Week 6 Learning Team B: Guillermo Furnature Store Paper

1614 words - 7 pages

University of Phoenix

ACC 561 Accounting

Guillermo Navailez had many important decisions to make and a vast amount of information to process before moving forward after the events of the 1990's. The first was to analyze the marketplace and the second was to analyze the Guillermo Furniture Company. After finding his place in the marketplace, Guillermo then needed to make decisions base on data on whether is it was wise to continue. Computing measures of profitability and a break even analysis will determine weather or not this will be a feasible option. If the determination is to continuing operating, the control system will allow Guillermo Furniture to stay on track.

Influence ...view middle of the document...

If Guillermo stays with the relatively labor intensive than labor hours may be a good cost driver. If the company makes the large initial investment in high tech computer controlled laser then fixed costs will be much higher and machine hours or set up times may be a relevant cost driver. Costs behaviors will also vary based on the type of production, whether being mid grade or high end. Guillermo needs to have a good understanding of cost behaviors to make decisions that will be the most profitable. This is especially important because of the current need to potentially make some major changes in the company’s operations.

Choice of a Control system to achieve organizational goals

A management control system is a “logical integration of techniques for gathering and using information to make planning and control decisions, for motivating employee behavior, and for evaluating performance” (Horngren, Sundem, & Stratton, 2008, p. 386). The first component of a management control system is the organization goals. In the case of Guillermo furniture, the company has no intention of merging with another company to become more competitive like some of Guillermo’s competitors. To remain a strong, independent, profitable company Guillermo must a control system in place that ensures the entire organization is working toward unified goals. When designing a control system to meet these needs Guillermo must identify responsibility centers, develop performance measure, establish a monitoring and reporting structure, weigh costs and benefits, and provide motivation to achieve goal congruence and managerial effort (Horngren, Sundem, & Stratton, 2008).

A management control system with the above components will help the company stay on track to achieve organizational goals. As responsibility centers are set up a cost center will be especially important. A cost center will help management to understand cost behaviors in different departments, which will help the company to better control costs. Developing performance measures that focus on financial and nonfinancial are needed to have standards set appropriately. These measures are also needed to ensure employees are rewarded and evaluated properly. A control system will also monitor and report results, which is necessary to ensure goals are being hit, and if not adjustments can be made. Monitoring and reporting results leads us to weighing costs and benefits. The information gathered from monitoring and reporting need to be as accurate as possible so when used to weigh costs and benefits the best decisions possible can be made. Once decisions are made the control system must still be able to properly motivate employees and management through rewards. Rewards keep management and employees motivated to continually work toward achieving the organizations goals. Having a management controls system in place will help Guillermo achieve the organizations goals.

In an effort to make his product better,...

Other Papers Like Week 6 Learning Team B: Guillermo Furnature Store Paper

Week Two Learning Team Assigm, Emt

1121 words - 5 pages Week 2 Exercise One - Geometry Complete the following in your team meeting and be prepared to report your results and discussions to the class: Complete parts 1–5 from the Group Activity at the end of section 2.3 in Ch. 2 of the text. Discuss any concept that a team member is having a difficult time understanding. Examine the importance and applicability of this week’s concepts to each team member and to society in general. Plan and work

Dbm/380 Learning Team Week Final Project

2319 words - 10 pages Learning Team Week Final Project DBM/380 Learning Team Week Final Project The Huffman Trucking Company started in Cleveland, Ohio in 1936. The company is privately owned, and began as a single tractor-trailer company. This company is growing is size and acquiring rapid business growth. At present time, the company owns 800 road tractors, 2,100 45' trailers, and 260 “roll A on/roll-off" units. The Huffman Trucking provides logistics services

Qnt 561 Week 6 Weekly Learning Assessments - Assignment

317 words - 2 pages QNT 561 Week 6 Weekly Learning Assessments Assignments Chapter 18 Exercise 2 Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2001 to 2013. Compute a five-year weighted moving average using weights of 0.15, 0.1, 0.2, 0.17, and 0.38, respectively. Describe the trend in yield. (Round your answers to 3 decimal places.) 2001 8.41 2002 8.14 2003 7.77 2004 6.59

Week 4 Learning Team Reflection: Cost-Volume-Profit

1095 words - 5 pages Week 4 Learning Team Reflection Bassam Abukhodair, Michael Dobs, Dhavanika Patel, Jeffrey Smith University of Phoenix ACC/561 - Professor Cathleen Davis Due: October 21, 2013 Week 4 Learning Team Reflection Whereas Wiley eloquently states that Cost-Volume-Profit (CVP) is the examination of numbers and values or more specifically the study of the effects of changes in costs and volume on a company's profits, it is at its most basic level

