Cyclone Car Company Tries to Assign Appropriate Responsibilities to All

question 51

Essay

Cyclone Car Company tries to assign appropriate responsibilities to all of its managers.Production managers receive reports which accumulate information of the shop operations for each plant.Plant operations are further aggregated in the report received by the vice president of manufacturing.These reports show the budgeted and actual operating results for the current month and year-to-date.These, along with inventory status reports, provide the major source of production information for the next planning period.Managers evaluate the variances between actual and budgeted amounts and determine whether operations are in or out of control.If variances are large, appropriate action is taken, i.
e., the plans are changed.The company's profits have been decreasing, and management has requested similar aggregate sales data from marketing.It is felt that this added information will suffice for its decision-making needs.Required:
Do you agree? Why? Do you foresee any needs that will not be met by this information? If so, what additional information do you suggest that management be provided by the management accounting system?

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Definitions:

Structural Forces

Encompass the societal, economic, and political structures that shape and constrain individual and group actions and interactions within a society.

Hegemony

The domination or leadership of one country or social group over others.

False Consciousness

A concept in Marxist theory that describes the scenario where oppressed classes are misguided about their real interests and conditions due to dominant ideological frameworks.

Subordinate Class

A social group that is positioned at a lower rank or status within a hierarchical society, often facing inequalities.