This is for MBA Accounting Management using “Accounting for Decision Making and Control”, 5th edition by Jerold L. Zimmerman.
The answer for all 3 questions should 1- 2 pages.
Case scenario: Eastern University Catalog
Eastern University publishes and distributes over 100,000 copies of its Official Bulletin on Undergraduate Studies to prospective students, high school guidance counselors, faculty and staff of the university, and other interested parties. This 250-page catalog with four-color pictures is one of the primary marketing devices for the university’s undergraduate programs. High school seniors expressing interest in attending the university receive the Bulletin along with other information about the university. It lists the various programs of studies, course offerings, and requirements. Each year it is revised and reprinted as courses and programs change, and the photographs are updated to improve it as a recruiting tool. The annual cost of preparing and printing the Bulletin is about $1 million, which includes the cost of photographers, nonunitversity graphic designers, typesetting and printing but excludes the cost of university employees who rewrite the text, proofread the galleys and manage the entire process
The responsibility of preparing the catalog is shared by the admissions office and public relations. The admissions office coordinates collection of the basic data on course and program changes. Many of these are not known until May, after the various faculties have met and approved academic program and course changes. These changes are edited and the overall content of the publication is determined based on admissions office’s experience with high school applicants. Admissions then send a draft copy of the brochure to public relations. Public relations is responsible of the overall image and publicity of the university and for ensuring that the university publications present a consistent image. Public relations, using outside graphic designers, marketing specialists, typesetters, and printers its staffers have come to know, takes the changes and produces an attractive, high-quality brochure. Admissions reports to the dean of the undergraduate college, who reports to the president. Public relations report to the vice president of external affairs, who reports to the president. The admissions office affects the cost of the brochure in terms of the quantity of text to be included and how many Bulletins must be ordered to satisfy its distribution plan. Public relations affects the cost by using more color photographs, more expensive paper and cover materials, and elaborate layouts. Both admissions and public relations raise the cost by not meeting timely production schedules. If copy is returned late or the design is not completed on time, additional charges are incurred by typesetters and printers who work overtime to meet the publication schedule. It is critically important to the admissions process that the Bulletin be available for distribution in September to high school seniors beginning their college search process.
Admissions and public relations are both cost centers. They have been arguing over whether the cost of the Bulletin should be in the admissions office budget or the public relations department budget.
Required:
Q1. Discuss the advantages and disadvantages of placing the budget for the Bulletin in the public relations versus the admissions office budget.
Q2. What are some other ways of handling the Bulletin’s Budget?
Q3. Based on your analysis, what recommendation would you make?