MANAGEMENT TOOLS:ACCOUNTING AND STATISTICAL MEASUREMENTS. Labor Problems and Legislation

Ch. 6 MANAGEMENT TOOLS:ACCOUNTING AND STATISTICAL MEASUREMENTS

6.1 Nature of Accounting
6.2 Periodic Procedures
Recording Transactions and Balance Sheet (3 elements below):
• Assets – properties that are owned and have monetary value (cash, inventory, buildings, equipment): current assets, investments, property (assets subject to depreciation: equipment and machinery, buildings, furniture, etc., assets subject to depletion: mineral deposits, oil, timber and etc), intangible assets (patents, trademark, copyrights, goodwill)
• Liabilities – amount owed to outsiders, such as note payable, accounts payable, bonds payable, income tax such can be allocated (current liabilities, long-term liabilities).
• Capital or Stockholders’ equity–the owner’s interest (assets minus liabilities).
Accounting equation assets=liabilities + equity
A transaction is an event that occurs during the fiscal period in a charge in the asset, liability, or capital accounts and consist in business papers, journals, and ledgers.
Summarizing information (posting)
Reporting and Interpreting Financial Data: ledger balances provide the basis for two basic statements, the income statement and the balance sheet.

6.3 Financial Statement Analysis
6.4 Amount and Percentage Changes (Horizontal Analysis)
6.5 Analysis by Ratio: working capital and current ratio. Quick or Acid-test Ratio.

Ch 7. Management Tools: Computers and Electronic Data Processing
Ch8. Personnel Management: Labor Problems and Legislation
8.1 Economic Theories of Wages
• the demand for labor
• the stage of business cycle
• the firm’s profit situation
• the degree of skill required
• the prevailing wage rate in area
• the cost of living in community
• the attractiveness of the position
• the supply of workers
Market Theory (labor as seller), Standard-of-Living Theory, and Ability to Pay

8.2 Methods of Compensation
• Straight Salary GAW- Guaranteed Annual Wage
• Wages (per hour) Fair Labor Standatds Act (section 8.8)
• Piecework
• Commission
• Shift Premium
• Fringe Benefits
8.3 History of Unions:
The Noble Order of the Knights of Labor
The American Federation of Labor
United Auto Workers
United Mine Workers
The Amalgamated Clothing Workers
The Congress of Industrial Organizations

The Union’s Weapons:
The Strike
Picketing
Sabotage
Slowdown
Boycott
Wildcat strike

The Management’s Weapons
Lockouts
Strikebreakers
Injunction
Blacklists
Yellow-dog Contract
Lobbyists
Employer’s Associations

8.4 The Contract
Union Security
Wages and Working Conditions
Work and Security
Agency shop
Arbitration
Check-off system
Closed shop (union)
Collective bargaining
Conciliation
Union shop
Craft unions
Featherbedding
Mediation
Open shop (union)

8.5 Legislation Affecting Labor
Sherman Act (1890) – antimonopoly low
Clayton Act (1914) - antitrust low
Norris-LaGuardia Act (1933) – outlawed yellow-dog contract
Wagner Act (1935) – no discrimination against workers for union
Fair Labor Standards Act (1938) – a floor for wages and for number of hours per week
Taft-Hartley Act (1947) – unions
Landrum-Griffin Act (1959) – unions
Equal Pay Act (1963)
Occupation Safety and Health Act (1970)

Manufacturing process
RISK MANAGEMENT / INSURANCE
Marketing and Distribution
ADVERTISING AND PERSONAL SELLING
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