Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 6 - Master Budget and Responsibility Accounting - Assignment Material - Exercises - Page 234: 6-28(1)

Answer

Sales Contracts Handling: Responsibility: Office manager for handling contracts, sales representatives for securing contracts. Controllability: Office manager can control her handling of contracts; sales representatives can control their sales efforts. Risks/Costs: Decreased contracts for the office manager; potential unethical behavior. Solution: Investigate the situation and, if unethical behavior is found, address it. Improve communication and collaboration among the team.

Work Step by Step

Sales Contracts Handling: Responsibility: Office manager for handling contracts, sales representatives for securing contracts. Controllability: Office manager can control her handling of contracts; sales representatives can control their sales efforts. Risks/Costs: Decreased contracts for the office manager; potential unethical behavior. Solution: Investigate the situation and, if unethical behavior is found, address it. Improve communication and collaboration among the team.
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