Recruiters for Mountainview College were under extreme pressure to increase an enrollment goal by 10 percent. As a result, they admitted many students who were marginally qualified and who performed poorly in classes. This is an example of which problem associated with control systems?
A. overemphasis on means instead of ends
B. overemphasis on paperwork
C. overemphasis on one instead of multiple approaches
D. too much control
E. too little participation
A. overemphasis on means instead of ends
One barrier to successful control systems is overemphasis on means instead of ends. Control activities are not ends in themselves but the means to eliminating problems. Too much emphasis on means can lead to game playing, or "beating the system," as managers and employees manipulate data to seem to fulfill short-run goals instead of the organization's strategic plan.
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Replicated databases create considerable data redundancy, which is in conflict with the database concept. Explain the justification of this approach
Monaco Lawn Service Company creates revenue each time:
A) it is scheduled for service. B) amount is paid in full. C) a lawn is mowed. D) money is received in advance.
Explain how tailored sourcing can be used to improve profitability
What will be an ideal response?
Williams manufactures a variety of iron products, made to customer specifications, in small batches. Willie Williams, owner, is concerned that he does not have an accurate understanding of the costs of production. You, a newly-minted MBA, have researched his business and identified various costs and cost drivers.
The service departments (Janitorial, HR, and Data Services) are allocated to the two production departments (Welding and Assembly). Janitorial costs are allocated using square feet, HR using number of employees, and Data Services using number of transactions. You recall that there are several approaches to the allocation of service department costs, direct, step-down and reciprocal methods.
If the step-down method is applied, allocating the most costly department first, which is true?
A. Janitorial's total costs after allocation are $18,036.48
B. Assembly's total costs after allocation are less than $100,000
C. Janitorial is allocated $3,953.28 from Data Svcs
D. HR's total costs after allocation are $50,160
E. None of the above