Q1. The current control systems for T&J’s are as follows:
For purchasing department
There is poor control over the purchasing department. The plant manager had no discretion with regards to the procument of green coffee beans. The purchasing group was largely autonomous. It kept all of its own records and handled all of the financial transactions relating to purchasing, sales to outsiders and transfer. The purchasing department is involved in sales as well; the sales department should be handling the sales. The purchasing department costs were charged to the central office whereas the revenue is stated as revenue of purchasing department, making it difficult to determine the actual profit of purchasing department. Also the case tells there …show more content…
Currently 3 to 12 months stock is purchased.
Marketing – the responsibility needs to be handled by someone and not assumed. There should be sufficient marketing and promotion to increase sales to avoid spot sales that may be additional cost to the company.
From Article
Q3 In the article above, Strategic management accounting practice was appraised to the extent to which a management accounting practice embodies strategic orientation rather than to the proximity of the accounting practice to the needs of those mangers charged with managing corporate strategy
12 SMA practices identified in the article are as follows:
Attribute costing- the costing of specific product attributes that appeal to customers.
Brand value budgeting- the use of brand value as a basis for managerial decisions on allocation of resources to support/ enhance a brand position, thus placing attention on management dialogue on brand issues.
Brand value monitoring- the financial valuation of a brand through the assessment of brand strength factors such as: leadership; stability; market; support and protection combined with historical brand
For purchasing department
There is poor control over the purchasing department. The plant manager had no discretion with regards to the procument of green coffee beans. The purchasing group was largely autonomous. It kept all of its own records and handled all of the financial transactions relating to purchasing, sales to outsiders and transfer. The purchasing department is involved in sales as well; the sales department should be handling the sales. The purchasing department costs were charged to the central office whereas the revenue is stated as revenue of purchasing department, making it difficult to determine the actual profit of purchasing department. Also the case tells there …show more content…
Currently 3 to 12 months stock is purchased.
Marketing – the responsibility needs to be handled by someone and not assumed. There should be sufficient marketing and promotion to increase sales to avoid spot sales that may be additional cost to the company.
From Article
Q3 In the article above, Strategic management accounting practice was appraised to the extent to which a management accounting practice embodies strategic orientation rather than to the proximity of the accounting practice to the needs of those mangers charged with managing corporate strategy
12 SMA practices identified in the article are as follows:
Attribute costing- the costing of specific product attributes that appeal to customers.
Brand value budgeting- the use of brand value as a basis for managerial decisions on allocation of resources to support/ enhance a brand position, thus placing attention on management dialogue on brand issues.
Brand value monitoring- the financial valuation of a brand through the assessment of brand strength factors such as: leadership; stability; market; support and protection combined with historical brand