Question

Select all that apply:

Comparing a hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages.

Providing information for decision making and planning Assisting managers in directing and controlling operational activities Motivating managers and other employees toward the organization’s goals Measuring the performance of activities, subunits, managers, and other employees within the organization Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry

Developing a bonus reward system for the managers of the various offices run by a large travel agency.

Providing information for decision making and planning Assisting managers in directing and controlling operational activities Motivating managers and other employees toward the organization’s goals Measuring the performance of activities, subunits, managers, and other employees within the organization Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry

Comparing the actual and planned cost of a consulting engagement completed by an engineering

firm.

Providing information for decision making and planning Assisting managers in directing and controlling operational activities Motivating managers and other employees toward the organization’s goals Measuring the performance of activities, subunits, managers, and other employees within the organization Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry

Determining the cost of manufacturing a tennis racket.

Providing information for decision making and planning Assisting managers in directing and controlling operational activities Motivating managers and other employees toward the organization’s goals Measuring the performance of activities, subunits, managers, and other employees within the organization Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry

Answer 1

Answer 1 (Comparing a hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages):

Providing information for decision making and planning - On the basis of competitors' report the organisation may decide on inceasing or recuding rates/ costs and also plan on how to increase occupancy rate as compared to its competitors.

Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry - This comparison will enable assessment of competitive position as to where does the company stand in the industry and then measures can be taken to further improve the competitiveness and have continues patronage with the industry.

Answer 2 (Developing a bonus reward system for the managers of the various offices run by a large travel agency):

Motivating managers and other employees toward the organization’s goals: Incentives for good performances are always an additional motivation for employees to work more sincerely towards organisation goals. Also, since their personal rewards are linked to organisational success (like in bonus here), the employees will put in more efforts.

Answer 3 (Comparing the actual and planned cost of a consulting engagement completed by an engineering firm):

Measuring the performance of activities, subunits, managers, and other employees within the organization: The comparison of actual and planned data helps in evaluating the performances at different levels and help in assessing what went well and where measure are required for improvement.

Assisting managers in directing and controlling operational activities: The comparison of actual and planned can be used by the managers to correct major deviations within their sub-units.

Answer 4 (Determining the cost of manufacturing a tennis racket):

Providing information for decision making and planning: In case of some business opportunity, the management can decide whether it can take up the opportunity on the basis of its cost or how much reduction in cost is required to be able to take up the special order. Also, determination of cost and its further classification into fixed cost, variable cost, relevant cost, irrelevant cost would enable management to assess any business case.

Assisting managers in directing and controlling operational activities: The cost data available will assist managers in controlling costs at production level and also analyzing which are the costly operations and whether it would be beneficial to outsource them.