Qualitative issues

 

Prepare a written response (in a Word document) addressing the following qualitative issues
listed below. Your qualitative response must be a maximum of 3,000 words. The word limit
is a MAXIMUM and not a requirement. If your group can provide a concise, comprehensive
answer in less than 3,000 please do so. Please use double spacing in your response. Bonus
marks may be awarded for exceptional responses. It is your groups’ responsibility to
determine a ranking of which issues your group finds are more important, you may choose to
include your ranking or even perhaps dicuss how you determined what is more important.
They can be issues that have not been suggested below. Your response should focus on
issues your group sees of higher importance, but it is important that all the issues below are
addressed in your qualitative analysis.
• What part of the analysis would need to change for the company to switch to the
weighted average valuation method? What effect does the different methods have on the
overall total product cost over the complete product lifecycle? Which of the methods
would you recommend for this manufacturer and why?
• Address the issue of the non-verifiability of the percentage complete and other ending
WIP details for the process which involves the outsourced function.
• The company uses FIFO for process costing, describe why there are two different unit
costs for products moving(transferred unit costs) from one process to the next and how
these costs can be used for decision making and process management. How do these two
unit costs effect our decision to use FIFO versus weighted average.
• What adjustments would need to be made in order for the company to adopt backflush
costing? What are the other internal control and strategic implications of adopting
backflush costing, and how can the negative aspects be mitigated? Based on the data as
presented what is your recommendation regarding the use of backflush costing.
• Should the company consider JIT? What would the impact be on the current process
costing method? Is there any relationship between JIT and backflush costing? Do you
think JIT is just an accounting “fad”? What lessons can this company learn from what JIT
can offer it?
• What approach can the company use if there are specific additional activities required for
a specifc client in a one-off production run? How can these costs be incorporated into the
product costs? How would this affect a customer profitability analysis?
• What management accounting related considerations would be important if the company
decided to move Operation 30 to a production facility in a foreign country? How does the
ownership of that facility affect those considerations?
• Actual costs are significantly higher than standard costs. Explain why this is the case and
what can be done to try to mitigate this issue besides changing the standards.
• Prepare one other useful visualization of the data you have been using in this case.
Include a screenshot of that visualization and include a paragraph discussing what this
visualization reveals and breifly describe how the data was manipulation to achieve the
visualization.

Sample Solution

uation. The first are situational characteristics, the environment in which the leader must perform, the second are leader characteristics, the experience, personal qualities and skills of the leader, and the third are member characteristics, the motivation, skill and experience levels of group members (Chelladurai and Madella, 2006). The situational characteristics and member characteristics have a required behaviour to ensure maximum group performance, they also have a preferred behaviour to ensure the satisfaction of group members, if the leaders actual behaviour matches both the required behaviour and preferred behaviour of the situation the consequence is maximum group performance and satisfaction. However, if the group are not performing and achieving goals or are not satisfied or both, then the leader is able to amend their actual behaviour to improve this. Leaders able to monitor performance and satisfaction, and understand what is required to amend the situation will achieve optimum group performance in Chelladurai’s model.
The one limitation of Chealldurai’s model is that it assumes the leader is in a position of complete positional power over the group, and can implement any leadership style of their choosing without constraints. Positional power is the authority and influence a leader has over a group, if the leader has positional power, they will be able to implement the leadership style they best see fit for the situation. Positional power cannot be measured or quantified, making it highly ambiguous and hard for a leader to understand whether they have it or how then can gain it. It becomes the responsibility of the organisation to have policies in place to provide leaders with some positional power, usually by establishing a clear hierarchal structure. By establishing a hierarchy, the leader is perceived by the group to be able to make demands and expect compliance from them giving the leader legitimate power (French and Raven, 1959). Secondly, by providing the leader with the ability to reward compliance and punish non compliance from the group, the leader has reward and coercive power (French and Raven, 1959). To obtain complete power over the group the leader must gain the trust and belief of the group that they are capable of success, by ensuring the group are both satisfied and meeting performance goals.
The importance of establishing a hierarchy became evident during the planning stage of the outdoor management course for the red team, the coordinators within the team assumed leadership roles but were unable to gain positional power due to the team being a peer group (Pettinger, 2007). The leaders selected had little authority and influence over the group as everyone was perceived to have the same rank, status and occupation, hence the leaders had none of French and Ravens five bases of power (Pettinger, 2007). The result was leaders with no positional power over the group, so could not direct the group with the method of leadership required for the situation. The task had significant constraints, particularly a short time frame and a large group size, for this situation Chelladurai recommends an autocratic leadership style would be most favourable (Chelladurai and Madella, 2006). The leaders attempted an autocratic leadership style, setting individual tasks for the group, however due to the poor leader member relations and lack of positional power the leadership structure quickly became a democracy. The product was an extremely unproductive workforce initially because of the time spent discussing how was best to approach the task. Because of how the leaders were perceived by the group there was little mutual trust, respect or confidence that the leaders were making the correct decisio

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