BUS 630 Managerial Acctg DQ's

BUS 630 Managerial Acctg DQ's - BUS 630 Managerial...

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BUS 630: Managerial Accounting Week 1 1. The Theory of Constraints Apply the Theory of Constraints to your own working environment (past or present). Explain why your organization doesn’t have unlimited resources (space, a24zagywb7666einventory, product line, etc). Explain why there are always limits to what your organization can do. Respond to at least two of your fellow students’ postings. Noreen (2011) denotes a constraint as “anything that prevents one from getting more of what they want; thus, the theory of constraints is based on the insight that effectively managing the constraint is a key to success” (p. 10). Volunteering for a nonprofit organization, I see money as the main constraint that we face. Being an organization based solely on charitable contributions, we do not have access to unlimited resources. The limits of what our organization can offer are defined by these contributions and tend to fluctuate when the economic climate fluctuates. When citizens are financially stable, they are more able and willing to donate to our organization; conversely, when people are struggling financially, their charitable donations seem to diminish. Noreen (2011) suggests an organization should focus its efforts on the weakest link in order to bring the biggest benefits” (p. 10). Although we would like to be able to do more for our citizens, we are only able to provide a certain level of support to our community, and that level of support is based on the amount of cash we bring in through donations and fundraising. In order to strengthen the process in which we operate, we would need to start by improving the biggest weakness; which, in our case, is declining donations. Instead of simply hunkering down and hoping for better results in the future, we can organize more fundraisers, in addition to requesting government funding, so that we can continue to thrive and grow despite difficult times. Noreen, E. W., Brewer, P. B., Garrison R. H. (2011). Managerial accounting for managers (2nd ed.). New York, NY: McGraw Hill 2. Kranbrack Corporation M.K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the
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year, and Gallant concluded with two weeks of the end of the fiscal year that it would impossible to ultimately report an increase in earning as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year – including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-the-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product
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BUS 630 Managerial Acctg DQ's - BUS 630 Managerial...

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