If we close the Nottingham division and only make up 60% of the revenue then we would decrease revenues by about £65,000 (see Scenario 1 in Appendices). We would also decrease costs by £41,000. The same scenario would decrease administrative expenses by £32,000 thereby…
If this is done then we would split the £32,000 administrative costs between the two. This scenario could also lead to more costs based on how much an employee costs in these areas compared with the costs in Nottingham. If the costs in Nottingham are lower than Leicester and Loughborough then the administrative costs would be much higher. Closing a division would mean firing employees and this might not make the company look too good.
If we close the division and outsource the raspberry jam then we would be paying £20.6 for each batch and our profit would be £11.4 per batch. If we still sold 6250 batches then our total profit would be £71,250. We would save the costs of fruit, sugar, labour, variable costs, and some overhead. This could equal up to £109,000 in savings and could lead to some significant profit. We could then use this profit for other things or even for expanding the other two products.
Advertising would create more customer awareness and possibly increase the demand for the product. The first thing we would need to consider would be how much we will be spending on this campaign. We do not want to overspend and receive nothing in return. If we have a decent budget for the advertising campaign we can then choose where best to spend our money. We would also need to decide how to advertise. We could use the papers, magazines, radio, or even television. Of course television is the most expensive of the choices but might be the one that reaches the most people. If we could put together a good campaign then we would need to make sure that we increase the demand by enough to cover the campaign. It would be very difficult to figure out how much our sales would increase and if we are unable to predict how much sales would increase then we would have a hard time predicting how much our distribution costs will change. Even if the campaign increased ...
Cite this document
(“Management Accounting Assignment Research Paper”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/395718-management-accounting-assignment
(Management Accounting Assignment Research Paper)
“Management Accounting Assignment Research Paper”, n.d. https://studentshare.net/miscellaneous/395718-management-accounting-assignment.
The paper tells that the primary role of management accounting should be to enable managers to maximize the net profit of the company. Management accounting provides data from a variety of sources which can be used in planning and control techniques to facilitate the decision making process. The management accountant can exercise his own discretion in preparing the reports.
Management accounting is the accounting intended for the internal stakeholders of an organization. It helps managers to take sound decisions for the betterment of an organization. Accounts department, production department, sales department and the business processes are some of the data sources for management accounting.
The company operates with a workforce of 164,000 employees in more than 70 manufacturing units established worldwide. It is worth mentioning in this regard that recent global economic turmoil has affected various manufacturing companies across the globe, including Ford.
can produce 2500 hard drives annually, its total profits could be; 2500 * $86.45 = $216,125 Total demand for Zeon hard drives – 3000 Malibu Inc. produces – 2500. Therefore, Malibu Systems Inc. will purchase 500 ZEON hard drives at $120.00 and incur selling and administrative expenses of $6.50 from Techno Products Inc.
The situation stems from a lack of focused effort on operating efficiency systems and an emphasis on outdated reporting techniques which negatively impact decision making. I believe we are poised to gain competitive advantage from our recent organizational restructuring and having worked closely with our units in Europe and in the UK.
d. The valuation technique(s) appropriate for the measurement, considering the availability of data with which to develop inputs that represent the assumptions that market participants would use in pricing the asset or liability and the level of the fair value
The Governmental Accounting Standards Board is a board that governs and monitors the progress of the standards and their drafting. It also resolves the issues that are relating to the accounting standards.
The Governmental Accounting Standards