ADMS 2510 Study Guide - Final Guide: Delicatessen

• School: York University
• Department: Administrative Studies
• Course: ADMS 2510
• Professor: Marcela Porporato

Document Summary

You are a management accountant with the divisional accounting office of bidco. Your supervisor has asked you to go to the uchumi store to resolve an issue the store managers has with the bakery manager about the fairness of the accounting information used with the bonus system. In order to remain viable and grow, bidco introduced sales and profit targets for retail stores. For an a -type store like uchumi, the weekly sales target is per square metre or, for this 20 000 square-metre store, . 5 million a year. Operating profits are to be 5 percent of target sales or 000 a year. Typically, store managers delegate responsibility for sales and operating profit to department mangers, ie. produce, dry food, bakery, and delicatessen. Within this system, the store managers and their department managers receive bonuses equal to about one-third of their salaries if the two targets are achieved.