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Group 14 20081014 20081029 20081044 20081059
Dimple Singh Mayank Gaur Rohan Sharma Vishnu Mangal
Case Facts
Time Zone – 1990’s Characters –Anil Chitkara, Chairman, president and treasurer
Major
Organization Structure
Major Issue
Profitability
T & D Corporation’s
account
Management Control System
Best
suited Management Control System for O’Reilley could be “Control of Operations” Preparation of project plan
Scope Schedule Cost
Communication
to employees about
the plan
Management Control System
Important
to fill the time sheets Timely reports Comparison of reports Deviations can be measured
Anil Chitkara’s report
Issues pertaining to Income Statement Cost of direct payroll was 88.2% (100*136,250/154,500) of revenue, in contrast to be less than 55% for being profitable. It was unclear why direct payroll under art category was charged; rather artwork was performed by T&D itself. It is unclear on what basis such a low commission & fees was charged to the client.
Anil Chitkara’s report Recommendations
Commission
and fee should be based on billing hour plus expenditure plus commission basis. And commission should be around 15%
Learning Outcomes
We
have learned that how management controls system in service industry differs from manufacturing industry. service industry primary assets are Human resources so more importance is given to employees work hour.
In
Thank You
This action might not be possible to undo. Are you sure you want to continue?