Question

What is the role of the Controller on one Sales; and Direct Materials and Labor.

This summary should be in (APA format) double-spaced, single-sided, Courier New Font, 12 pitch, 1 inch margins, with no grammar or spelling errors; APA includes a title page and a reference page at the end. The cover page and reference pages will not be counted in the 3-5 pages. You should have at least 2 references – your book along with at least 1 other reference. You must cite your references.

Answer 1

The cost of a product is split among direct materials and labor, overhead, distribution, and general and administrative costs. All of these costs can contribute a significant amount to the total cost of a product, but direct materials and labor traditionally have been the largest cost elements for most products. Thus, the controller should be mindful of any control systems that will allow tight monitoring of these costs.

MATERIALS CONTROL SYSTEM

This is a system which ensures the provision of a required quantity of materials (sufficient)which are needed at the required time with minimum amount of capital/funds tied up in materials stored and the system also aims at minimizing material costs in general. It ensures that materials are efficiently purchased, stored and used or consumed in the right quantities and quality

Material control consists of controls at three levels:

Quantity controls

: These include policies and procedures put in place to ensure that theminimum amount of materials is used in production and service departments,

Financial controls:

These controls ensure that minimum funds are invested in materials, suchcontrols include the application budgets, monitoring of stock levels,

Quality controls:

These cover procedures and policies put in place to ensure that material quality standards are complied with all the time.In materials control

Importance of Labor Cost control

Labor cost requires constant measurement, control and analysis because:a) It represents human contribution to production.b) Labor is different from other factors of production in the sense that it is not subject to any technical limitations which restrict productivity.c) In view of present labor laws, labor cost should be perceived as committed cost, rather than as a discretionary cost d) Labor productivity significantly influence conversion cost per unit.

Accounting and control of labor cost requires:

a) Strict control on labor engagement

b) Correct time keeping i.e. recording the total time spent by employees in the work place.

c) Time booking i.e. analysis of time in terms of departments, operations and productionorders or jobs, which used the employee time.

d) Generation of adequate and effective manpower performance reports improvement inthe methods of remunerations, conversion of indirect labor into direct labor better planning and control and improvements in the method of production.

Sales Controller Job

The Sales Controller will organize a permanent follow-up of all sales activities and will monitor progress made to achieve the budget targets, on a corporate level, on a department level and on the level of individual client managers. The Sales Controller shall essentially work with MIS and SFdC and will produce analytical and synthetical reports. These reports will help client managers to know exactly where they are in their budget journey .The Sales Controller maintains good contacts with all client managers, with middle management and with marketing. He/she works directly with the CCO and is a privileged partner of the general management and the CEO.

Job responsibilities of sale controller

• Organizes a clear and efficient follow-up of all sales activities
• Is an expert in the use of Excel, MIS and SFdC
• Controls the correct use of SFdC by the client managers
• Works closely together with all sales teams
• Informs middle and top management about the sales process through clear and to-the-point reporting and dashboards
• Pro-actively addresses all items that impact the achievement of the budget