Joan Mason, the marketing manager for a large manufacturing company, believes her unfavorable sales volume variance is the responsibility of the production department. What production circumstances that she does not control could have been responsible for her poor performance?
Many circumstances at the production level could affect Joan's sales. Low quality control in the production process could lead to lower quality goods that are difficult to sell. Delays in the production process could affect the availability of products and inhibit sales volume. Failures in the production department to satisfy customer specifications could also limit sales. Careful investigation of significant sales volume variances can substantiate who is responsible for poor sales performance.
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