ACCT I S 211 Study Guide - Midterm Guide: Employee Stock Ownership Plan, Profit Sharing, Human Relations Movement

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tanfly138

13 Oct 2016

School

UW-Madison

Department

Accounting And Info Systems

Course

ACCT I S 211

Professor

Matsumura Ella

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Document Summary

Management accounting and control system (macs) generates and uses information that helps decision makers assess whether an organization is achieving its objectives. A cost management system is the central performance measurement system at the core of this: helps decision makers determine whether organization-, business-, and operational- level strategies and objectives are being met. The meaning of (cid:498)control(cid:499: control refers to the set of procedures, tools, performance measures, systems, and incentives organizations use to guide and motivate all employees to achieve organizational objectives. In control if on the path to achieving its strategic objectives. Technical considerations: the relevance of the information generated. Accurate- designers have to develop a system that leads to the most accurate information possible, subject to a cost benefit tradeoff. Timely- results of performance measurement are fed back to the appropriate units in the most expedient way possible. Consistent- must provide a consistent framework that can be applied globally across the units or divisions of an entity.

Related Questions

note: Working managers may complete this exercise based on the practices of their own organizations. Students may complete this exercise based on the practices of a current or previous employer. Instructions 1. Select and describe the boundaries of the system of interest; the term âorganizationâ will be used to refer to this selected system. You may select a team, a department, a small organization (e.g., an office practice), or an entire organization. 2. To familiarize yourself with the criteria, review the section called âCategory and Item Descriptionsâ in the Baldrige Criteria for Performance Excellence available from: www.nist.gov/baldrige/ publications/hc_criteria.cfm 3. The Organizational Assessment Worksheet provides a general description of the criteria category followed by selected questions from the respective 2011â2012 Health Care Criteria for Performance Excellence category. 4. Based on the system selected in question 1, write a brief reply to the selected questions. Briefly describe your organization, including its services; size; geographic community; key patient or customer groups; and current facilities, equipment, and technology, as well as the number of patients or clients it serves. Briefly describe your organizationâs key challenges and your organizationâs current performance improvement system. How do senior leaders deploy your organizationâs vision and values through your leadership system, to the workforce, to key suppliers and partners, and to patients and stakeholders as appropriate? How do senior leaders encourage frank two-way communication throughout the organization? How does your organization conduct strategic planning? Summarize your organizationâs action plans, how they are deployed, and key action plan performance measures or indicators. How do you identify patient, stakeholder, and market requirements for service offerings? How do you build and manage relationships with patients and stakeholders to meet their requirements and exceed their expectations at each stage of their relationship with you? What are your key organizational performance measures? How do you use these data and information to support organizational decision making and innovation? How do you assess your workforce capability and capacity needs, including skills, competencies, and staffing levels? How do you address workplace environmental factors to ensure and improve workplace health, safety, and security? How do you design and innovate your work processes to meet all the key requirements? How do you improve your work processes to improve healthcare outcomes, to achieve better performance, to reduce variability, and to improve healthcare services? Provide data for one key measure or indicator of healthcare outcomes that is important to your patients and stakeholders. Provide data for one key measure or indicator of patient or stakeholder satisfaction. Provide data for one key measure or indicator of financial performance. Provide data for one key measure or indicator related to operational performance. Provide data for one key measure related to achieving legal, regulatory, and accreditation requirements. Prioritizing Improvement Opportunities 1. Review the responses to the organizational assessment questions. 2. Note any questions for which you could not provide a response (i.e., the organization does not have a defined process or approach to address the topic of the question). 3. Review the organizational performance results data. 4. Select one or more measures that demonstrate less than desirable results. 5. Select one item from question 2 or 4 as the performance gap for the performance improvement exercise .

magentachinchilla174

I need all the awncers to thease questions some timesyou onley give me te first three.Multiple Choice

Select the best answer to each question. Space is provided forcomputations after the quantitative questions.

____ 1. (CMA adapted) Which of the following isdecentralization least likely to accomplish?

a. Provide a pool of management talent.

b. Shorten decision time.

c. Heighten goal congruence.

d. Increase motivation of subunit managers.

