Bryan Haas has his own electronics retail chain, TechnoGeek. His stores sell computer parts, audiovisual equipment, consumer electronics, and related items. Custom computer building and electronics repair are also offered. In addition, TechnoGeek has a website to sell its merchandise. The store has a staff of 90 people working in six departments: Sales, Customization, Repairs, Web Development, Accounting, and Human Resources. Each department has its own manager.

Requirements:

1. For each of the six departments, describe at least one decision/action for each of the three stages of management (planning, directing, and controlling). Prepare a table similar to the following for your answer:

2. For each of the decisions/actions you described in Requirement 1, identify what information is needed for that decision/action. Specify whether that information would be generated by the financial accounting system or the Maria Dees is the new controller for Harmony Tennis, a designer and manufacturer of tennis attire. Shortly before the December 31 fiscal year-end, Harmony Sapp (the company president) asks Dees how things look for the year-end numbers. Sapp is not happy to learn that earnings growth may be below 10% for the first time in the company’s five-year history. Sapp explains that financial analysts have again predicted a 12%
earnings growth for the company and that she does not intend to disappoint them. She suggests that Dees talk to the assistant controller, who can explain how the previous controller dealt with this situation. The assistant controller suggests the following strategies:

a. Postpone planned advertising expenditures from December to January.

b. Do not record sales returns and allowances on the basis that they are individually immaterial.

c. Persuade retail customers to accelerate January orders to December.

d. Reduce the allowance for bad debts (and bad debts expense).

e. Harmony Tennis ships finished goods to public warehouses across the country for temporary storage until it receives firm orders from customers. As Harmony Tennis receives orders, it directs the warehouse to ship the goods to nearby customers. The assistant controller suggests recording goods sent to the public warehouses as sales.

Requirement:

Which of these suggested strategies are inconsistent with IMA standards? What should Dees do if Sapp insists that she follow all of these suggestions?

Transcribed Image Text:

Sales Repairs Customization Web Development Accounting Human Resources Planning Directing Controlling