You are the manager. What information should you request from themanagement accounting department? How will this information helpyou make a decision to solve this problem? If you use outsideresources, please cite them using APA format.
Managerial Accounting Scenario 1
The manager of a fabric store has noticed a considerableincrease in the amount of defective fabric being scrapped by hisstore. Clerks notice the defects (such as irregularities in theweave or color of fabric) when they cut yardage from bolts offabric. These defects usually affect only a small portion of thefabric on a bolt. Therefore, when a clerk discovers a defect, the“bad spot” is cut from the bolt. The clerk fills out a defect slip,which includes the amount of defective fabric (in yards), theretail price per yard, and the inventory control number. The defectslip is attached to the fabric and put in a “defects” bin in thestoreroom. Once a month, the assistant manager sends the defectslips to the accounting department and packages the bad fabric forsale as scrap material. The accounting department uses the defectslips to write off the defective inventory in the accountingrecords.
What information could the manager request from the managementaccounting department that might help in attacking the problem ofincreasing defects?
Managerial Accounting Scenario 2
The top management of a fast-food hamburger chain isconsidering installing point-of-sale machines that will allowcustomers to pay for food with an automated teller-machine card.Previously, the restaurant has accepted only cash.
What information could the management accounting departmentsupply to assist management with this decision?
Managerial Accounting Scenario 3
B Squared Inc. manufactures and sells awnings all over thesoutheastern United States. Each state has a sales representativewho is paid on commissions. Each salesperson is responsible forchecking the credit of customers as part of the sales process.Buddy has been the top salesman for the past 5 years in a row. Youhave been hired as the new sales manager and after meeting withyour sales representatives, there are some questions being raisedas to why Buddy is the top salesperson and the legitimacy of someof the sales being reported. What information would you requestfrom the accounting department to help confirm or negate theseaccusations?
Managerial Accounting Scenario 4
You are the newly hired production manager for the XYZ Companymanufacturing plant and have been ask by the VP of manufacturing toprovide a budget for the next quarter production for overhead cost.What information will you need from accounting to assist inbuilding this report?
Managerial Accounting Scenario 5
You are the newly hired production manager for the XYZ Companymanufacturing plant and have been ask by the VP of manufacturing toprovide a budget for the next quarter production for prime cost.What information will you need from accounting to assist inbuilding this report?
