Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed


Actions employees may have taken include a



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Actions employees may have taken include
a
Adding steps in working on a shirt that are not necessary.
b
Taking more time on each step than is necessary.
c
Creating problem situations so that the budgeted amount of average downtime will be overstated.
d
Creating defects in shirts so that the budgeted amount of average rework will be overstated. Employees may take these actions for several possible reasons
a
They maybe paid on a piece-rate basis with incentives for above-budgeted production.
b
They may want to create a relaxed work atmosphere, and less demanding standards can reduce stress.
c
They may have a them versus us mentality rather than a partnership perspective. This behaviour is unethical if it is deliberately designed to undermine the credibility of the standards used at Textiles-Georges-Grassens.
3
Poitou-Chemises could use the France-Solutions information in several ways
a
For pricing and product emphasis purposes. Poitou-Chemises should avoid getting into a pricing war with a competitor who has a sizeably lower cost structure.
b
As indicators of areas where Poitou-Chemises is either highly cost competitive or highly cost noncompetitive.
c
As performance targets for motivating and evaluating managers.


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012

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