Guillermo Furniture Store Scenario Essay
Accounting is a daily function in many areas in our lives. Whether it is budgeting in our homes, or business, accounting services are useful and necessary. Guillermo Navallez has a very successful furniture business near his home in Sonora, Mexico. In the 1990’s Guillermo’s business was facing new competition. Rising costs and falling prices were causing Guillermo’s profit margin to shrink (University of Phoenix Guillermo Furniture Store Scenario, 2011). In this paper discussion topics will include how Guillermo can use budget and performance reports in his decision-making process, how ethics can play a role in the process, and relevant accounting information in the decision-making process.
Budget …show more content…
Relevant Accounting Information All accounting information is relevant for businesses in the decision-making process. Guillermo can definitely benefit from scorekeeping. “Scorekeeping is the accumulation and classification of data” (Horngren, Sundem, Stratton, Burgstahler, & Schatzberg, 2008). Government tax filings, yearly income statements, cash flow statements, and balance sheets are necessary components of the scorekeeping process. All measures will allow Guillermo to keep track of all necessary accounting business functions.
Although budget and