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Official Communications, Modalities and Decision Making: Control Systems for Andrew; Capital Budgeting for Brenda.

For this problem imagine you are an accountant and come into work to find several urgent emails waiting for you to respond.

The first email is from Andrew, the president of a new division that has been started in the south-east to manufacture customized electrical components. After the first two months he feels that his sales cost are out of control.

1. Respond to Andrew with a prescription for control systems that he can put into place to forecast, monitor and control sales expenses.

The second email is from Brenda the head of production. Brenda wants to purchase an offset press to print manuals instead of purchasing them from local print shops. In the past the life of a product was several years and changes were minor. Today the product life cycle is less than 6 months and manuals are developed concurrent to the productions startup.

2. What information will Brenda need to get the equipment approved in the capital budget?

Prepare responses for the emails from Andrew and Brenda.

All references must be cited.

Accountant plays a pivotal role in the running of any organization as he controls the funds required for day to day running of the business to budgeting, estimating and forecasting profit and expenditure, generate funds for investment for expansion or diversion purposes. Every head of the department and higher management depends upon him about the availability of funds, trends in likely anticipated profit, provision of taxes, filing of various returns to the government well in time. Despite his challenging role he has to maintain his cool and help the employees at all levels to solve their financial problems. He must be able to convincingly attend to the concerns of different heads of the departments and answer to their memos/letters at the earliest possible.

Solution Summary

This solution provides memos for both Andrew and Brenda which include issue-identification and step-by-step instructions for implementing a control system and getting equipment approved in the capital budget. This solution is a total of 700 words.