...MBA 540 Managerial Accounting Assignment 3 Yibo, Dong May 30, 2013 P 7-3: The Corporate Jet Question a: Describe the formula being used to calculate the cost per passenger mile flown. Answer: The allocation of corporate headquarters costs and service department costs, such as data processing and security, is in fact a form of transfer pricing within the firm. In fact, most cost allocation problems involve transfer pricing problems. In this problem, which at first appears to be a cost allocation question, is really a transfer pricing problem. In this problem, the formula being used consists of monthly expenditures for both fixe and variable costs divided by actual miles flown. Question b: As passenger miles flown increases, what happens to the cost per passenger mile? Answer: With the increase in the number of passenger miles, the average price charged falls. In my opinion, with the increase in the number of passenger miles, the variable costs will increase, but the fixed cost is fixed. Thus, the average price charged will fall. Question c: Describe what cause the monthly charge per passenger mile flown to fluctuate. Answer: In my opinion, the number of plane flying and the attendance rates cause the monthly charge per passenger mile flown to fluctuate. From the problem, we know the planes almost always fly full, at least in the nonwinter months. In the nonwinter months, the number of plane flying and the attendance rates is high. However, the number...
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...Specialized or Broad? Adam M. Prins Saint Leo University Case Summary The Bagby Copy Company is at a crossroads in terms of its organizational architecture moving forward. The company produces an array of copy machines and sells them worldwide. Currently, Bagby is deciding whether or not to specify production and sales by type of copy machine produced or by the country in which sales are to be made. Additionally, Bagby is deciding how to best group the makers of its wire harness assemblies which are required to operate its machines. The benefit of each of these options and the appropriate decisions remains to be discussed. Analysis Bagby is weighing a choice between two types of jobs: specialized task assignments or broad task assignments. Broad task assignments mean “employees are trained to complete more than one function” (Brickley, Smith, & Zimmerman, 2016, p. 412). Broad task assignments require more training to cross-train employees in the various functions required. This type of job generally requires more advanced education which can increase overall costs and flexibility as employees can cover for each other where needed to increase productivity. “Specialized task assignments allows the firm to match people with jobs based on skills and training” (Brickley, Smith, & Zimmerman, 2016, p. 412). This enables workers to work within a known specialty and perform one function well and, as a result, requires lower cross-training expenses. It allows managers...
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...Analyzing Managerial Decisions: Structuring Compensation Plans by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning December 8, 2013 Analyzing Managerial Decisions: Structuring Compensation Plans Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: Structuring Compensation Plans 1. Why do you think the compensation plans differ at the two firms? In particular, why do you think Kauffman’s pay commissions to salespeople, while Parkleigh does not? Why does Parkleigh offer employee discounts on purchases, while Kaufmann’s does not? A number of explanations exist for the difference between compensation plans of the two businesses. First, because Parkleigh’s operation philosophy may be that the sales incentive is the driver of sales rather than the fact that high customer service and friendly staff being the driver of sales, particularly when selling to the high end consumers. They may choose to have the sales staff keep the dressing rooms tidy and the clothes neatly placed. The appearance of displayed items has a favorable impression with patrons of the store which would increase store sales. Parkleigh’s employees may be offered the discount simply because he may think that if employees feel an ownership, the merchandise would be easier to sell to other customers. Because an employee is employed by store does not mean an employee can afford the products. Their products are more upscale and...
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...Analyzing Managerial Decisions: Granting Stock Options by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning December 8, 2013 Analyzing Managerial Decisions: Granting Stock Options Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: Granting Stock Option There are a number of studies that would argue a different method of motivating employees or offer advice in ways of accomplishing a task. Each way is supposedly, the best way to get the best results. The fact is, the no two people are the same and each has a different motivating factor. The thing that motivates one may not be what motivates the other. I am motivated by the positions of authority and money. Any other recognition would barely hold water with. My wife, has a different motivation. She enjoys helping people and gets a greats sense of worth from being appreciated, and recognized and valued as an employee. The way she sees it, someone taking the time out of their schedule to show appreciation is valued more than money. She will likely give you more effort and dedication for those types of praises. She will become more loyal at every show of appreciation; working for appraisal versus simply a normal pay raise. For me, money is what motivates me finding ways to increase the dollar value is always a challenge. The company, Bobby’s Burger, Bobby Jones is challenged with a similar situation; how to challenge his managers to exert...
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...Analyzing Managerial Decisions: eBay.com by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 24, 2013 Analyzing Managerial Decisions: eBay.com Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: eBay.com 1. How does ebay create value? Ebay brings together million of buyers and sellers to its online portal creating value through virtual shopping through auctioning for goods and services. Virtual auctioning serves as another concept of allowing consumers to shop from anywhere, other than conventional stores. Additional value is added by creating safe secure measure for buyers to make payment. Without a secure method of payment, customers will feel skeptical about making purchases. The feedback forum is a way for shoppers and sellers to learn about the product or service rendered through a rating using “stars.” 2. What potential contracting problems exist on ebay? The seller would possess asymmetric information regarding the item being sold and the condition the item is in. This outs the online buyer at a distinct disadvantage .One of the potential problems that may exist is the advertising of damage goods. Even though ebay has participants sign a user agreement, there no way to know if the product is significantly damage through a photos. Fraudulent selling of merchandise can be an issue because the product can easily be disguised and service inadequate. The product may not...
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...Analyzing Managerial Decisions: Medford University by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning December 1, 2013 Analyzing Managerial Decisions: Medford University Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: Medford University 1. Rather than approaching Medford University Human Resource department to propose a plan, President Kobayashi designated a task force to mull over the matter of fringe benefits. President Kobayashi designated a task force to reduce expenditures and develop a new fringe benefit package that was for the employees of the University. But while the analysis takes place, President Kobayashi does not want to disturb the value of the faculty or the staff. The president has designated a top administrator, to head the task force. He also appointed other various members to be a part of the task force, including the vice provost, who would function as the secretary of the task force.. These members are presumed to have specific knowledge that would help in the process of making the decision. If the president had asked the human resource department to put together a new benefits package, there may have been cause or concerns about who the package being created for upper class, the wealthy, and even show favoritism toward certain colleagues and staff members. 2) The president should supply the task force with a copy of the university’s financial report. The...
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...Analyzing Managerial Decisions: Bagby Copy Company by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning December 1, 2013 Analyzing Managerial Decisions: Bagby Copy Company Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: Bagby Copy Company 1. The subject, Bagby Company, has a dilemma between a specialized task assignment or broad task assignment. A specialized task entails designating an employee to a specific group of tasks that has a concentration in one functional capacity. In regards to broad task assignment, the worker is given a broader set of task that has variety. Depending upon which set of tasks is chosen, Bagby would have to understand what the tradeoffs are in making a decision. The benefits of specialized task assignment are: a) Exploiting Comparative advantage permits Bagby to pair their employee’s with jobs based on their particular skill set and training so they will be able to focus on individual specialties. b) Lower Cross Training Expenses: In regards to specialized task assignment, every employee is instructed to master a single basic function. Bagby can hire one person with a specialized degree and one without a degree. Cost of Specialized Task Assignment: a) Forgone Complementarities across Tasks: Often, accomplishing a single task may reduce the expense of tasking the same person to complete another task. b) Coordination Costs: The tasks of specialized...
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