Week 3 LT Assignments from the Readings
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ACC/497
July 9, 2012
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Managerial Analysis
BYP1-2 Love All is a fairly large manufacturing company located in the southern United States. The
company manufactures tennis rackets, tennis balls, tennis clothing, and tennis shoes, all bearing the
company’s distinctive logo, a large green question mark on a white flocked tennis ball. The company’s
sales have been increasing over the past 10 years.
The tennis racket division has recently implemented several advanced manufacturing
techniques. Robot arms hold the tennis rackets in place while glue dries, and machine vision systems
check for defects. The engineering and design team uses computerized drafting and testing of new
products. The following managers work in the tennis racket division.
Instructions
(a) What are the primary information needs of each manager?
Andre Agassi, Sales Manager-- Balanced Scorecard in order to measure performance in lines
with company objectives and to evaluate the company operations.
Serena Williams, technical specialist-- An ERP system in order to have all the information
presented in a comprehensive, centralized source to manage all the major business processes.
Pete Sampras, cost accounting manager – A costs of goods manufactured schedule which
includes the details of costs in order to determine the cost of goods manufactured, cost of the work-inprocess, and total manufacturing costs.
Andy Roddick, production supervisor-- needs information on the direct and indirect labor costs,
all staff positions, and a method of allocating overhead by product (ABC)
Venus Williams, engineer—Needs information regarding the cost of goods manufactured, the
manufacturing overhead, product costs, and marketing research in order to plan for consumer demand.
b) Which, if any, financial accounting report(s) is each likely to use?
Sales manager (supervises all sales representatives)
Managerial Accounting reports:
Cost reports
Budgets
Performance reports
Labor reports
Analytical reports
Financial Accounting reports:
Balance sheet
Income statement
Statement of cash flows
Technical specialist (supervises computer programmers)
Managerial Accounting reports:
Budgets
Labor reports
Cost accounting manager (supervises cost accountants)
Managerial Accounting reports:
Cost reports
Budgets
Performance reports
Labor reports
Variance reports
Analytical reports
Financial Accounting reports:
Balance sheet
Income statement
Statement of cash flows
Production supervisor (supervises all manufacturing employees)
Managerial Accounting reports:
Cost reports
Budgets
Performance reports
Labor reports
Variance reports
Analytical Reports
Financial Accounting reports:
Balance sheet
Income statement
Statement of cash flows
Engineer (supervises all new-product design teams)
Managerial Accounting reports:
Cost reports
Budgets
Labor reports
Variance reports
Financial Accounting reports:
Income statement
Statement of cash flows
(c) Name one special-purpose management accounting report that could be designed for each
manager. Include the name of the report, the information it would contain, and how frequently it
should be issued.
Andre Agassi, Sales Manager (supervises all sales representatives)
Total sales schedule-- includes all sales representatives and their correlating sales for each
period. Issued at weekly intervals.
Serena Williams, technical specialist (supervises computer programmers).
Indirect Labor report-- includes the efforts of the technical specialists who indirectly influence
the production process. Issued bi-monthly.
Pete Sampras, cost accounting manager (supervises cost accountants).
Cost of goods manufactured schedule-- This reports all cost elements used in calculating
the cost of the goods being produced. This should be issued quarterly if not more often when
changing suppliers or production line equipment.
Andy Roddick, production supervisor (supervises all manufacturing employees).
Balanced Scorecard report to evaluate all aspects of the production operations. Issued anytime
the company wishes to see an increase on its return on assets or quarterly whichever is more
frequent.
Venus Williams, engineer (supervises all new-product design teams).
Product Division Schedule-- provides a cost analysis comparison of current designs with new
products. Issued when a new project is proposed.