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    role of performance measures

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    The Vice President of Operations would like to increase profitability, improve customer service, and expand the business. Even though the external accounting department spends 5 days preparing each quarter's financial statements and disclosures, she does not examine those financial statements issued to the company shareholders.

    You are to attend an afternoon meeting to discuss why this is the case. You have been assigned the task of examining the pertinent information and proposing two recommendations for the Vice President. These recommendations are to take effect at the end of the quarter.

    Create a word document presentation outlining your recommendations. Include all your supporting material.

    Objective: Discuss the role of performance measures in an organization.
    Describe the functions of managerial accounting and the external uses of accounting.

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    Solution Preview

    The response addresses the queries posted in 613 words with references.
    //Before writing about the two recommendations for the Vice President, it is essential to know about the pertinent information. One should know about this information must be examined by the Vice President of the Company, which further will assist in analyzing the recommendations.//

    Examining pertinent information

    Issuing the financial statements to the shareholders, without examining the key information creates the various critical problems in front of the company and it also spoils the company's image in the eyes of its shareholders because they interpret that the financial information issued to the company's shareholders does not reflect the true picture of the company and also not in the precise manner. Properly examined financial statements not only reflects the actual position of the company in the market place, but also helps in building good image in the eyes of the prospecting investors.

    The following are the pertinent information that must be examined by the vice president in order to clear the queries arose in the mind of the shareholders. These include net revenues growth, profitability, liquidity position, operational efficiency, trend analysis, return on ...

    Solution Summary

    The response addresses the queries posted in 613 words with references.