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Marks & Spencer, a huge retailer in the United Kingdom with sales of more than 9 billion, was troubled by its paper bureaucracy. Looked at
Marks & Spencer, a huge retailer in the United Kingdom with sales of more than 9 billion, was troubled by its paper bureaucracy. Looked at in isolation, each document seemed reasonable, but overall a researcher reported that there was substantial effort in each department to verify the information. Basically, the effort seemed out of proportion to any value received, and, eventually, the company simplified or eliminated many of the documents. Requirement 1. Describe the rationale that should govern systems design. How should a company such as Marks & Spencer decide what documents it needs and which can be eliminated? The rationale that should underlie systems design is the cost-benefit balance The aim is for the improvement in revenue and reduction in costs due to better decisions to outweigh the costs of the accounting system. Marks & Spencer should look at provide needed scorekeeping? D decisions? These types of questi it produces with an eye toward how it helps managers make better decisions. Does it need altering? Does it provide information for specific management each of the management accounting reports each of the production reports the balance sheet and income statement the employee survey summary Marks & Spencer, a huge retailer in the United Kingdom with sales of more than 9 billion, was troubled by its paper bureaucracy. Looked at in isolation, each document seemed reasonable, but overall a researcher reported that there was substantial effort in each department to verify the information. Basically, the effort seemed out of proportion to any value received, and, eventually, the company simplified or eliminated many of the documents. Requirement 1. Describe the rationale that should govern systems design. How should a company such as Marks & Spencer decide what documents it needs and which can be eliminated? The rationale that should underlie systems design is the cost-benefit balance Marks & Spencer should look at . The aim is for the improvement in revenue and reduction in costs due to better decisions to outweigh the costs of the accounting system. it produces with an eye toward how it helps managers make better decisions. Does it provide needed scorekeeping? Does it direct attention to aspects of operations that might need altering? Does it provide information for specific management decisions? These types of questions will help identify the benefit of the information in the report. the internal controls of the company. the product life cycle. the value chain. what management needs to exclude
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