Assume That You Are Preparing For A Second Interview

Assume That You Are Preparing For A Second Interview With A Manufactur

Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials but has indicated that it has several qualified applicants. You anticipate that in this second interview, you must show what you offer over other candidates. You learn the company currently uses a periodic inventory system and is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items.

To show your abilities, you plan to recommend that it use a cost accounting system. Instructions: In preparation for the interview, write a memo to the CFO of the company outlining the following: Your cost accounting system recommendation and why it is suitable for this company. A general description of the documents that the proposed cost accounting system requires. How the documents in part 2 facilitate the operation of the cost accounting system. To receive full credit you must answer all parts of the question in the memo, in WORD and attach.

Your memo must be at least 3 paragraphs, but no more than one page. Your file must end in .doc or .docx You will be graded on how well you address the questions. Addressing the questions involves identifying relevant facts, applying the chapter concepts, and answering each question completely. Proper APA formatting is expected and required (cited sources, reference page, etc.). Supplement and synthesize your analysis with outside scholarly sources.

For assistance with APA citations, please visit the following links: The American Psychological Association Website: The APA site has numerous links (see “most popular”), but you may want to view the tutorial if you are completely new to APA: This assignment will be submitted for plagiarism detection. Do not copy or paste any part of your submission from any other source, not even your text book. If you must copy a phrase, or definition, it must be in quotation marks and cited, see APA above. Failure to do so will result in a violation of the BC honesty policy.

Paper For Above instruction

To effectively transform the inventory management practices of the manufacturing company specializing in custom holiday decorations, implementing a robust cost accounting system is essential. I recommend adopting a Job Order Costing system, which is particularly suited for a business that produces custom, one-of-a-kind products. Unlike a periodic inventory system, which provides limited real-time data, a job order costing system facilitates detailed tracking of costs associated with each individual order, thereby enhancing the company's ability to manage its inventory more efficiently and respond swiftly to customer demands. This method assigns direct materials, direct labor, and manufacturing overhead costs directly to each specific job, offering detailed insights into the profitability and cost drivers of individual projects, which is critical for a business that deals with custom items.

The proposed cost accounting system requires specific documents to function effectively. The primary documents include job cost sheets, which record all costs associated with each job; material requisition forms, which track raw materials used; labor time tickets, documenting hours worked and labor costs; and manufacturing overhead application sheets, which allocate overhead costs based on predetermined rates. Job cost sheets serve as the core record, linking all direct costs to specific jobs, while requisition forms and time tickets provide real-time data on resource usage. Overhead sheets ensure accurate distribution of indirect costs, all of which are essential for precise cost calculations and financial analysis. Additionally, regular updates and reconciliations of these documents ensure data accuracy and timely decision-making.

These documents collectively facilitate the operation of the cost accounting system by enabling detailed cost tracking and analysis at each stage of the production process. They allow management to monitor job profitability, control costs, and make informed pricing decisions. Accurate and timely documentation helps in identifying cost overruns early, optimizing resource allocation, and improving overall operational efficiency. Moreover, integrating these documents into an enterprise resource planning (ERP) system can streamline data flow, reduce errors, and provide real-time insights, which are invaluable for a business that must adapt quickly to custom specifications and tight deadlines. In summary, effective documentation is crucial for leveraging the benefits of a job order costing system, ultimately leading to improved inventory management and profitability for the company.

References

• Bhattacharyya, A. K. (2018). Principles and practice of cost accounting. PHI Learning.
• Drury, C. (2018). Management and cost accounting. Cengage Learning.
• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial accounting. McGraw-Hill Education.
• Hilton, R. W., & Platt, D. E. (2016). Managerial accounting: Creating value in a dynamic business environment. McGraw-Hill Education.
• Kaplan, R. S., & Cooper, R. (1998). Cost & effect: Using integrated cost systems to drive profitability and performance. Harvard Business Press.
• Horngren, C. T., Datar, S. M., & Rajan, M. V. (2015). Cost accounting: A managerial emphasis. Pearson Education.
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• Young, S. M., & Montgomery, D. B. (2014). Cost accounting. McGraw-Hill Education.