Acc 300 Week 5 Team Assignment Problem Set Pe-2, E7-5, E7-6, E7-9

2283 words - 10 pages Team A Week 5 Problems PE-2, page 862 In January 2012, the administration of Sarah Company determined that it has enough money to buy transient investments in debt and stock securities. In the course of the year, these are the transactions that happened. Feb. 1 Purchased 1,200 shares of NJF common stock for $50,600 plus brokerage fees of $1,000. Mar. 1 Purchased 500 shares of SEK common stock for $18,000 plus brokerage fees

DBM380/Learning Team week 4

866 words - 4 pages  Huffman’s Fleet Truck Maintenance Database TEAM C Diosa Allen, Tim Breen, Danny Finein, Klay Kohl, Justin Madison DBM/380 November 2, 2014 Mario Missakian Principles of Normalization In a time of budgets and demands for accountability, designing a normalized database structure meant to last, was the first step when building Huffman’s Fleet Truck Maintenance

Learning Team Week 3 Assignment

765 words - 4 pages 1. Clarify the assignment For Ricky to delegate the assignment to Bill, he must first understand the project himself inside and out. The more clarity he can give to Bill in how to execute the project, the easier it will be to hand it off and not worry about how it is completed. Ricky must know the exact expectations and specific requirements for writing the new procedures manual that will outline the steps that are to be followed in

Guillermo Furniture Store Concepts Paper

889 words - 4 pages RUNNING HEADER: Guillermo Furniture Store Concepts Paper Guillermo Furniture Store Concepts Paper Deunkai Soukkaseum University of Phoenix FIN/GM571 September 05, 2012 Dr. Yvan Nezerwe Guillermo’s Furniture Store Scenario The location of the scenario is Sonora, a beautiful city in

Fin370 Week 4 Learning Team Assignment

542 words - 3 pages unit $300) $18,000,000 x 34%= $6,120,000 Working capital requirement $100,000 Total Initial Outlay $14,220,000 4. Cash flow diagram Positive cash flows $3,956,000 $8,416,000 $10,900,000 $8,548,000 $5,980,000 Negative cash flows ($8,100,000) 5. NPV = 45,900,000(Cash inflows from investment) – 29,168,000(cash outflows or costs of investment)= $16,731,096 6. IRR=77% 7. The project should be

Eco 372 Week 5 Learning Team Assignment

1659 words - 7 pages ECO/372 Effects of the United States' Deficit, Surplus, and Debt The United States goes through a large amount of changes every day and there are certain things that affect all Americans. When the United States goes through deficit at times, surplus, and debit and when these things happen everything is affected. Students, business owners, and even car manufacturers are affected. These three types of budget issues happen to the United States and

Week Three Team Paper

1942 words - 8 pages Functional Area Interrelationships David Echavarria, Jonathan Ness, Roseline Prasad BUS/475 6/2/2014 Tosh Stuart Functional Area Interrelationships The team has chosen to research Riordan Manufacturing. In the paper the team will discuss the primary reasons for the organizations existence by analyzing the mission, vision, values, and goals of the company. The team will analyze the reason for the organization's structure and the key

Related Essays

Guillermo Furniture Store Week 6 Essay

2330 words - 10 pages Guillermo Furniture Store Learning Team B Jamal Block Jeanette Chandler Ted Harrison Stormy Mckay Carla Pigman Erik Rose Malissa Wood FIN 571 January 16, 2012 Kimberly McCarrolle Guillermo Furniture Store The Guillermo Furniture Store scenario provides detail of the operations of Guillermo Furniture and changes in the furniture industry. The furniture industry has seen an increase in foreign competition

Week 1 Guillermo Furniture Store Essay

825 words - 4 pages Introduction Guillermo Navallez is an entrepreneur in the furniture market within a University of Phoenix business scenario. He faces a shrinking profit margin due to other companies entering the marketplace and a changing local demographic. These two elements have resulted in lower sale prices and higher labor costs. This paper will explore the application of the following financial principle genres to his situation; competition in an

Learning Team Reflection Week Five Essay

949 words - 4 pages Learning Team Reflection MGT/521 October 14, 2013 Dr. Mary Weber Learning Team Reflection As manager of a call center it is very important to figure out ways to manage the effectiveness and efficiency of each employee. There are a certain amount of phone calls that should be received during a work shift. The customers must be pleased with the service that they are receiving from the call center to keep business successful. The steps

Learning Team Refection Week 2 Essay

1208 words - 5 pages Learning Team Reflection In this week assignment Team A will discuss how we plan to help Clapton Commercial Construction expand their operation from a single location to multiple. Clapton Commercial Construction will expand to Arizona while currently operating solely in Detroit, MI. Employing 650 employees the Clapton Commercial Construction falls into the medium size business with a plan to add 20 percent workforce in the new state. Our team