The Dean of the W.P. Carey Business School, wants to make sure that the MACC program is successful. Use the levers of control framework to design a control system for the program director and faculty. Give specific examples of each of the controls, and explain what behaviors you are trying to encourage or prevent.

Answer the following questions: (a). Design a balanced scorecard for the general manager of a low-cost hotel such as a Holiday Inn or a Days Inn. Explain what dimensions should be included and why (use a strategy map), and include 2 or 3 performance measures for each dimension. (30 points)  (b). What is the advantage of using a balanced scorecard relative to rewarding financial performance alone? Are there any disadvantages? (10 points) (c). Some firms keep their hotel managers at the same hotel for many years, while other firms rotate managers (transferring them to a new hotel) every 2-3 years. When would it be relatively more beneficial to use a balanced scorecard: when managers stay in their division or when they rotate? Explain your answer. (10 points) Clearly separate the answers to the three parts.

A firm has two divisions, A and B, that operate under similar conditions. The divisions are evaluated based on EVA. The firm increased the bonus amounts that division A managers could earn in 2024, and saw the following performance: 2023 EVA 2024 EVA Division A [a] [b] Division B [c] [d] Given this information, estimate the effect of the new bonuses on the performance of division A. If the new bonus amounts increased EVA by $17.5, write 17.50. If they decreased EVA by $17.5, write -17.50.

39. Which of the following is the last step in the ethical decision-making process?      

A division (S) of a firm manufactures a component that it sells to external customers at a price of $[a] per unit and is also used by another division (B) to assemble a final product. Division S operates with a fixed cost of $[b],000 and a variable cost of $[c] per unit. The division can produce up to 10,000 units/month, but is currently producing at full capacity. Division B wants to increase the number of components it gets from S. Calculate the lowest price that the firm should set for the internal transfer of the additional components.

23. Which of the following was called “a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression”?    

At the end of fiscal year 2011, a company reported direct labor cost of $150,000 which exceeded the budget of $130,000. The budget allowed for an average hourly rate of $20 while the actual average rate was $25. The price variance is [pvar] [pvarsign]. The quantity variance is [qvar] [qvarsign].

26. Which of the following is an independent agency within the Federal Reserve System that “regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws”?      

31. Optimization is defined as which of the following?    

27. Which of the following was created by the Sarbanes–Oxley Act to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing?