Leo's Four-Plex Theater

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Leo’s Four-Plex Theater

To address the issue of cash receipts, the owner would be well advised to create a control making the cashiers more responsible for any shortages by either having to pay for their shortfalls or linking their salary to the shortage that occurs. Furthermore, additional data should be printed on the tickets to address from which ticket booth each sale took places and have a designated schedule to cross reference which employee was responsible for selling the tickets associated with the shortfall.
As the refreshment stand suffered from a lack of cash collection for sales and failure to process sales for many items, the management should segregate the duties and have separate employees responsible for delivering the snacks (only after payment with a receipt) and entering sales/collecting cash. This would ensure that any one employee couldn’t give special treatment to their friends or preferred customers. Another option would be to hire employees from a different town where they would be less likely to provide free food to customers with which they are unfamiliar.
The ticket collectors should be instructed to focus on the existing control system regarding the ticket dating and coloring and be held accountable for any deviations between those who view the movies and the number of tickets received along with their respective ticket colors. Additionally, security cameras or other surveillance techniques should be implemented to reduce the number of non ticket bearing entrants into the theater.
Overall, the theater should create a code of conduct for the employees to adhere to so the standards of the company are visible and understood by all employees. Furthermore, the manager should take a greater level of responsibility for the underperformance and have their salary linked to both the effectiveness of the new control systems and adherence to…...

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Acc 803: Leo’s Four-Plex Theater Case

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Leos Four-Plex

...Delprov 1 1. Inledning 1.1 Problem Vid en genomgång av caset Leo’s Four-Plex Theaters räkenskaper fann professorn att det fanns vissa problem inom verksamheten. Professorn noterade att det fanns en differens mellan försäljningsintäkterna och värdet av de sålda biljetterna. Skillnaden var de flesta gånger liten, men denna gång saknade en kassör 100$ i försäljningsintäkter, vilket måste tolkas som mer än en differens som uppstår på grund av svinn. Ett annat problem var att kassörerna som sålde förfriskningar var unga, och kände många av kunderna eftersom de var jämnåriga. Detta gjorde att det ibland hände att de inte tog betalt, eller inte slog in köpet på kassaapparaten. Det hände även att kunder med utgångna biljetter släpptes in på föreställningarna, vilket troligen skedde på grund av att biljettkontrollanten kände kunden. Professorn noterade även att ett stort antal gratisbiljetter utfärdats av en viss kassör vid namn Bill Reily. 1.2 Bakomliggande orsaker till problemen Vi identifierade bakomliggande orsaker till problemen som att det inte fanns någon tydlig företagskultur. Dessutom fanns det för lite styrning i verksamheten, vilket gjorde det oklart för personalen vad som förväntades av dem. Detta i sin tur resulterade i att medarbetarna saknade motivation att utföra sitt arbete på ett tillfredsställande sätt. Vi drog slutsatsen att det huvudsakliga styrproblemet var bristen på vägledning, de anställda verkar inte förstå vad som förväntas av dem. 2. Styrformer 2...

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Leos Four Plex Theater

...Marshall School of Business University of Southern California Leo’s Four-Plex Theater Teaching Note Purpose of Case This case is intended as an in-class, “warm-up” case. It is particularly useful on the first day of class where students cannot be made to prepare a longer case prior to class. The case motivates the students (1) to think about the meaning of good control; (2) to consider a number of different forms of controls; (3) to think about the design vs. the implementation of the various forms of controls; and (4) to consider costs in their recommendations. Questions 1. Where is the theater’s control system lacking? Are the controls themselves weak or incomplete, or are the theatre’s problems caused primarily because of lack of discipline in using the existing controls? 2. What control improvements would you suggest for Leo’s Four-Plex? Analysis I recommend starting the discussion by asking students to list the controls discussed in the case and the purpose of each. That will lead to the preparation of the chart shown in Exhibit TN-1 below. Then the discussion can move into the analysis of the problems and possible solutions: 1. The cashier’s collect less cash than the value of the tickets sold (or missing). The common solution is to make the cashier’s pay for the shortage, or at least have shortages comprise a significant portion of the employees’ performance evaluation. 2. Some refreshment stand sales seem to be lost because the attendants do not collect......

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Acc 803: Leo’s Four-Plex Theater Case

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Leo's Theater

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How Could Leo's Four-Plex Theater Avoid Control Problems?

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Case Study on Leo's Four Plex

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