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(Solved) Grieg Luxury Hotel has divided its downtown Atlanta hotel operations into several cost andrevenue centers. One of these cost centers is the...


accounting problem  comment on the format of the performance

Grieg Luxury Hotel has divided its downtown Atlanta hotel operations into several cost andrevenue
centers. One of these cost centers is the Housekeeping Department. Mr. Kleen, the head of the
department, is responsible for purchasing all cleaning materials, managing all employees, purchasing
cleaning equipment, and other items that are directly related to the department. Mr. Kleen is
evaluated on how well he keeps his costs in line with his budget. For the month of May of the
current year, he received the attached performance repoit from the accounting department of the
hotel. The general manager of the hotel wrote a brief memo to Mr. Kleen saying that "although you are not
too far over budget, I expect my department managers to meet the budget that I have given them or
stay under budget. You need to keep that in mind for future months." REQUIRED: (1) Comment on the format of the performance report prepared for the Housekeeping Department. (2) Redraft the performance report in a format that conforms to good principles
of responsibility reporting. (3) What other problems do you feel that the hotel may have in its performance
evaluation of its departments? Explain.

 


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