Accounting (Managerial) 530 Portfolio Case Study Essay

presuppose you be applying to become a trainee in a forethought consulting caller-up, Solutions Inc., which claims to drop by the wayside innovative solutions. They atomic number 18 looking for innovative employees who engage with their work. The selection surgery will be rigorous. You know you will be asked to submit reports establish on questions regarding your knowledge of oversight accounting practice and strategic management accounting. To provide a context for the reports, you have been provided with a scenario in the spirt a case study on which the questions are pesd. To answer the questions you are going to have to do some research in the library. braggy you the questions is a method to test your information literacy skills. Submitting your answers in the form of reports is a way of testing your aptitude as an analyst and communicator.Scenario on which to base your report ingresssAssume you have been appointed as a consulting counselling Accountant to an organiz ation with rapidly growing sales and expanding customer bankers acceptance in the pasture wear habiliment target market 18-30 years. The clothing is sold under an increasingly recognized brand name worldwide. gross revenue are make online -both internationally and locally, as well as by means of franchised outlets. The accounting organization has not kept pace with the growth and complexness of the confederacy. It is even more than critical for the play along to crawfish out control of its pay in the current slow recovery of the U.S. and European markets.You have been give a list of issues listed below by the management of the company. In analysing the issues, the management of the company is concerned that the accounting system does not provide wonky hail control, measure quality control, and does not provide a good basis for the budgeting system. No embody analysis has been done within the company to date.The management of the company wishes you to investigate the fo llowing issues given that management wishes to moderate growth in this turbulent environment identify One ( knows 1 to 3)Issue 1It is difficult to see the relationship between the express cost of mathematical product and the selling price for the various lines of clothing ranging from frank to complex clothing. According to the management We dont need a product cost system. About half of our product range is made in China and shipped to online customers from there so we avoid GST. The remainder of our production consists of a growing range of high value, small batches of swim wear, surf wear and wet suits. We apply a just-in-time approach so that our inventories are minimal. We have little influence over product price as price competition is on the increase and brand loyalty isnt sufficiently strong to justify uncompetitive prices. Anyway, our accountant is already further too busy to bother with a product costing system.In your compliance to the management, discuss the current no costing policy, and ease up an argument in support of undertaking an appropriate product costing system.Issue 2The managers of the company have been convinced that they need a better costing system for their local production. They have heard most Activity Based Costing and they believe that it will improve the true statement of the costing of their products. In your submission to the management, provide the conditions under which the use of performance based costing may be justified, and whether you believe there is a case to implement Activity Based Costing in this organization.Issue 3The management of the company has concerns that they do not know large about the relationship between cost and profit. Include in your submission to themanagement, a discussion on the difficulties they may smell in concourse the information they might need to carry out an analysis of cost behavior, and the development of a cost function in this company. A sketch comment on the benefits the company can derive from a plenteous understanding of cost behavior is also desirable. Report Two (Issues 4 to 6)Issue 4The management wants to be able to predict the strength on profits resulting from changes in volume, costs and prices. Prepare a submission for management on how this may be done, and the difficulties that they are likely to face in undertaking this sort of analysis.Issue 5Previously the company did not use budgets because the owners were the managers of the business and close to activities being managed and did not tonus the need for budgets. As the company has grown, and the operations have become more diverse, professional managers have been recruited. Include in your submission an argument for budgeting, indicating the benefits of budgeting, and the factors to take into consideration when faced with uncertainty regarding sales growth.Issue 6The company has a need to make choices sometimes whether to make or secure certain of the products carrying their bran d. On other occasions they are also indispensable to make decisions on special prices when a potential retailer makes an strain to buy goods from them at a price lower than their normal price. The management currently make their decisions in these matters based on the average cost of goods sold in the previous accounting period. Discuss the concept of pertinent cost and benefits, and the type of accounting and non-accounting information they would need for such decisions.operating instructions for the portfolio submissions1. Assume that the management of the company has little technical knowledge in management accounting. You would need to define terms and explain concepts to the management before linking those terms and concepts to your report.2. You must submit your responses in the form of two break dance reports as followsa. Report 1 covering Issues 1 to 3b. Report 2 covering Issues 4 to 6You should read the Guidelines available on blackboard prior to writing up your report . There are unbending requirements as regards formatting and layout.