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* If late submission of assignments or other work is accepted, 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 (Miss Eveline Indra) 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.

Management Control Systems 301

Semester 1, 2014

Portfolio questions

Question One

F.T. Electronics Company manufactures GPS devices for the fishing industry. In recent months, demand for the company’s products has fallen and, as a result, the firm’s production has been reduced significantly. Many unskilled workers have been temporarily laid off. However, top management has made a decision not to lay off any highly skilled employees, such as inspectors and machinery operators. Management was concerned that these highly skilled employees would easily find new jobs elsewhere and not return when production returned to normal levels.

To occupy the skilled employees during the production cutback, they have been reassigned temporarily to the Service Department. Here they are performing general service tasks, such as servicing equipment, repairing any equipment, and providing support to customers who have any questions on how to use the equipment. The skilled employees continued to receive their normal wages, which average $26 per hour. However, the normal wages for Maintenance Department employees average $15 per hour.

The supervisor of the Service Department recently received the February performance report which indicated that his department’s labour cost...