Question

In: Accounting

ABC is a local Perth based company. It manufactures cricket bats, balls and other accessories. It...

ABC is a local Perth based company. It manufactures cricket bats, balls and other accessories. It has experienced sales growth over the last 7 years. The company has implemented several automated systems in its assembly plan and employs a sales, technical specialist, cost, production and engineering managers. ABC has supply chain relationship with several local, interstate, and international companies for manufacturing bats, balls, and accessories. During early 2020 ABC experienced a major dislocation of its operation due to Covid-19 pandemics across the globe.

Required - What is the primary information needs of each manager during this period?

Specifically - sales, technical specialist, cost, production and engineering managers.

Solutions

Expert Solution

Information needs of each manager during this period-

SALES MANAGER:

The changed demand for the accessories in the local market ,different states and different countries, since projected demand based on previous sales won’t be appropriate as there would be a huge loss in the demand of the sports accessories due to pandemic.

TECHNICAL SPECIALIST:

Here technical specialist won’t require much new information, as his role of giving technical assistance in production of proper sports accessories hasn’t changed, he’ll still have to follow the same methods for assuring the quality of the gear.

COST:

Now since there will be less demand and hence less revenue, cost manager will need to assess the necessary cuts to be made in the salary of the workers to maintain satisfactory profit levels for the company(based on the ranks of the employees, cuts by the competitors etc.).

He’ll also have to collect information on the changed rates of both raw material and output, so as to make best profit margins possible.

PRODUCTION AND ENGINEERING:

Since he will be dealing with the production line, he’ll need to know the health status of the workers so as to avoid any kind of health issues among the workers caused due to spread of the virus.

PLEASE LIKE THE ANSWER IF YOU FIND IT HELPFUL OR YOU CAN COMMENT IF YOU NEED CLARITY / EXPLANATION ON ANY POINT.


Related Solutions

Sticky Wickets manufactures Cricket Bats. In May 2010 the budgeted sales and production were 19,000 bats...
Sticky Wickets manufactures Cricket Bats. In May 2010 the budgeted sales and production were 19,000 bats and the standard cost card is as follows:                                                                                                              Std Cost                                          Std Cost Material (2kgs @ $5/kg)                                                                         10 Labour (3 hrs at $12/hr)                                                                         36 Overheads (3 hrs @ $1/hr)                                                                     3 Marginal Cost                                                                                                                                                  49 Selling Price                                                                                                                                                    68 Contribution                                                                                                                                                     19 Total fixed costs in the period were budgeted at $100,000 and were absorbed on the basis of labour hours worked. In May 2010 the following results...
The Riley Corporation manufactures baseball bats and balls for the league teams. For every 3 bats...
The Riley Corporation manufactures baseball bats and balls for the league teams. For every 3 bats sold, 5 balls are sold. Bats sell for $18 each, while balls sell for $6 each. Manufacturing variable costs for the bats are $6 each and for the balls $2 each. Calculate the break-even point in dollars for Riley if the fixed costs are $180,000. (Round your answer to the nearest whole unit). Select one: a. $ 295,714 b. $ 25,714 c. $ 540,000...
QUESTION 1 Smash Ltd, a company specialising in the production of cricket bats, is analysing the...
QUESTION 1 Smash Ltd, a company specialising in the production of cricket bats, is analysing the potential cash flows from the opportunity to purchase additional machinery to meet increased demand, due to increased interest in the sport as a result of the upcoming T20 World Cup. The bats will be sold at major sporting retailers throughout the country. The following potential cash flows have been provided: YEAR CASH FLOWS 1 R 11 500 000 2 R 14 300 000 3...
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was...
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was...
Balls ‘n Bats is a $24 million company with 1 president and 10 sales reps in...
Balls ‘n Bats is a $24 million company with 1 president and 10 sales reps in these two territories: Northern U.S. ($16 million in sales, 7 reps), Southern U.S. ($8 million in sales, 3 reps). The company sells two different products (and each rep sells both): -Balls ($18 million in sales) and -Bats ($6 million in sales). And you can assume that the following list contains information on all costs for this company:                 Each rep is paid a straight...
ABC Construction (ABC or the “Company”), an SEC registrant, is a construction company that manufactures commercial...
ABC Construction (ABC or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 2018, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire...
ABC Construction (ABC or the “Company”), an SEC registrant, is a construction company that manufactures commercial...
ABC Construction (ABC or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 2018, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT