BYP1-1 Tennis, Anyone? is a fairly large manufacturing company located in the southern United States. The company manufactures tennis rackets, tennis balls, tennis clothing, and tennis shoes, all bearing the company's distinctive logo, a large green question mark on a white flocked tennis ball. The company's sales have been increasing over the past 10 years.
The tennis racket division has recently implemented several advanced manufacturing techniques. Robot arms hold the tennis rackets in place while glue dries, and machine vision systems check for defects. The engineering and design team uses computerized drafting and testing of new products. The following managers work in the tennis racket division:
Wayne Gryer, Sales Manager supervises all sales representatives)
Tommye Stevens, technical specialist (supervises computer programmers)
Martie Lefever, cost accounting manager (supervises cost accountants)
Jack Marler, production supervisor (supervises all manufacturing employees)
Tina Roy, engineer (supervises all new-product design teams)
a. What are the primary information needs of each manager?
b. Which, if any, financial accounting report(s) is each likely to use?
c. Name one special-purpose management accounting report that could be
designed for each manager. Include the name of the report, the information
it would contain, and how frequently it should be issued.
Wayne Gryer, Sales Manager supervises all sales representatives:
She is the in charge of the sales department. She will require the information on the credit worthiness of the customer. She will require credit analysis of each customer, information on outstanding from each customer, information on what performance of each market segment (customerwise, region wise etc.) as compared to the last year. The information on the performance of each product. Which product is profitable! Comparison of profits from the last year.
She will use the Balance Sheet and the customer ledgers to know the Customer Outstanding and for the credit analysis. She will use the Income statement to know the sales performance from each segment.
A Management accounting report called Sales analysis report can be prepared. It will contain key customer information, sales to each customer, customer outstanding. Segment report: Customer ...
This solution explains the utility and content of management information reports.