Module 8 Review Questions Essay

True or False: A permanent magnet is a piece of material that has been magnetized and can hold its magnetic strength for a reasonable length of time. True.

Review Questions for Mid-Term 1) What constitutional clause allows laws enacted by the federal government to take priority over conflicting state laws?

The European conquest of America began as an offshoot of the quest for a sea route to India, China, and the islands of the East Indies, the source of the silk, tea, spices, porcelain, and other luxury goods on which international trade in the early modern era centered. Profit and piety-the desire to eliminate Islamic middlemen and win control of the lucrative trade for Christian Western Europe-combined to inspire the quest for a direct route to Asia. Long before Columbus sailed, Europeans had dreamed of a land of abundance, riches, and ease beyond the western horizon. They hoped America would bring them a

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.

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

By giving low-cost tickets prices southwest airlines attract to a broad base of salaries and the best cost provider strategy. They also separate themselves from their rivals by being different, an example of a broad differentiation strategy and they have no assigned seats, no baggage fee for the first bag.

The design and implementation and objectives of company controls are not adequate to meet the control objectives. The control environment control objective is ineffective. This control objective lacks a written policy on ethical conduct, is lacking oversight from the board of directors and audit committee, lacks a consistent style and philosophy from management, and lacks a strong commitment to competence. The risk assessment control objective is effective but lacks any antifraud program and controls. The information and communication control is ineffective. A virus has been detected and is affecting the files of the company. This control is lacking a strong IT department. The general controls financial reporting control objective is effective but is weak in detecting or preventing material misstatement. The monitoring control objective is ineffective; this control has need of an internal auditor.

Southwest Airlines also has flexible policies to ensure customers have a great experience. An example of their flexible policies is you can cancel a reservation up to 30 minutes prior to the flights take off. Southwest also have rewards programs that consist of earning points, points for purchasing flights that customers can use to purchase booked flights. It also has a partnership with Chase Bank and offers customers a Southwest credit card that allows them to accumulate points that they can redeem for future flights (Investopedia, 2015). Southwest also price matches on airline tickets. The competitive tactics that this airline is using are very effective price matching on the airline

2) (1 point) What kind of control is this control procedure – a preventive or detective control? Explain.

First, it illustrates a control system that is dominated by action and personnel controls, rather

Southwest Airlines is a passenger airline company that arranges and provides scheduled flights for passenger and transportation freight services. The company mainly provides, low-fare, point-to-point services all over the US and near-international markets. The headquarters is located in Dallas, Texas and as of December 2014, the company employed over 46,278 people. The company was founded by Rollin King and Herb Kelleher in 1971. Southwest was the first airline to introduce the frequent mile program. This took place in the mid 1980’s. This type of program allowed passengers to add up traveled miles to use later as credit on a future airline ticket. The traveled miles would add up and would also reduce the price of a ticket. Southwest created the idea of senior discount, fun fares and the fun packs. These were perks that attracted people from different age groups. When Southwest originally was incorporated, the idea was to operate in three cities in Texas, but after taking over Morris Air and TranStar in 1987, this gave them a cutting advantage in the airline industry.

Juarez requires improvements in quantity production, and problems with quality control, 3D printers, and shipping/damage. To increase the quantity of toys produced, they need more hours of training, and their equipment and process needs to be inspected and reviewed to determine why they had the largest amount of issues with quality control, 3D printers, and shipping/damages. While Dayton requires review into why their costs where the least favorable compared to standard. These types of actions fall under different types of control, pre, concurrent, and feedback. Pre-control occurs before the work is performed and is aimed at eliminating behavior that causes unfavorable results, such as training, while concurrently refers to employee performance or functioning equipment, and feedback refers to the post performance against standards (Omran, 2005, p. 32). Although corrective actions are to be taken due to deviations from the plan, there are other methods of determining deviations from the standard.

This, along with the fleet maintenance costs and gate acquisition costs are unavoidable costs. The main challenge for Southwest is to optimize its operations such as to make maximum utilization of resources and thus cut back on the operating costs. The practice of paying salaries higher than the industry average is also a concern because the employees now expect such benefits from the airlines.

Southwest does not use the standard, traditional "hub and spoke" flight routing system, accepted by most of the major airlines, preferring instead the "Point to Point" system, performing more than 3,200 flights a day (most of them are direct flight).

Southwest has a great reputation of treating their passengers like family, often telling jokes and word games during the flights. Southwest also treats their employees very well, offering a wide range of perks and benefits. Southwest employees are routinely the highest paid in the industry.