Briefly describe the three basic technologies that characterize how work is done in service as well as manufacturing companies.
What will be an ideal response?
According to Joan Woodward, three basic technologies characterize how work is done in service as well as manufacturing companies:
• Small batch technologies-When goods or services are provided in very low volume or small batches, a company that does such work is called a job shop. In a small batch organization, structure tends to be organic, with few rules and formal procedures, and decision making tends to be decentralized. The emphasis is on mutual adjustment among people.
• Large batch technologies-Companies with higher volumes and lower varieties than a job shop tend to be characterized as large batch, or mass production technologies. Machines may replace people in the physical execution of work. Structure tends to be more mechanistic. There are more rules and formal procedures, and decision making is more centralized with higher spans of control. Communication tends to be more formal and hierarchical authority more prominent.
• Continuous process technologies-At the high-volume end of the scale are companies that use continuous process technologies, technologies that do not stop and start. People are completely removed from the work itself, which is done by machines and computers. People may run the computers that run the machines. Structure can return to a more organic form because less supervision is needed. Communication tends to be more informal, and fewer rules and regulations are established.
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Which of the following statements correctly identifies a difference between inside money and outside money?
A. Inside money has value because the government decrees that it has value for payment of taxes, while outside money has value because it is made using expensive metals. B. Inside money consists of wages and salaries earned by employees in the private sector, while outside money consists of wages and salaries earned by employees of the government sector. C. Inside money cannot be used for making purchases from foreign sellers, while outside money can be used for making purchases from foreign sellers. D. Inside money is created in the private sector, while outside money is created by the government or by nature.
Which of the following statements is TRUE of costing systems?
A) A process costing system would be used by manufacturers of custom-made perfumes. B) A job order costing system would be used by manufacturers of baking utensils. C) A construction company would likely use a process costing system. D) An accounting firm would likely use a job order costing system.
Which of the following observations refers to the term differential?
A. Excess of consideration exchanged over book value of net identifiable assets. B. Excess of fair value over historical cost of net identifiable assets. C. Excess of consideration exchanged over fair value of net identifiable assets. D. Excess of fair value over book value of net identifiable assets.
Gerald, a cash basis taxpayer, owns 70% of the stock of Black Corporation, a calendar year, accrual basis C corporation. On December 31, 2017, Black accrued a bonus of $80,000 to Gerald, and paid the bonus to Gerald on January 5, 2018 . When does Gerald report the bonus, and when does Black Corporation deduct the bonus? Would your answers change if Gerald was a 40% shareholder of Black?