In fact based on the variance analysis, Peyton Approved should make a few changes. Even though Peyton Approved may have a few favorable variances that “does not always mean that a manager did a good job, nor does it an unfavorable variance mean that a manager did a bad job” (Nobles et al., 2014). All substantial variances should be looked at. Peyton approved should be specifically looking at what is causing their efficiency variance. This variance may have many reasons why, but ultimately it could be due to not having the correct training for employees, having unskilled employees, or even bad equipment. With these problems, it can cause the production of products to slow down and the quality of the products to decline as well. Another reason …show more content…
Based on the variance analysis there are a few ethical considerations of the changes selected for Peyton Approved. When it comes to picking the right employees to work, Peyton Approved needs to make sure that they have proper training and are paying them well too. With hard working employees they deserve a good pay to stay motivated and continue to push harder. Without good employees the company cannot run as smoothly, so giving them a good pay is worth it, if the work completed is up to Peyton Approved’s set standards. Without good treatment to employees, they will start to leave, and that can give the company a bad name and cause their customers and their business district to lose trust and not make any sales for the company. Treating employees with care and making sure everyone is treated fairly is important to the success of Peyton Approved and what they want to show to the world. Although, Peyton approved will have to make sure that employees are not cheating the system and are doing what is expected, so that when they receive the information from the budgets they can make effective decisions and develop strategies to improve the company. The company can specifically watch out for inflation as well as production starts rising due to employees not following the process. This leads to having a clear set of expectations and goals for employees and everyone in the company, so that everyone is on the same page and knows what they have to do. Without expectations and goals set there is no communication, which is key to Peyton Approved. Also, when deciding to buy raw materials, Peyton Approved needs to think about whether it is right to try to save money and provide cheaper products or spend a little more on quality material to give their customers what they want