In Book Introduction to Managerial Accounting (8th Edition), Q: Exercise P-2 Controlling
Assume that you work for an airline unloading luggage from airplanes. Your boss has said that, on average, each airplane contains 100 pieces of luggage. Furthermore, your boss has stated that you should be able to unload 100 pieces of luggage from an airplane in 10 minutes. Today an airplane arrived with 150 pieces of luggage and you unloaded all of it in 13 minutes. After finishing with 150 pieces of luggage, your boss yelled at you for exceeding the 10 minute allowance for unloading luggage from an airplane. Q: How would you feel about being yelled at for taking 13 minutes to unload 150 pieces of luggage? How does this scenario relate to the larger issue of how companies design control systems?
Controlling Analysis
The worker should not felt good about being yelled at for taking 13 minutes to unload 150 pieces of luggage this is because his boss gave him a target to unload 100 pieces of luggage in 10 minutes, but there is an increase in pieces of luggage and his boss did not informed him how much time he should take to unload them.
If he is getting 10 minutes to unload 100 pieces of luggage than 15 minutes should be given to him to unload 150 pieces but he finished his work 2 minutes earlier instead of rewarding him he yelled at him for not completing the work in 10 minutes which is wrong as worker did his work promptly.
so, the worker should feel disappointed,angry. This demotivates the worker.
The managerial accounting also know as management accounting is used in the business organisations in the form of accounting which helps the managers to help them in understanding the environment in a better way which helps in aid in management and controlling the performance.
In managerial accounting the company design control system in a way concerning following -
In Book Introduction to Managerial Accounting (8th Edition), Q: Exercise P-2 Controlling Assume that you work...
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In the Book Introduction to Managerial Accounting (8th Edition) Solve for Exercise P-6 Enterprise Risk Management: For each industry, provide example of business risk faced by companies that compete within that industry. Then, describe an example of a control that could be used to reduce the business risk that you have identified. 1. Delta Airlines: 2. Pharmaceutical drugs (Merck): 3. United Parcel Services: 4. Bank of America: 5. ExxonMobil: 6. e-Bay: 7. Toyota: