The comptroller wants to set the standards according to a study done by a consulting firm for a company. The consulting firm used the following assumptions: The machines never break down. Workers never take a break. The material used is perfect. The material arrives on time. No one takes a day off. Workers are well trained. Workers do not make defective units. What kinds of standards are these? Will the workers be motivated to achieve these standards?
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- Your HR Manager approaches you regarding a worker whose performance reports have been deteriorating lately and seeks your opinion on whether to keep or fire the worker. To balance things out, the manager says that the business has invested a lot of time and money in educating this employee on company-specific procedures, and that it would be a shame to let that money go to waste. What response would you have?arrow_forwardThe employees who work in the construction department of ABC builders LLC made a complaint against the Site Engineer that he was not providing good quality helmets. Few casualties happened recently due to the low-quality helmets. Which of the following issue describes the given scenario? O a. Conflict of interest O b. Employee safety c. Customer confidence d. Societal dilemmaarrow_forwardThe Carla Vista Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The actual operating results appeared as follows. Determine the missing amounts. (Round Return on Investment to 1 decimal place, e.g. 52.7%.) Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment $ Planes 5,018,000 1,518,000 25,018,000 12% Taxis $459,000 $ 189,000 79,000 10% Limos 329,000 389,000…arrow_forward
- The manager of a fabric store has noticed a considerable increase in the amount of defective fabric being scrapped by his store. Clerks notice the defects (such as irregularities in the weave or color of fabric) when they cut yardage from bolts of fabric. These defects usually affect only a small portion of the fabric on a bolt. Therefore, when a clerk discovers a defect, the “bad spot” is cut from the bolt. The clerk fills out a defect slip, which includes the amount of defective fabric (in yards), the retail price per yard, and the inventory control number. The defect slip is attached to the fabric and put in a “defects” bin in the storeroom. Once a month, the assistant manager sends the defect slips to the accounting department and packages the bad fabric for sale as scrap material. The accounting department uses the defect slips to write off the defective inventory in the accounting records. What information could the manager request from the management accounting department that…arrow_forwardWhich of the following would be best considered to be an agency conflict problem in the behavior of the following financial managers? pack to later. O A. Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds. O B. Sue instructs her staff to skip safety inspections in one of the company's factories, knowing that it will likely fail the inspection and incur significant costs to fix. OC. Michael chooses to enhance his firm's reputation at some cost to its shareholders by sponsoring a team of athletes for the Olympics. O D. James ignores an opportunity for his company to invest in a new drug to fight Alzheimer's disease, judging the drug's chances of succeeding as low. stv MacBook Air DII DD 888 F9 20 F7 F8 F6 F5 F4 esc F2 F3 F1 &arrow_forwardCenturion Homes of Calgary, Alberta, builds houses and has four construction crews. The supervisors hire and terminate workers and keep their hourly records. Each Friday morning, the supervisors telephone their workers’ hours to the home office, where accountants prepare the weekly pay cheques. Around noon, the supervisors pick up the pay cheques. They return to the construction site and pay the workers at day’s end. What is the internal control weakness in this situation? Propose a way to improve the internal controls.arrow_forward
- The Medford Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The printout of the actual operating results appeared as follows. 3 # E D Determine the missing pieces of information. Format all dollar amounts with $, commas, and zero decimal places. Format percentages with % and zero decimal places. F3 + C Service revenue Variable costs Contribution margin Controllable fixed costs. Controllable margin Average operating assets Return on Investment F4 4…arrow_forwardWolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor for this company is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete customer orders. From time order is placed to time order received by manufacturing 18.0 days From time order is received by manufacturing to time production begins 9.0 days Inspection time 3.5 days Process (manufacturing) time 7.0 days Move time 4.5 days What is the production (manufacturing) lead time for this order? Multiple Choice 34 days. 16…arrow_forwardThe operations vice president of Jessminder Hotels has been interested in investigating the efficiency of the hotel's operations. She has been particularly concerned about the costs of handling routine check ins and would like to compare these costs at the hotel's various locations. If the locations with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the hotel maintains good records of wages and othe costs, there has been no attempt to show how those costs are related to the various services. The operations VP has asked for an activity-based costing study of hotel operations. In particular, she would like to know the cost of check in, check out, and the cost of other customer interactions. The San Francisco Hotel has submitted the following cost data for last year: Totals Front desk wages 200000 Assistant manager salary 105000 General manager salary 150000 Total cost 445000 In addition to the cost…arrow_forward
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