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To write discussion post for given answer.Min 350 words for each task.
Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel free to use more words) and a minimum 350 word response to another students original post is required.
Question 1
Senior Security Co. offers a range of security services for senior citizens. Each type of service is considered within a separate department. From a Performance Measurement and Responsibility Accounting perspective (i.e. chapter 24 of your textbook), Mary Clark (the overall company manager) is compensated on the basis of departmental performance by staying within the quarterly cost budget. She often revises operations to make sure departments stay within budget. Says Mary Clark, “I will not go over budget even if it means slightly compromising the level and quality of service.
DISCUSS
Answer1
I believe the problem here is with the company Senior Security Co. and not with Mary Clark. The main concept I have to disagree with is basing Mary Clark’s compensation on if she stays within the quarterly cost budget. While I do not think basing compensation off of the ability to stay within a budget is a bad idea, I believe there should be other considerations to take into account. I do not find anything wrong with Ms. Clark often revising operations to stay within budget, and stating that she will compromise the level of security to stay within budget. I do find a problem that a security company is willing to reward managers who stay within budget, rather than considering additional factors of customer service and levels of security. Ms. Clark is looking after her own self-interests; which are her job and her pay. If she often goes over budget, she might be seen as a bad manager. If Ms. Clark often goes over budget, then she is constantly receiving lower pay. I believe that Senior Security Co. manager compensation policy should be changed to allow for the consideration of additional factors.
A major problem with the current policy of Senior Security Co. is that it can potentially do irreversible harm to customer satisfaction. Security is a very important concern, especially when it concerns those who are much more vulnerable such as the elderly. Senior Security Co. mainly offers security services for senior citizens. If there is a lack in the level of security, then Senior Security Co. no longer has a viable product to offer. If multiple senior citizens were robbed and assaulted because of the lack of security, then customer satisfaction of Senior Security Co. would reduce sharply. Their main client base would stop trusting the company and business would surely fall as word spreads. I think it would be useful for Senior Security Co. to add a policy that bases compensation on levels of security, as well as the ability to stay in budget. The policy could be something like the ability to keep crime levels down below the city’s average. Adopting this policy would show that Senior Security Co. is offering a valuable service. This would bring customer satisfaction up and possible bring in new customers.
To write discussion post for given answer. Min 350 words for each task.
Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel free to use more words) and a minimum 350 word response to another students original post is required.
Question2
- Capital Budgeting and Managerial Decisions may relate to corporations, partnerships, proprietorships and to you as an individual. To that end, get the lease and purchase information for a particular automobile (identify chosen vehicle). Look at the down payment required and the required monthly payments. You will likely find that most dealerships do not focus on the total cost of the automobile but instead try to focus your attention on the affordability of the monthly payments. This chapter gives you tools to determine the total cost of ownership and the advantages or disadvantages of asset ownership (i.e. either via leasing or purchasing).
Discuss (i.e. explain in depth) your opinion on whether it is best to lease or purchase the specific vehicle you are discussing. Keeping in mind that you may have both financial and nonfinancial considerations.
Answer.
I am actually in the market for a new car, and I have been looking at the Toyota RAV4 for some time now. One obstacle that is hard to jump over is whether to lease or buy the car. The biggest advantage of leasing a car is the lower monthly payments (with very little or low down payment). The biggest disadvantage is the fact that it technically isn’t your car, so you have to treat it with utmost care, because you are going to end up returning it. If the car was yours by purchase, you’d be more comfortable and at ease, knowing that you don’t have to give it back in three years. I like the idea of leasing, because you can drive a better car for less money. Realistically, however, I want to buy the car and not lease it since my family has always only bought vehicles. It’s just out of tradition and it feels right to maintain it.
To lease a 2017 RAV4, the down payment is $1,999 with monthly payments of $239 per month for 36 months. So in total, I would be paying $10,603 for a total of three years. To purchase the same car is going to cost $24,910 with 0% APR for the first 60 months. The total depreciation for the car for three years will be $9,647 if the average depreciation rate is used. That means, by the end of year three, the car will be worth about $15,263.
If I decided to sell the car after three years, I would lose $9,647 because of depreciation. If I leased the car, I would lose $10,603 because leasing doesn’t incur depreciation. In terms of financial considerations, it would be better to buy the car because of the difference being only $1,000. Which in the total scheme of things, it’s not a big difference: it comes down to the non financial considerations. There are many ups and downs in my life: many changes in my work, school, and family situations. For this reason, I want to feel like I have some sense of stability, and so that is why I choose to purchase, rather than lease a car. It’s not that I’m not responsible enough, it’s more that I am going through a time in my life where I’m still figuring things out (I’m in my early twenties), and so I want my first commitment to be on my car
