Management Control Systems:
Portfolio:
The portfolio is to be completed individually. Answers are to be written in lay language but must indicate a sound conceptual understanding of the key issues. It is to contain:
• A word processed document (please spell check and grammar check your document).
• A completed Portfolio Cover Sheet attached to the front of the portfolio (available in the Assessments tab on Blackboard).
• Please answer the questions directly. You don’t need to write an essay for the portfolio, you just answer the questions individually within the maximum word limit. All material in excess of the word count will not be marked.
• There is no need to provide extensive definitions; the focus is on how you apply the theories and concepts to the cases in the portfolio. You will need to reference for this portfolio and your reference list does not have to exceed a page. The referencing style for this unit is Chicago, more information can be found on this style from the library web site: https://library.curtin.edu.au/
• The work you submit must be your own. Significant penalties are imposed where assessments are found to be plagiarised. The University policy on Academic Integrity can be found on this webpage: https://academicintegrity.curtin.edu.au/home/
• Late submission of assessments is accepted, however, students will be penalised by ten percent per calendar day for a late assessment submission (e.g. a mark equivalent to 10% of the total allocated for the assessment will be deducted from the marked value for every day that the assessment is late). The minimum mark after penalty is zero. An assessment more than seven calendar days overdue will not be marked.
• Extensions to the assignment due date will only be considered by the Unit Co-ordinator (Dr Yuningsih) and will be granted only in extreme circumstance. Applications for extensions must be received in writing prior to the due date and be accompanied by supporting evidence.
Question 1 (word limit: 500 words):
The controller in social services division of a government organization, Bruce William, believes that the implementation of participative budgeting process will lead to improvement in the productivity of the division’s departments. Therefore, he has implemented several budgetary procedures. Three of them are identified below:
1. An appropriation target figure is given to each department manager. This amount represents the maximum funding that each department can expect to receive in the next fiscal year.
2. Department managers develop their individual budgets and the controller’s staff consolidates the requests from the various departments into one budget for the entire division.
3. Upon final budget approval by the legislature, the controller’s staff allocates the appropriation to the various departments on instructions from the division manager. However, a specified percentage of each department’s appropriation is held back in anticipation of potential budget cuts and special funding needs. The amount and the use of this contingency fund is left to the discretion of the division manager.
Required:
1. Identify four deficiencies in Bruce’s procedures for the budgetary process
2. For each deficiency identified in requirement (1), recommend how the deficiency can be corrected
Question 2 (word limit: 500 words)
Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are opening a small stationery and gifts store across the street from your University campus. How might that business be operated under each of the two broad strategies? Your answer should address the following specific operational areas:
a. target customers
b. products offered
c. product pricing
d. location choice
e. advertising content
f. advertising media
Question 3 (word limit: 300 words )
Discuss the possible problems a corporation might have if its operations are totally decentralized.