Standard Costing; Variance Analysis; Strategic Considerations In a Wall Street Journalarticle, the author notes that various retailers in the United States (e.g., Meijer, Gap, and OfficeDepot) are turning to consulting firms, such as Accenture, to develop engineered labor standards forcashiers and other retail workers. Monitoring labor-hour consumption (i.e., labor efficiency) undersuch standards involves timing from the first scan of an item in a customer’s purchase to the production of a sales receipt for the customer. A commentator for Meijer states that the system now in usehas enabled the company to more efficiently staff stores while concomitantly increasing customerservice ratings. A representative from another client of Accenture states that the new system allowsthe retailer to determine how many workers to schedule at a given time, resulting in a labor-costreduction of approximately 8%. Engineered standards were developed many years ago in a manufacturing environment, at places such as Westinghouse, by time-and-motion study experts. Unlikefactory workers, however, most retail clerks deal directly with customers. This raises interestingquestions as to whether and how the use of such monitoring (i.e., control) systems affects customerrelations, including customer satisfaction. Uncertainties associated with nonstandard transactions orevents are also thought to have negative motivational effects on employees whose performance isassessed using such engineered standards. (Source: Vanessa O’Connell, “Stores Count Seconds toCut Labor Costs,” The Wall Street Journal, November 13, 2008, pp. A1, A15. For additional information regarding “workforce-management systems,” go to the website of Accenture Ltd. (www.accenture.com/home.asp) and search under “Operations Workforce Optimization.”)Required3. What is it about the activities performed by cashiers that might complicate efforts to develop engineeredlabor standards for this context?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Standard Costing; Variance Analysis; Strategic Considerations In a Wall Street Journal
article, the author notes that various retailers in the United States (e.g., Meijer, Gap, and Office
Depot) are turning to consulting firms, such as Accenture, to develop engineered labor standards for
cashiers and other retail workers. Monitoring labor-hour consumption (i.e., labor efficiency) under
such standards involves timing from the first scan of an item in a customer’s purchase to the production of a sales receipt for the customer. A commentator for Meijer states that the system now in use
has enabled the company to more efficiently staff stores while concomitantly increasing customerservice ratings. A representative from another client of Accenture states that the new system allows
the retailer to determine how many workers to schedule at a given time, resulting in a labor-cost
reduction of approximately 8%. Engineered standards were developed many years ago in a manufacturing environment, at places such as Westinghouse, by time-and-motion study experts. Unlike
factory workers, however, most retail clerks deal directly with customers. This raises interesting
questions as to whether and how the use of such monitoring (i.e., control) systems affects customer
relations, including customer satisfaction. Uncertainties associated with nonstandard transactions or
events are also thought to have negative motivational effects on employees whose performance is
assessed using such engineered standards. (Source: Vanessa O’Connell, “Stores Count Seconds to
Cut Labor Costs,” The Wall Street Journal, November 13, 2008, pp. A1, A15. For additional information regarding “workforce-management systems,” go to the website of Accenture Ltd. (www.
accenture.com/home.asp) and search under “Operations Workforce Optimization.”)
Required
3. What is it about the activities performed by cashiers that might complicate efforts to develop engineered
labor standards for this context?

Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education