit Chapters 10 and 11.)

2. How useful do think this information will be for the:

(a) Managing director

(b) Manufacturing plant manager

(c) Production department managers

(d) Production line foremen and supervisors? Explain your answer in each case.

3. Suggest two areas, apart from cost, where the company is likely to want to improve its performance.

4. Dick one area that you have identified in requirement 3, and suggest two performance measures for each of the four nageme1t levels listed in (a) to (d) of requirement 2?



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