Internet Exercises

www: IE11-34 Talk with a Controller about Overhead Analysis Use an online yellow pages directory such as www.yell.com to find a business or nonprofit organization in your area with a web site. Find out as much as you can about the organization's operations from its web site.

Make an appointment with the controller chief financial officer of the organization you have identified. In the meeting, find out the answers to the following questions:

1.      Are actual overheard costs compared to a static budget, to a flexible budget, or to something else?

2.      Does the organization distinguish between variable and fixed overhead costs in its performance reports?

3.      What are the consequences of an unfavorable variance? Or a favorable variance?