____ 2. (CPA) Brent Co. has intracompany servicetransfers from Division Core, a cost center, to Division Pro, aprofit center. Under stable economic conditions, which of thefollowing transfer prices is likely to be most conducive toevaluating whether both divisions have met theirresponsibilities?

a. Actual cost

b. Standard variable cost

c. Actual cost plus a markup

d. Negotiated price

____ 3. Designing the transfer-pricing system ismost difficult in organizations that are:

a. highly decentralized with many interdependenciesamong subunits.

b. highly centralized with many interdependenciesamong subunits.

c. highly decentralized with few interdependenciesamong subunits.

d. highly centralized with few interdependenciesamong subunits.

___ 4. (CMA) Parkside Inc. has several divisionsthat operate as decentralized profit centers. ParksideâsEntertainment Division manufactures video arcade equipment usingthe products of two of Parksideâs other divisions. The PlasticsDivision manufactures plastic components; one type is madeexclusively for the Entertainment Division, while other lesscomplex components are sold to external markets. The products ofthe Video Cards Division are sold in a competitive market, but onevideo card model is also used by the Entertainment Division. Theactual manufacturing cost per unit of the Entertainment Division isas follows:

Plastics Components

Video Cards

Direct materials used

$1.25

$2.40

Direct manuf. labor

2.35

3.00

Variable overhead

1.00

1.50

Fixed overhead

.40

2.25

Total cost per unit

$5.00

$9.15

The Plastics Division sells its commercial products at full costplus a 25% markup based on cost and believes the proprietaryplastic component made for the Entertainment Division would sellfor $6.25 per unit on the open market. The market price of thevideo card used by the Entertainment Division is $10.98 perunit.

Assuming the Video Cards Division has no unused capacity, atransfer price to the Entertainment Division of $9.15 per unitwill:

a. allow evaluation of both divisions on acompetitive basis.

b. satisfy the Video Cards Divisionâs profit desireby allowing recovery of opportunity costs.

c. not motivate the Entertainment Division and willcause mediocre performance.

d. provide no incentive for the Video Cards Divisionto control or reduce costs.

e. encourage the Entertainment Division to purchasevideo cards from an external source.

____ 5. Use the information in question 4 but assumethe Entertainment Division is able to purchase a large quantity ofvideo cards from an external supplier at $8.70 per unit. The VideoCards Division, having unused capacity, agrees to lower thetransfer price to $8.70 per unit. This action will:

a. optimize the profit goals of the EntertainmentDivision while subverting the profit goals of Parkside Inc.

b. provide no profit incentive for the Video CardsDivision.

c. subvert the profit goals of the Video CardsDivision while optimizing the profit goals of the EntertainmentDivision.

d. cause mediocre performance in the Video CardsDivision because opportunity costs increase.

e. optimize the overall profit goals of ParksideInc.

____ 6. Use the information in question 4 and assumethe Plastics Division has unused capacity and negotiates a transferprice of $5.60 per plastic component with the EntertainmentDivision. This price will:

a. cause the Plastics Division to reduce the numberof commercial plastic components it manufactures.

b. motivate both divisions.

c. encourage the Entertainment Division to seek anexternal supplier for plastic components.

d. not motivate the Plastics Division, causingmediocre performance.

e. satisfy the Plastics Divisionâs profit desire byallowing recovery of opportunity costs.

____ 7. (CPA adapted) Mar Company has twodecentralized divisions, X and Y. Division X has been purchasingcertain component parts from Division Y at $75 per unit. BecauseDivision Y plans to raise the price to $100 per unit, Division Xdesires to purchase these parts from external suppliers for $75 perunit. The following information is available:

Yâs variable cost per unit

$70

Yâs annual fixed costs

$15,000

Yâs annual production of these parts for X

1,000 units

If Division X buys from an external supplier, the facilitiesDivision Y uses to manufacture these parts will be idle. AssumingDivision Yâs fixed costs cannot be avoided, what is the result ifMar requires Division X to buy from Division Y at a transfer priceof $100 per unit?

a. It is suboptimal for the company as a wholebecause X should buy from external suppliers at $75 per unit.

b. It is more profitable for the company as a wholethan allowing X to buy from external suppliers at $75 per unit.

c. It provides higher overall company operatingincome than a transfer price of $75 per unit.

d. It provides lower overall company operatingincome than a transfer price of $75 per unit.

ACCT I S 211 Study Guide - Midterm Guide: Employee Stock Ownership Plan, Profit Sharing, Human Relations Movement

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