The company has been expanding at a quick rate and the company has also been considering opening of around thirty to thirty five new stores across the country. This paper aims at discussing the two relevant…
Here the two main questions and pieces of information that need to be considered are a) the location of the stores and the relative distance from the competitors and b) the Sales potential for the stores and the estimated revenue that the company might expect from the stores. Both these have a major impact on the overall profitability of the company.
The irrelevant information for the company includes a) the sales for the US branch of the company and b) the sales forecast for Wal Mart international. Both these pieces of information do not have an impact on the company or the profitability of the company and hence can be ignored while the decision making process.
Using the contribution margin for each of the stores will permit Wal Mart to accurately identify the most profitable locations. The first step to be adopted here will be to finalise the major stores, which are expected to grow and develop to achieve high market shares, following which it is essential for the company to detail the additional costs that relate to the smaller stores. Also the marginal fixed overheads can also be used to do so. The use of marginal costs of the additional stores can be obtained using the above information.
Using the contribution margin method proves to be very effective and impactful on the businesses as the full cost and tradition methods of costing are not valid in the present times and hence the demand for the products is high as well. Also, this will provide information to the management which will help make more informed decisions for the additional store. Also this will allow gain a clear picture of the benefits that the additional store can provide and will also help in better estimation of the profitability of the stores as well. However, it is essential to keep in mind that although the contribution margin analysis is a simple process, the efforts to involved in finding the information for the analysis if quite tedious. Also the costs involved for the ...
Cite this document
(“Relevant Information for Decision Making session long project 3 Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/406647-relevant-information-for-decision-making-session-long-project-3-walmart-accounting
(Relevant Information for Decision Making Session Long Project 3 Essay)
“Relevant Information for Decision Making Session Long Project 3 Essay”, n.d. https://studentshare.net/miscellaneous/406647-relevant-information-for-decision-making-session-long-project-3-walmart-accounting.
The company has a number of lawsuits against them in court and most of these are for the discrimination against employees and also incorrect time cutting from the charts of the employees (Miller). The employees of the company are mostly focused and committed and the quality of the employees is also high.
The company focuses a great deal on the training and development of the employees and ensures that this is an ongoing part of the life of the employees. The performance of the employees, known as ‘associates’ at WalMart, is given prime importance, and this is one of the largest strengths of WalMart’s performance management system.
Accounting Information in Decision Making Outline i. Introduction ii. Models of decision-making and their limitations (constraints) a. Individual: Subjective Expected Utility b. Group: Theory of the Firm iii. Role of managerial accounting in providing information to aid individual and group decision-making a.
Relevant information for decision making refers to information to be used at some future time and do have some difference for each option available to the decision maker, for instance in relation to relevant costs in replacing equipment we will include the cost of purchasing a new equipment, installation cost, operation cost, and the disposal cost of the current equipment, the cost of repair of the old machine (Hansen & Mowen, 2000).
Although the court which was hearing the case cleared “The Coca-Cola Company” of any wrong doing but this issue had some ethical implications to it. These implications are going to be discussed in the next few paragraphs.
Although this should be considered but the appropriation should not be written down for the analysis as it would give incorrect results.
b) In the case where, ‘the $800,000 of foreign pre-sales because they were "probable" not actual’, there should
According to the report the human resources team is very effective in choosing the right people for the job, however in terms of the management of the employees there is a clear lack on the part of the team. The HR teams are meant to focus on the needs of the employees and to provide the employees with the necessities to keep them motivated.
the firm stated that it is specifically interested in presenting a more “green” and sustainable image to the customer while being mindful of the environmental impact that product packaging has once utilized and discarded. The firm further noted that although redesigning the