Question: A major global disaster (in this case an oil spill) has caused environmental damage and has affected global transportation as well. As the controller of your chosen company, you are tasked with providing a financial report to the board of directors addressing how this event will affect your company.
Focus on how the disaster will affect your company, specifically related to increases in costs of operations and possible rising prices from vendors for shipping and products. How will this affect your company's bottom line? Could there be an impact to cost of goods sold? What about increases in shipping? Will you need to raise prices? Could this cause inventory shortages? How will this affect sales and your customer base? When considering strategies, what can be done to offset these impacts? How could you avoid the impact of rising transportation costs in products and shipping, along with possible delays in merchandise shipments due to this disaster?