C1.10

Love All is a fairly large company manufacturing hockey equipment, located in Toronto. The company manufactures hockey sticks, pucks, clothing, and skates, all bearing the company's distinctive logo, a large green question mark on a white flocked hockey puck. The company's sales have been increasing over the past 10 years.

The hockey sticks division has recently implemented several advanced manufacturing techniques. Robot arms hold the hockey sticks in place while the glue dries, and machine vision systems check for defects. The engineering and design team uses computerized drafting and testing of new products. The following managers work in the hockey sticks division:

Hayley Geagea, sales manager (supervises all sales representatives)

Luc Lemieux, technical specialist (supervises computer programmers)

Gary Richardson, cost accounting manager (supervises cost accountants)

Manny Cordoza, production supervisor (supervises all manufacturing employees)

Patrick Dumoulin, engineer (supervises all new-product design teams)

Instructions

a.

What are the primary information needs of each manager?

b.

Which, if any, financial accounting report(s) is each likely to use?

c.

Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued.

C1.11

Million Dollar Mills is a manufacturing firm. The company carefully prepares all financial statements in accordance with Accounting Standards for Private Enterprises (ASPE) and gives a copy of all financial statements to each department. In addition, the company keeps records for quality control, safety, and its environmental pollution. It then prepares "scorecards" for each department indicating their performance. Recently, the financial impact of the second set of information was added, and the information has been used in the evaluation of employees for merit pay and promotions.

At the most recent employee meeting, Thanh Nguyen, marketing manager, expressed his discomfort with the system. He said there was no guarantee that the second set of information was fair since there were no generally accepted principles for this kind of information. He also said that it was kind of like keeping two sets of booksone following all legal requirements, and the other one actually used by the company.

Instructions

a.Is it ethical to evaluate managers in the way described? Explain briefly.

b.Name at least two safeguards the company could build into its system to ensure the ethical treatment of employees.