Instructions:
Read the following scenario. Respond to the scenario with an essay laying out a managerial plan that is rooted in the Managerial Accounting knowledge that you have acquired thus far in the semester.
Try to use as many concepts as you can from the material that we have covered so far this semester. There is no required length or format. It should be a demonstration of professional writing, but points will only be deducted (based on writing quality) if writing is done in a manner that is distracting from the professionalism required from a proficient manager.
The idea is to put as many of the concepts that we have covered into practice as possible. If there are multiple ways of doing things that we talked about in class or that were covered in the readings, compare and contrast the benefits of each possibility. I am not interested necessarily in graphs or formulas. I am much more interested in concepts and how they relate to management skills or practices.
Do your own work. Do not plagiarize the book, the slides, or the lectures. I am interested in concepts being explained in your words. You don’t have to cite anything from the book, the slides, or lectures (since I assume this is where your information is coming from) but I don’t want you to use anything “word for word”. If you need/want to use outside sources, you can and these should be cited somehow, but you will not necessarily be rewarded for using outside sources.
You will NOT be rewarded for writing more than is necessary to cover the topics. One of the most important skills in professional writing is the ability to accurately describe something in a simple and straightforward manner. Do not use 3 pages to describe something that can be done in 3 sentences. If there are any assumptions that you need to make in order to evaluate or explain something, make them, but also make note that you are assuming something not included in the scenario.
Scenario:
You are the new Chief Operating Officer of Teslant Corporation. Teslant Corporation is in the business of producing 3 of the main components required to make the latest generation of Smart Phones. You are in charge of the entire operation of the corporation. The subunits of the corporation are as follows: (1) Administration Department; (2) HR Department; (3) Screen manufacturing division; (4) Processor manufacturing division;(5) Body manufacturing division, and (6) Sales Division
You have the following challenges as COO:
(1) The previous COO was fired because the CEO believes that the system of evaluation and compensation for managers has pitted too many divisions against each other.
(2) The CEO has only been with the company for two years. She comes from a company that was very successful and was hired here to “right the ship” and bring Teslant Corp. in the right direction. In her prior company, indirect costs were not allocated. She doesn’t believe it is necessary to allocate costs. You must convince her otherwise and suggest a system of cost allocation for Teslant.
(3) There is an investment proposal being considered that would have Teslant producing its own brand of smart phone (instead of just producing components to sell to other smart phone producers). You need to determine what you feel is the best way to evaluate this potential investment and explain it to the Board of Directors.
(4) You are in charge of the budgeting process and need to layout a framework for how you want the budgeting process to work and the reason for selecting whatever system of budgeting that you plan to use.
(5) You want to keep your job and do well enough to receive merit-based compensation this year (i.e. you are very motivated to perform well).