Binson's Country Markets
Binson’s Country Markets
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Memo
To: Management Team & Employees
From: Ownership
Date: July 11, 2012
Subject: Management Accounting System, General Management and Loading Docks
Managers & Employees,
Attached is the report that we have prepared, outlining future strategies Binson’s Country Markets must adopt moving forward. The report gives a description of the situation an analysis, followed by a final recommendation.
Please let us know should you have any questions or require further clarifications on this report.
Yours truly,
Ownership
INTRODUCTION AND PROBLEM STATEMENT
The purpose of this report is to address three main problems that we have identified. First, we will be analyzing the requirement for establishing new management accounting system to ensure profitability of departments and store with return on sales and return on investment. Secondly, we will consider hiring experienced management to assist in adequate staffing during busy and non-busy times during operating hours. Finally, we will analyze the investment on the new loading docks based on net present value methodology and we will provide our recommendation as to whether or not to construct new loading docks.
ISSUES
We have reviewed the operations at Binson’s Country Markets and identified the following issues: 1. A poor management accounting system disabling us from ensuring the profitability of departments and stores with return on sales and return on investment; 2. Inexperienced General Management; and 3. Inefficiency of shipping and receiving.
ANALYSIS & SOLUTION 1. Poor Management Accounting System
Analysis
Binson’s Country Market currently prepares only one income statement after the year end for both the stores. It makes it difficult to track the profitability of each department in each store, other than the sales by department, which are captured by the cash registers. As well, for the future
[pic]
Memo
To: Management Team & Employees
From: Ownership
Date: July 11, 2012
Subject: Management Accounting System, General Management and Loading Docks
Managers & Employees,
Attached is the report that we have prepared, outlining future strategies Binson’s Country Markets must adopt moving forward. The report gives a description of the situation an analysis, followed by a final recommendation.
Please let us know should you have any questions or require further clarifications on this report.
Yours truly,
Ownership
INTRODUCTION AND PROBLEM STATEMENT
The purpose of this report is to address three main problems that we have identified. First, we will be analyzing the requirement for establishing new management accounting system to ensure profitability of departments and store with return on sales and return on investment. Secondly, we will consider hiring experienced management to assist in adequate staffing during busy and non-busy times during operating hours. Finally, we will analyze the investment on the new loading docks based on net present value methodology and we will provide our recommendation as to whether or not to construct new loading docks.
ISSUES
We have reviewed the operations at Binson’s Country Markets and identified the following issues: 1. A poor management accounting system disabling us from ensuring the profitability of departments and stores with return on sales and return on investment; 2. Inexperienced General Management; and 3. Inefficiency of shipping and receiving.
ANALYSIS & SOLUTION 1. Poor Management Accounting System
Analysis
Binson’s Country Market currently prepares only one income statement after the year end for both the stores. It makes it difficult to track the profitability of each department in each store, other than the sales by department, which are captured by the cash registers. As well, for the future