Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi there. I would like the following questions to be answered. It's under managerial accounting ( Management Control Systems). Kindly let me know if you

Hi there. I would like the following questions to be answered. It's under managerial accounting ( Management Control Systems). Kindly let me know if you would be able to do it.

image text in transcribedimage text in transcribed
Question One (word limit: 800 words) Willy Auto Part (WAP) manufactures replacement parts for car repairs. The following situation concerns two WAP employees: Sandra Smith, head of the company's Billing and Invoicing (38d) Department, and Jack Davis, the firm's general manager. Smith's Billing Department makes heavy use of hourly employees and is evaluated as a cost center. Understanding the need for prompt collection of receivables, Smith strives to run a rst-class operation. Smith also understands the need to contribute in a big way to WAP's nancial performance so she continually strives to minimize 38d expenses. Unfortunately, Smith experienced a heated discussion with Davis several weeks ago, the subject being the shoddy operation that she is running. Davis complained loudly about the lack of timely billings to customers and the general lack of attention to detail, as many complaints have surfaced about erroneous invoices and customer statements. REQUIRED: A. What measure(s) of performance should the company use to evaluate 38d manager? Should the company consider controllability when measuring the performance of the manager? Why? (2 marks) 3. Does Davis have a valid reason to be upset with Smith? Given the nature of the 38d Department, did Smith make a mistake in her quest to minimize expenses? Explain. (5 marks) C. Is it likely that the 38d Department could be evaluated as a profit center? Why? (3 marks) Question Two (word limit: 250 words) For each of the following independent situations, state whether the company is following a low cost or a differentiated product strategy and explain your answer. a) Bellisario company has been asked to provide store-brand cereals that will be sold at discount retail stores. b) Cameron manufacturing is entertaining the idea of developing technologically advanced tires. The tires will be especially designed to provide optimum level of safety, performance, and efficiency. c) Gama tech is about to decide whether to launch production and sale of a tablet computer with standard features. d) Cam Corp. is trying to decide whether to produce and sell water- proof memory cards. The cards have exceptionally fast write and read speeds. (4 marks) Question Three (word limit: 550 words) Identify three of the most successful companies or organizations today, in your opinion. Explain why they are so successful (your answer should consider business strategy and core competencies). (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

16th Edition

0357714040, 9780357714041

More Books

Students also viewed these Accounting questions

Question

Subjective norms, i.e. the norms of the target group

Answered: 1 week ago

Question

The relevance of the information to the interpreter

Answered: 1 week ago