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
Following are a couple of hints that may assist you in completing Phase 1 Task 2:
Logistics: You are to prepare a Word file to be placed in the courseroom Drop Box on or prior to the due date. The paper should be 2-3 pages double-spaced, in 11 or 12 point font. The paper will be evaluated on both content (managerial accounting concepts) and presentation (grammar, punctuation, readability, etc.).
Purpose: You are creating a brief paper to be delivered to the Vice President of Operations at an afternoon meeting. The paper should address the apparent need for useful information.
The task mentions the fact that the VP currently does not examine the corporate financial statements that the financial accountants carefully spend five days preparing. Your paper may want to address the fact that information that you could provide as a managerial accountant may be different and more helpful, and why.
The task also mentions that you are to propose two recommendations that will benefit the VP going forward. These recommendations may take the form of proposed helpful measurements, and identify how the proposed measurements would specifically assist in the VP's management of the company's operations. In other words, what information might managerial accountants gather and analyze that will help the VP perform her function.
It has been brought to notice that the information provided by the financial accounting department is not being used by the VP Operations and is not helping the company achieve its objective of increasing profitability, improving customer service and expanding the business. What I propose is that statements and information should be presented to the VP Operations from the management accounting point of view. It is expected that presenting information in this manner will help the VP increase profits, increase business and update its customer service.
There are several methods through which the managerial accounting approach can help the VP in achieving her objectives. For instance, the VP operations can find out how much money the company has at any point in time, from where the cash is expected to come in and from which source. It also discloses to the VP what we owe to others and when these debts have to be paid. The managerial accounting approach can also help the ...
This posting discusses managerial accounting concepts in the context of reducing costs and increasing efficiency.