1. What types of control – feedforward, concurrent, or feed back – do you think would have been most useful in this situation? Explain your choices. All these types of controls are useful in this situation. They are ways of communication before, during and after and audit is done. One was actually used before the explosion happened and that was feedback. In the article it describes where an audit was done and there was feed back given to BP in regards to some matters that required immediate
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internal control mechanisms and provided answers to the president’s questions. This report advises the President on new internal control requirements, what the company is doing well, and identify what they are doing wrong. Additionally, review the proposed purchase of an indelible ink machine by the company. Internal Controls is so critical that the U.S. Congress has passed a law, The Sarbanes-Oxley Act, to require public companies or those going public, to maintain a system of internal controls and
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will you recommend? Briefly explain your supporting calculation! Management Control System - TA Genap 1516 By: Natalis Christian, SE., MM. 1 Answer 01. Project A NPV = ((PVIF, 8%, 2 years) x $ 1,440,000) - $ 1,000,000 IRR = ((PVIF, ??%, 2 years) x $ 1,440,000) - $ 1,000,000 = 0 Project B NPV = ((PVIFA, 8%, 2 years) x $ 686,342) - $ 1,000,000 IRR = ((PVIFA, ??%, 2 years) x $ 686,342) - $ 1,000,000 = 0 Management Control System - TA Genap 1516 By: Natalis Christian, SE., MM. 2 Answer 01. Modified
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earnings growth has been slowed down since 1987 amid economic downturn, to achieve greater growth, the management control system is being tailored to local environment to better align the behavior of employees with the objectives and strategies of the organization. Performance-based compensation system covers result controls that provide incentives to boost sales and also action controls, particularly behavioral constraints in this case restrict employees’ actions. Issues identified Talent Retainment
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Elements of Results Controls Albert (Al) Fiorini should continue running his business of Atlanta Home Loan (AHL) which is mortgage lending and financing company. He needs to fight to regain control over AHL perhaps only about $25,000 worth of equipment left. In other to get back his business Al can apply elements of results controls which require four steps. First, Al must define the dimensions. He must defining the right performance dimensions although is critical because the goals that are set
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types of control-feedforward, concurrent, or feedback-do you think would have been most useful in this situation? Explain your choices? The Deepwater Horizon failed to reach numerous protocols involving health and safety. The most useful control technique would be with feedforward control, this is because it would have provided better results for testing and requirements for deep water drilling platforms and machines. There was no excuse for BP on why they weren’t keeping concurrent control so at
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COMPANY ANALYSIS RUDDY FERBIANTO MANAGEMENT CONTROL SYSTEM INTERNATIONAL-BATCH62 Vershire Company has several division and one of the largest one is the alumunium can division. This division is one of the biggest can manufacturers in United States. However, the market characteristics in which the customers loyalti is low and entry barriers does too. One of the Vershire’s strategies is to have lean production system along with tight control over their plants,budgets, and performance to have
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Management and control Chapter 1 Management relates to the process of organizing resources and directing activities for the purpose of achieving organizational objectives; consist of 4 phases: 1. planning • mission; reason of company’s existence • vision; what to do to reach the mission • objective • strategy; Corporate S.(expansion/ shutdown/ no change) Business unit S. (Differentiation, cost leadership, focus)
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Chapter 4 Case 4-1. Vershire Company Questions: 1. Outline the strengths and weaknesses of Vershire Company’s planning and control system. Vershire’s planning system Strengths: When formulating the sales budget, divisional managers are required to predict market conditions and capital expenditures. The frocasting is done at the corporate level and is then sent to the divisional managers for fine-tuning. Corporate controllers visit each plant for half a day prior to the final submission
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LBJ Company would be required to keep an adequate system of internal control. If a company is found to be out of compliance of this law they are subject to fines and possible imprisonment for its officers. LBJ Company would also have to have outside auditors attest to the adequacy of its system. In order to create a good system of control LBJ Company needs to meet 5 primary components. A control environment, risk assessment, control activities, information & communications, and monitoring. Currently
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