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(Solved) (Latest ver. Aug 2020) - Materials and Labour Budget Revisions: Give arguments

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Question:

Discuss each request below for a budget revision, putting what you see as both sides of the argument and reach a conclusion as to whether a budget revision should be allowed.

Materials:

A local material supplier was forced into liquidation. Criss-cross' buyer managed to find another supplier, 150 miles away at short notice. This second supplier charged more for the material and a supplementary delivery charge on top. The buyer agreed to both the price and the delivery charge without negotiation. 'I had no choice, the buyer said, the production manager was pushing me very hard to find any solution possible!' Two months later, another, more competitive local supplier was found.A budget revision was being sought for the two months where higher prices had to be paid.

Labour:

During the early part of the year, problems had been experienced with the quality of work being produced by the support staff in the labour force. The departmental manager had complained in his board report that his team were 'unreliable, inflexible and just not up to the job'.

It was therefore decided, after discussion of the board report, that something had to be done. The company changed its policy so as to recruit only top graduates from good quality universities. This has had the effect of pushing up the costs involved but increasing productivity in relation to that element of the labour force.

The support staff departmental manager has requested a budget revision to cover the extra costs involved following the change policy.

 







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