By Catherine Gowthorpe
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The implications of these theories for management accounting include the following: ● ● ● Control systems have to be carefully designed in order to elicit positive responses from the workforce; If theory Y is applied to managers themselves, their motivations may be more subtle than the purely economic one inherent in agency theory. A system of managerial incentives should reflect this complexity; Purely financial systems of ‘keeping score’ within the organisation may be too crude. Non-financial performance indicators are likely to be of importance too.
What are the direct costs involved in this process? Direct costs Direct materials Materials costs include: the cost of card, ink, possibly metal-leaf, envelopes and cellophane and, perhaps, a label. Direct labour ▲ Labour is required to: set up and operate the printing machine (this is a computerised process, but it involves some input of time), operate the machine which cuts and folds the card, package the card together with the envelope (at GHP Limited this is a completely manual process). qxd 4/21/08 5:01 AM Page 36 CHAPTER 3 PRODUCT AND SERVICES COSTING ▲ 36 Direct expense GHP Limited buys in designs from freelance designers.
2, Issue 1, pp 2–15. G. (1986) Organisation and management: an accountant’s perspective, Pitman: London. R. (2004) ‘Reflections on a half-century of organisational sociology’, Annual Review of Sociology, 30, pp. 1–21. Selznick, P. (1948) ‘Foundations of the theory of organisation’, American Sociological Review, Vol. 13, No. 1, February, pp. 25–35. SELF-ASSESSMENT EXERCISES The exercises following most of the chapters in this book are divided into those for which answers are provided at the end of the book, and those whose answers are available to lecturers via the book’s website.