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Requirement 1. Describe the rationale that should govern systems design. How should a company such as Marks & Spencer decide what documents it needs and which can be eliminated?

Requirement 1. Describe the rationale that should govern systems design. How should a company such as Marks & Spencer decide what documents it needs and which can be eliminated?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Then the company must consider the which includes: O A. Knowing the managers strengths and weaknesses, their ability to communicate effectively with the employees, and their ability to concentrate on areas that deviate from the plan. OB. Collecting the data and preparing reports, educating managers to use the information, and the time to read, digest, and act on the information. C. Revaluating the breakeven point in units and dollars, reviewing all production reports, and implementing measures that would reduce waste and increase safety.
Transcribed Image Text:Then the company must consider the which includes: O A. Knowing the managers strengths and weaknesses, their ability to communicate effectively with the employees, and their ability to concentrate on areas that deviate from the plan. OB. Collecting the data and preparing reports, educating managers to use the information, and the time to read, digest, and act on the information. C. Revaluating the breakeven point in units and dollars, reviewing all production reports, and implementing measures that would reduce waste and increase safety.
Marks & Spencer, a huge retailer in the United Kingdom with sales of more than £9 billion, was troubled by its paper bureaucracy. Looked at in isolation, each document seemed reasonable, but overall a researcher reported that there was substantial effort in each department to verify the information. Basically, the effort seemed out of proportion to any value received, and, eventually, the company simplified or eliminated many of the documents. Requirement 1. Describe the rationale that should govern systems design. How should a company such as Marks & Spencer decide what documents it needs and which can be eliminated? The rationale that should underlie systems design is the cost-benefit balance . The aim is for the improvement in revenue and reduction in costs due to better decisions to outweigh the costs of the accounting system. Marks & Spencer should look at each of the management accounting reports it produces with an eye toward how it helps managers make better decisions. Does it provide needed scorekeeping? Does it direct attention to aspects of operations that might need altering? Does it provide information for specific management decisions? These types of questions will help identify the benefit of the information in the report. Then the company must consider the which includes: ○ A. Knowing the managers strengt 00 B. Collecting the data and prepar C. Revaluating the breakeven poi cost management plant capacity ability to communicate effectively with the employees, and their ability to concentrate on areas that deviate from the plan. hagers to use the information, and the time to read, digest, and act on the information. iewing all production reports, and implementing measures that would reduce waste and increase safety.
Transcribed Image Text:Marks & Spencer, a huge retailer in the United Kingdom with sales of more than £9 billion, was troubled by its paper bureaucracy. Looked at in isolation, each document seemed reasonable, but overall a researcher reported that there was substantial effort in each department to verify the information. Basically, the effort seemed out of proportion to any value received, and, eventually, the company simplified or eliminated many of the documents. Requirement 1. Describe the rationale that should govern systems design. How should a company such as Marks & Spencer decide what documents it needs and which can be eliminated? The rationale that should underlie systems design is the cost-benefit balance . The aim is for the improvement in revenue and reduction in costs due to better decisions to outweigh the costs of the accounting system. Marks & Spencer should look at each of the management accounting reports it produces with an eye toward how it helps managers make better decisions. Does it provide needed scorekeeping? Does it direct attention to aspects of operations that might need altering? Does it provide information for specific management decisions? These types of questions will help identify the benefit of the information in the report. Then the company must consider the which includes: ○ A. Knowing the managers strengt 00 B. Collecting the data and prepar C. Revaluating the breakeven poi cost management plant capacity ability to communicate effectively with the employees, and their ability to concentrate on areas that deviate from the plan. hagers to use the information, and the time to read, digest, and act on the information. iewing all production reports, and implementing measures that would reduce waste and increase safety.
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