Managerial Accounting 12th Canadian Edition by Ray Garrison Solution manual

 
1-8      Planning, controlling, directing and motivating, and decision making must be performed within the context of a company’s strategy. For example, if a company that competes as a product leader plans to grow too quickly, it may diminish quality and threaten the company’s customer value proposition. A company that competes in terms of operational excellence would select control measures that focus on time-based performance, convenience, and cost. A company that competes in terms of customer intimacy may decide against outsourcing employee training to cut costs because it might diminish the quality of customer service.
1-9      The six business functions that make the value chain are: (1) research and develop-ment; (2) product design; (3) manufacturing; (4) marketing; (5) distribution; and (6) customer service.
1-10    Examples of things socially responsible organizations should provide for their employees include: (1) safe and comfortable working conditions; (2) fair compensation; (3) job-training and opportunities for advancement; and (4) non-discriminatory treatment and the right to file grievances;
1-11    Airlines face the risk that large spikes in fuel prices will lower their profitability. Therefore, they need to estimate future fuel prices and create a business plan based on these estimates.  Monitoring actual fuel prices as compared to plan may lead to decisions to change ticket prices, for example.  Further, exposure to fuel price spikes may lead to the decision to reduce this risk by spending money on hedging contracts that enable them to lock-in future fuel prices that will not change even if the market price increases.
            Steel manufacturers face major risks related to employee safety, so they create and monitor control measures related to occupational safety compliance and performance.
            Restaurants face the risk that an economic downturn will reduce customer traffic and lower sales. They reduce this risk by choosing to create menus during economic downturns that offer more low-priced entrees.
1-12    Having a good ethical reputation is important to companies in maintaining good relations with suppliers, employees and customers. Companies with a poor ethical reputation will likely have trouble finding suppliers for their raw materials, will have difficulty attracting and retaining employees, and will not be attractive to potential customers. Thus, in the long-run having good relations with stakeholder groups is critical to a company’s survival.
1-13    Companies prepare a code of conduct to demonstrate their morals and values system, often in part to demonstrate corporate social responsibility. The code of ethics indicates what is expected of all employees and directors in their dealings with various stakeholders.
 1- 14  Organizations are managed by people that have their own personal interests, insecurities, beliefs, and data-supported conclusions that ensure unanimous support for a given course of action is the exception rather than the rule. Therefore, managers must possess strong leadership skills if they wish to channel their co-workers’ efforts towards achieving organizational goals.
1-15    The company could use emissions metrics and tests to monitor whether pollution (e.g., greenhouse gas emission) is within allowable limits.
1-16    Intrinsic motivation comes from within whereby individuals are motivated to succeed at something because they take personal pride and enjoyment in doing so. Extrinsic incentives are provided by someone else (e.g., an employer) and are usually in the form of monetary compensation for work done or goals achieved.