Airtex Aviation - Cost Control Study Case

The current cost system allocates overhead costs once a year, as a function of direct labor dollars. This allocation strategy results in:

Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.

Southwest Airlines is a company that is known for its low ticket prices and profitability despite the highly risky industry in which it operates. This essay examines the cost behavior, cost volume profit (CVP), activity based costing (ABC), budgeting process, costing and decision making policies of the firm. The essay will discuss how the airline integrates these concepts in its daily operations.

Mutual cooperation and equal loads of work among colleagues can help improve partnership working as well.

The issue of ethical decision making has become more important in recent years for a variety of reasons. An understanding of ethical decision making in organizations is more significant to the development of organizational science. Managers engage in decision-making behavior affecting the lives and well-being of others. The individual responds to an ethical dilemma with cognitions determined by his or her cognitive moral development stage.

Accordingly, the corporation can capitalize either to buy over any of the existing airways or transfer a section of its fleet to the budget jetliners. In this context, the rear one is preferable to distribute the available resources. Ultimately, it must manipulate and screen the execution of the scheme.

This article attempts to explain how personal, cultural, and organizational values play significant parts in decision-making. In addition, the foundation of ethical dilemmas can

A few factors assume a part in the accomplishment of an organization that are past the extent of money related explanations alone. Authoritative culture, service rationality and morals in business each affect how well a business performs in the long term. Regardless of the size, business or level of gainfulness of an association, business morals are a standout amongst the most critical parts of long term achievement.

“Defining Moments” begins expresses the difficulty of resolving “right versus right” based on ethics decision making guides such as credos and mission statement. Ethics decision making guides are managers’ sources in relieving difficult situation. However, they can ‘t resolve right versus right” conflicts mainly because they “focus overwhelmingly on problems of misconduct and wrong doing” (Badaracco, 30). Grand philosophical principles do not help in answering ethical dilemma due contradictions between school of thoughts.

One of the best aspects of the way the time-driven ABC system was put into place at Kemps was how efficiently and accurately management determined the main issues with the current cost system and responded with appropriate and relevant solutions. For example, one of the greatest problems the company was facing was that many of its operating costs were spread out equally over a customer base that was growing more diverse and demanding more personalized and varied service, effectively cutting or potentially eliminating entirely Kemps’ profit margins for a product. Therefore,

Decision making considers all aspects of an organization. At CVS, ethics is most vital in the decision making process and are mirrored in the decisions made. The organization’s ethical framework is based on its mission statement, which is the guiding principle and filter for decision making (CVS,2010). This mission statement, includes the goal of improving the quality of human

By Kohlberg’s (1969) stages of cognitive moral development (SoCMD) cited in Crane and Matten (2010, p.154) Gabriel Resources, just like most businesses, operate at a conventional level which implies that employees are searching for guidance from superiors through various cues (Treviňo and Nelson 2007 cited in Crane and Matten, p.153) which further emphasizes the fact that the decision relies on the superiors of the organisation. Taking this into account, the author considers

Management constitute amongst major components of a company, organization or a business. As such, management oversees employees interactions with their supervisors and also control of people within a particular organization. Also, it includes critical and ethical decision-making process so as to address various ethical dilemmas experienced by employees while undertaking their respective assigned duties within the company. Ethical dilemmas are hereby to stay as issues usually arise now and then and place a variety of options that bear different repercussions. Therefore, it calls for ethical and critical decision-making skills so as to make the most appropriate option that bears more benefits in comparison to other options presented. While making ethical decisions, it 's substantially important to play heed to a certain ethical decision-making theory. This would enable an individual making the decision to ripe best possible consequences rather than living to regret. Moreover, ethical decision making is typically important in business as making a wrong decision may result not only in huge losses but also poor relationship amongst colleagues and miserable life for employee(s) working in a particular company or business in question.

Fourthly, The Airborne maintained low prices, provided tailored services and achieved higher efficiencies and lower cost in order to long run and remain competitive in the market. So, Airborne targeted business customers who shipped frequently and was able to better serve them through repetition and experience including using customization codes to provide tailored service to specific large business accounts. Moreover, Airborne had a high concentration of customers in metropolitan area and a high percentage of afternoon and second day deliveries, permitting it to use ground shipping more often than its competitors and save up to two-thirds the cost of air shipping (Exhibit 8). Finally, Airborne had total control of its airport hub, which is design as per the needs and expand to enclose warehouse space for its business customers. Furthermore, Airborne achieved greater efficiency in its shipping by utilizing 80% of shipping space therefore; Airborne lowered cost not having retail service centers, using independent contractor van services and it was more efficient by picking up and delivering more parcels per stop than FedEx. Hence, Airborne becomes a stronger competitor in the market due to low prices and provided excellent service to the customers.

All employees (including the company executives) should be guided by moral principles and ethical values when making decisions (Balc & Simionescu, 2012). The ability of executives to make ethical decisions can be influenced by their cognitive bias (Zeni, Buckley, Mumford & Griffith, 2015). Utilitarianism is one of the frameworks that can be used to address ethical dilemmas. Utilitarianism holds that decision makers should take alternatives that maximize the happiness of the majority of the stakeholders (Choe & Min, 2011 and Marques, 2015). This presentation will discuss how the 8-step ethical decision making process can be applied when addressing a dilemma using the utilitarianism framework. The presentation will also guide the executives of Toyota on how to address the negative publicity associated with the production of cars with faulty acceleration system.