Wednesday, June 19, 2019

Discuss the behavioral issues involved in Merit inc.'s standard cost Assignment

Discuss the behavioral issues involved in Merit inc.s standard cost dilemma - Assignment Exampleof the employees the strategy does not offer a platform for the employees to work competitively in a bid to produce quality products, instead the system has offered an rarefied postal service which does not give allowance for errors in the processes and defects relative to the material usage. This has contributed to low productivity which is attributed to low morale level for work. On the other hand, the system has offered an ideal situation that has made it hard for the managers to achieve any set goal. This has led to a considerable decline of the managers motivation.In the case of the ternion responses from the plant manager, controller and human resources director, it is generally observable that the standard cost system provided an ideal situation which left the company not able to progress. In the case of the plant managers response the organization is suffering since all the ope rations are done in an ideal business environment which does not reflect the efforts of the employees thus killing their morale. This aspect has seen the organizations productivity decline considerably. The prefer of this response is that the management understands well that, there is deprivation of the standard system change to one that give be based on the expected actual prices and previous efficiency averages. This approach is advantageous since it will enhance identification of the variance relative to the level of improvement. In essence, this approach will enhance the employees morale for better results. In the case of the controllers response the organizational milieu is reflected as one operating in an ideal milieu, which is not profitable and achievable when measuring performance against an absolute standard. The advantage of this response is that offers an insight that the organization need to change tactic on nature of the cost standard. In this case the cost standar ds should be measured to equality relative to a golf course. This will enable the management to evaluate

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