Question 1
You have just attended a conference on the valuation of assets. The company you work for is especially concerned with the balance sheet presentation of Property, Plant, and Equipment. You see this as an opportunity to present these new ideas to your boss. What would be the key points you would address with your boss and why?
Respond to this... I would make sure the right assets are classified as property, plant and equipment.
Characteristics of property, plant and equipment are: (Kieso, Weygandt, & Warfield, 2013, p. 537)
1. "Only assets used in normal business operations"
2. "They are long-term in nature and usually depreciated"
3. "They possess physical substance"
I would address the proper accounting for the acquisition, use and disposition is accurate.
"The level of capital expenditures, depreciation expense, cash flow from operations, and net income all play a role in assessing a company's ability to generate future cash flows" (Kieso, Weygandt, & Warfield, 2013, p. 537).
Kieso, D. E., Weygandt, J. j., & Warfield, T. D. (2013). Intermediate Accounting 2014 FASB Update (15th ed.). (M. McDonald, B. Kamins, T. A. Tatro, M. Thompson, Y. Mermel, V. Vargas, & M. A. Price, Eds.) Hoboken, NJ, United States: John Wiley & Sons Inc. Retrieved from https://bookshelf.vitalsource.com/#/books/9781118722671/cfi/0
Question 2
As this module has pointed out, there are five main steps in the decision making process. Head over to Guidelines for Cost Accounting and take some time to refresh your memory of them before you complete the discussion.
How would you use this five-step process in day-to-day cost accounting and management accounting practices to better develop a set of standards and guidance for use in a business?
Respond to this...I think that the five step process for decision making can be helpful in many different areas both inside and outside of the work place. I think that this method is helpful when it comes to cost accounting and management because it helps outline the areas that are causing the company issues as well as what information is needed to help make informed decisions about the actions the company needs to make in order to get back on track and make the problem better. Overall I think that this process allows everyone to put in their thoughts on the matter and what they think needs to be done in order to resolve the problem. I think that this method of decision making encourages employees to work together to make informed decisions that will help the company in the long run. Overall I think that this method will help things run smoother if it is followed.
Question 3
Imagine you work for a small used-bookstore. How could information systems be used to support order fulfillment? Within this system what is the most important information to capture?
Now consider a larger organization such as a computer repair shop. What are some of the benefits of utilizing a system like this in a medium-sized business? Are there different considerations that need addressing?
Respond to this... My power is out, and I am doing this on a shared work computer. I couldn't do anything until I got into work today. I'm sorry it is late.
It will save costs because it will reduce the need for extra employees because orders will be automatically recorded and processed into Fulfillment System
It will also save time because there will be no need for manual entries from Ordering to fulfillment Processing. Additionally less manual work will mean less time spent on error correction. It would improve quality as all orders will be automatically registered for fulfillment so there will be no missing orders or same item will not be shipped twice.
I think this works for both companies as it would help out in the same way.