Student
Final Exam
ACCT 6310
Spring 2012
Student Name:
Instructions:
1. There are 8 pages and 6 questions in this exam.
2. Please insert your answers below each question.
3. For each question, please provide detailed explanations supporting your answers where appropriate.
4. The duration of the exam is 2 hours and 30 minutes (You should finish by 10 PM).
5. After finishing the exam, please email me back your answers through Blackboard messages.
Question 1 (20 points)
Associated Media Graphics (AMG) is a rapidly expanding company involved in the mass reproduction of instructional materials. AMG is organized into a number of production departments, each of which is responsible for a particular stage of the production process, such as copyediting, typesetting, printing, and binding. An engineering department provides technical assistance to the various production units. Ralph Davis, owner and manager of AMG, has made a concentrated effort to provide a quality product at a competitive price with delivery on the promised due date. Expanding sales have been attributed to this philosophy. Davis is finding it increasingly difficult to personally supervise the operations of AMG and is beginning to institute an organizational structure that would facilitate management control.
One change recently made was the designation of operating departments as cost centers, with control over departmental operations transferred from Davis to each departmental manager. However, quality control still reports directly to Davis, as do the finance and accounting functions. A materials manager was hired to purchase all raw materials and to oversee the inventory handling (receiving, storage, etc.) and record-keeping functions. The materials manager is also responsible for maintaining an adequate inventory based upon planned production levels.
The loss of personal control over the operations of AMG caused Davis to look for a method of efficiently
ACCT 6310
Spring 2012
Student Name:
Instructions:
1. There are 8 pages and 6 questions in this exam.
2. Please insert your answers below each question.
3. For each question, please provide detailed explanations supporting your answers where appropriate.
4. The duration of the exam is 2 hours and 30 minutes (You should finish by 10 PM).
5. After finishing the exam, please email me back your answers through Blackboard messages.
Question 1 (20 points)
Associated Media Graphics (AMG) is a rapidly expanding company involved in the mass reproduction of instructional materials. AMG is organized into a number of production departments, each of which is responsible for a particular stage of the production process, such as copyediting, typesetting, printing, and binding. An engineering department provides technical assistance to the various production units. Ralph Davis, owner and manager of AMG, has made a concentrated effort to provide a quality product at a competitive price with delivery on the promised due date. Expanding sales have been attributed to this philosophy. Davis is finding it increasingly difficult to personally supervise the operations of AMG and is beginning to institute an organizational structure that would facilitate management control.
One change recently made was the designation of operating departments as cost centers, with control over departmental operations transferred from Davis to each departmental manager. However, quality control still reports directly to Davis, as do the finance and accounting functions. A materials manager was hired to purchase all raw materials and to oversee the inventory handling (receiving, storage, etc.) and record-keeping functions. The materials manager is also responsible for maintaining an adequate inventory based upon planned production levels.
The loss of personal control over the operations of AMG caused Davis to look for a method of efficiently