Control Chip, Rolling Transmitter, Plastic Housing And Key Ring

955 words - 4 pages

Rodolfo deberia tomar en consideracion los reportes de desempeno y presupuestos ya que estos brindan informacion responsable de las eventualidades positivas y negativas en la empresa, desde inventarios hasta logros obtenidos en la produccion. Los reportes deben de estudiarse antes de tomar decisiones, y estos te brindaran el comportamiento de los clientes a traves de periodos determinados. De esta manera la empresa puede ser mas precisa en referencia a la demanda de sus productos y servicios. El presupuesto demuestra los recursos de la compania y donde estos deben ser invertidos para cumplir con la demanda. Si la demanda es cubierta satisfactoriamente, y sobra parte de el presupuesto ...view middle of the document...

This function would allow Guillermo to see how badly the company is doing and what needs to be addressed to retain profitability.
The attention directing function addresses which problem needs to be examined. This function involves reporting and interpreting information that facilitates managers focusing on imperfections, inefficiencies, operating problems and opportunities according to Horngren, et al (2008). This function usually involves reports that compare actual results to projected results, to ascertain why the projected results were not achieved. Guillermo would be able to determine if his labor costs were crippling the business or whether he could lower prices to increase sales, and still maintain profitability.
“The problem solving function of accounting often involves a special study to assess the possible sources of action and recommend the best course to follow” (Horngren, et al, 2008). Usually by analyzing revenues and costs, management is able to decide which course of action to take. The information or reports used for scorekeeping can also be used for attention directing as after examining the results the information then directs them to where attention should be directed.
Guillermo could use the factory’s reports to facilitate a more accurate decision and his cost-benefit analysis. He can analyze his cost which includes labor to decide if by reducing labor costs and producing high tech furniture his business would be more profitable. He would also be able to weigh the cost of investing in new equipment, and determine how quickly he would recoup his investment. This would be the problem solving aspect of accounting, which can also be used to evaluate the possible returns of becoming a distributor, patenting his special coating formula.
“The Institute of Management Accountants states that ethics deals with human conduct in relation to what is morally good and bad, right and wrong. It is the application of values to decision making. These values include honesty, fairness, responsibility, respect and compassion.”...

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