BUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED A
BUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ABUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ABUSINESS Com 220 SUMMARY of CASE
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BUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED A
BUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ABUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ABUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ABUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ABUSINESS Com 220 SUMMARY of CASE STUDY LATEST SOLUTION RATED ACase Study: Leo’s Four-Plex Theater (textbook p. 19)
Leo bought the theater in a small town and hired his nephew bill as manager. The theater uses general admission
seating. And the tickets are pre-numbered, color coded for each movie, dated and stamped. The revenue can be
compared with total value of sold tickets. However the amounts are usually short. The attendants and many
customers know each other, then attendants often sale goods without cash register. Further, the number of the
stubs and customers never matched. There are large numbers of free-pass tickets signed by manager and ticket
collectors often give free-pass admission to friends.
Problems and suggestions:
1. The problems of theatre’s control system
(1) Lack of discipline
(2) Lack of supervisor
(3) Lack of motivation
-Discrepancies between cash counts and ticket counts.
-The mistake which attendant make collected wrong tickets.
-Abuse organization’s resource.
2. Suggestions for Leo's Four-Plex Theatre?
(1) Enhancing the discipline: standards of guiding employees’ behavior
(2) Setting supervision systems: CCTV, supervisor
(3) Implementing reward and punishment policies to motivate employees.
(4) Automation of selling tickets and refreshment.
Case Study: Wong’s Pharmacy (textbook p. 20)
It is a small and single-location drugstore owned by Thomas Wong founded by his father 30 years ago. All staffs
are family members. However, since a large drugstore chain opened a branch two blocks away, the performance
of pharmacy had not been good and got worse.
Problems and suggestions:
1. The main problem is lacking competitive advantage
2. The options are available to Thomas Wong?
Option 1: close the business
Option 2: improve the business performance by:
reduce the price and provide the special medicines
create business relationship (local health center)
provide service training and high quality service
create the customer loyalty
Additional readings: Kaplan, R. S., (1984), The Evolution of Management Accounting, The
Accounting Review, Vol. LIX, No. 3, pp. 390-418.
Historical development in cost accounting
1. in 19th century, accounting system resources from railroad and textile mall just focus on the direct costs—
material and labor
2. Late 19th century, Scientific management allocated the overhead costs to products and considered
depreciation in accounting, however the fixed cost still not be emerged
3. Early 20th century, development of modern cost accounting theories
Historical development of managerial control
1. As a decentralized and functional organization, DoPont Company seemed Return on Investment (ROI) to be
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