Whale Printing Case Study
ACCOUNTING 5250
Managerial Accounting Case Study- Whale Printing Company
This case study is located in the Assignment Section of your Blackboard. You are to analyze:
Question 1: - What are the key issues?
Answer 1: - An organization should include the 5 M’s of management in order to create value, run the business successfully and efficiently. These 5 M’s include: Money, Materials, Manpower, Machinery, and Methodology. The requirements for production usually represented as capital, labour, and land. Capital covers all man-made aids to future production; fixed capital stays put, and includes the physical plant, buildings, tools and machinery, while circulating capital includes raw materials and components. Labour includes all human resources. It may be unskilled, semi-skilled, or skilled, and local labour markets vary in the size and nature of the pool of labour.
Therefore, Whale Printing Company included all the 5 M’s and was a successful, profitable venture. Victor Hussey, the President of the company was offered a job by Salter Associates to print 10,000 copies of an advertising brochure and offered him $700. Mr.Hussey was in a dilemma whether to accept the offer or not as the major issue in the case is Manpower. The job involved skilled people whereas the company just had 3 people in its lithography department, in which copy was converted to plates for the press. Also, the company had two big jobs scheduled for the week for regular customers and taking up Salter’s offer would put added pressure and would make it difficult for the people in the lithography department to handle everything together as their capability was limited. Although, they had capacity to handle Salter’s job, but problems with the two big jobs could change that.
The other two departments (cut and bind, and package and ship) probably had capacity as it was easier to run them overtime is necessary. Printing 10,000 copies of the advertising brochure required the right people for the
Managerial Accounting Case Study- Whale Printing Company
This case study is located in the Assignment Section of your Blackboard. You are to analyze:
Question 1: - What are the key issues?
Answer 1: - An organization should include the 5 M’s of management in order to create value, run the business successfully and efficiently. These 5 M’s include: Money, Materials, Manpower, Machinery, and Methodology. The requirements for production usually represented as capital, labour, and land. Capital covers all man-made aids to future production; fixed capital stays put, and includes the physical plant, buildings, tools and machinery, while circulating capital includes raw materials and components. Labour includes all human resources. It may be unskilled, semi-skilled, or skilled, and local labour markets vary in the size and nature of the pool of labour.
Therefore, Whale Printing Company included all the 5 M’s and was a successful, profitable venture. Victor Hussey, the President of the company was offered a job by Salter Associates to print 10,000 copies of an advertising brochure and offered him $700. Mr.Hussey was in a dilemma whether to accept the offer or not as the major issue in the case is Manpower. The job involved skilled people whereas the company just had 3 people in its lithography department, in which copy was converted to plates for the press. Also, the company had two big jobs scheduled for the week for regular customers and taking up Salter’s offer would put added pressure and would make it difficult for the people in the lithography department to handle everything together as their capability was limited. Although, they had capacity to handle Salter’s job, but problems with the two big jobs could change that.
The other two departments (cut and bind, and package and ship) probably had capacity as it was easier to run them overtime is necessary. Printing 10,000 copies of the advertising brochure required the right people for the