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Running Head: FINAL PROJECT PLAN1 TECHNICAL PAPER: FINAL PROJECT PLAN6 Technical Paper: Final Project Plan Marcos A. Ortiz Albino CIS 510 - Advanced Systems Analysis and Design Dr. Mark Cohen Strayer University December 13, 2015 Introduction Especially for You Jewelers is a small jewelry company in a college town. Over the last couple of years, it has experienced a tremendous increase in its business. However, its financial performance has not kept pace with its growth. Especially for You Jewelers wants to increase repeat sales to its existing customers; thus, it needs to develop a customer database. It also wants to install a new direct sales and accounting system to help solve the outlined problems. (Satzinger, Jackson, & Burd, 2012) This is not a unique scenario; in fact it is all too common for small businesses to experience this situation. The business world is constantly changing in many ways, new consumer devices, new services, and new technologies are always emerging. In order to keep space with these changes, the way organization developed software must also change. The implementation and deployment of any new system is a set of complex processes because they consist of so many interdependent activities. Of the right strategies are implemented, the benefits will outweigh the costs for these deployments and Especially for You Jewelers will be able to continue developing new systems for their daily processes. In order to provide the answers to the research questions, the technical paper will outline five expected business benefits that Especially for You Jewelers Company might derive from a new system. It will also propose at least five system capabilities for the company. Furthermore, it will ascertain the three possible scenarios in this new direct sales and accounting system. At last, the paper will present a system vision document for Especially for You Jewelers, detailing the overall vision or plan for the new direct sales and accounting system. Expected Business Benefits from New System The reason for presenting the business benefits from a new system are simple, to determine whether the benefits outweigh the cost. Every company has its own culture, and the new system must be in-line with it. Of course there is always a risk of the new system not meeting specified norms, making it virtually impossible to be deployed. The areas were Especially for You Jewelers will most benefit from are: · Reducing error rates through automated editing or validation: When recording the amount a customer owes Especially for You Jewelers, the total of the amount is recorded on the debit of the accounts receivables. These accounts pose a major challenge to management as they can turn out to be liabilities when the customers fail to pay. This error can be overturned with the new system since lost profits will be visible once more for the organization · Increasing market share in existing markets: Even though Especially for You Jewelers is do.
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Read Chapter 13 from Page 216-234 Based on the literature answer the followings questions (each answer is worth 1point): 1. What is a Management Control System? Mention the five steps to follow. 2. What is a standard setting process? How is this process setup? Chapter I 3 Standard Cost and Variance Analysis 'Tonifíhí we will uncinpt tn aiuwcr ¡hive memphvsiral qiiestitmK: I. How did ihv imiver^e come to be? 2. Wttiit is the metmins: of life? tintt.-?. Whui ihc ItcH are staruiani costs all ahoui?" Standard costs are widely used hy manufacturing organizations.In a survey of management accounting practices conducted inthe early 1990s, 67 percent of the respondents used standard cost systems.' Moreover, 87 percent of the respondents employed the same cost system for internal and external reporting.^ This chapter examines standard cost systems in a real-world set- ting. It covers the advantages and disadvantages of standard cost sys- 316 Standard Cost and Variance Analysis 117 terns, explains the standard-setting process, and shows how to perform variance analysis. The discussion focuses on manufacturing entities, the primary users of standard cost systems. Nevertheless, it also contains a section on standard costs in the service sector that explains how service organizations can use these costs. What Are Standard Costs? Standard costs are predetermined costs that are usually expressed on a per unit basis.^ They constitute a carefully formulated estimate of what future costs should be, based on a desired level of productiv- ity and process efficiency, and a set of assumptions about the operat- ing environment. The set of factors that can affect standard costs was discussed in Chapter 10 (see Figures 10-5 and 10-6). Standard costs generally consist of three major elements: labor, materials, and overhead. How to calculate each cost element and perform a cost roUup was discussed in Chapter 10. These procedures do not change under a standard cost system. However, in a standard cost system, the management team establishes the standards of per- formance up-front, such as the amount of labor hours required, the expected materials usage, the process yield, and normal scrap levels. These physical standards are priced and then added together to cal- culate the standard cost of the product or service. Once the standard cost has been established, it is typically not changed until the next standard-setting cycle. Standard Costs as a Management Control System Management control is the process by which managers influence other members of the organization to implement the organizational strategies. Figure 13-1 depicts the functions of a typical management control system.** The organization makes plans, implements these plans, and then has a mechanism to monitor the actual results against the plan. A standard cost system is part ofthe management control process. Other management control systems are budgets, per- formance evaluations, and ...
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