Managerial Accounting for Managers
Managerial Accounting for Managers
4th Edition
ISBN: 9781259578540
Author: Eric Noreen, Peter C. Brewer Professor, Ray H Garrison
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.2E

Controlling

Assume that you work for an airline unloading luggage from airplanes. Your boss has said that: on average, each airplane contains 100 pieces of luggage. Furthermore: your boss has stated that you should be able to unload 100 pieces of luggage from an airplane in 10 minutes. Today an airplane arrived with 150 pieces of luggage and you unloaded all of it in 13 minutes. After finishing with the 150 pieces of luggage: your boss yelled at you for exceeding the 10-minute allowance for unloading luggage from an airplane.

Required:

  1. How would you feel about being yelled at for taking 13 minutes to unload 150 pieces of luggage?
  2. How does this scenario relate to the larger issue of how companies design control systems?

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