Discuss some of the issues that you must recognize before evaluating your shift managers’ performance at the end of the month and comparing it against the flexible budget you have prepared.

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1. 1. As the manager of a Starbucks retail store, you are responsible for preparing a monthly flexible budget. You have developed standard costs for every item on the menu, including estimates of the labor required to prepare each coffee item. At the end of the month, you have a detailed report on all items sold by each shift during the month, as well as the coffee and all other ingredients and paper goods consumed during the month.
2. Discuss some of the issues that you must recognize before evaluating your shift managers’ performance at the end of the month and comparing it against the flexible budget you have prepared.