4. The depreciation accounting changes assume that Harnischfeger’s plant and machinery will last longer and will lose their value more slowly. Given the business conditions Harnischfeger was facing in its primary industries in 1984, are these economic assumptions justified? I think the economic conditions were justified; the company was experiencing the diminishment in sales resulting in less wear and tear in machinery, increasing the useful life of it. 5.
A recession is the part of the business cycle which is characterised by falling levels of demand, very little investment, low business confidence and rising levels of unemployment. It is neither as long lasting nor as severe as a depression. A recession is two successive declines in quarterly gross domestic product. A recession provides extremely harsh conditions for businesses to survive in, in order to survive a recession businesses have to adopt strategies that they believe are they best way for them to see through the recession and continue to make a profit on the other side. One strategy that a business can implement is to cut costs.
| Anderson, Olds, and Watershed, CPAs | Memo-X-1 To: | Darlene Wardlaw | From: | Auditor in Charge of Apollo Shoes, Inc. Anderson, Olds, and Watershed, CPAs | Date: | February 9, 2012 | Re: | Acquisition and Expenditure Cycle | | | Cost of Goods Sold has decreased eight percent since last year. From a review of the minutes of the meeting held on June 30, 2011 it is known that there was a general increase in prices by 10 percent. This was in response to declining sales. Since actual sales of goods have actually been declining the drop in cost of goods sold is expected. Research and Development has been eliminated completely since last year.
Mantkelow (2014) explains lean manufacturing as based on "finding inefficiencies and removing wasteful steps that don't add value to the end product." Lean operations helps to reduce waste in production by using resources to only produce what the customer is demanding. A company that is using lean operations has measurable throughput. “Every minute that a product is not sold the cost accumulates and the competitive advantage is lost, this is the manufacturing cycle time” (Heizer and Render, 2010) this analysis could have been used to scale down production in the third and fourth quarter when it became obvious there was excess inventory. For starters, there is no value in holding 60 days' worth of inventory, to adopting lean principles would immediately help us to commit to inventory reduction and better alignment between production and demand.
If they are out of season and output is down, less help is needed so layoffs will occur. Next you want to make sure your company is well respected based on the moves you make. Government plays an important role in the economy. By manipulating the arsenal of tools within a fiscal policy, the government can either speed up or slow down the economy depending upon what issues needs to be addressed socially and economically. By completing this simulation I have learned how decisions relating to fiscal policy can affect the economy.
Frank Campbell, Director of Southern Sales Division, has recognized the decrease in sales and desperately seeking to meet sales goals. Because of this pressure, he pushed two orders to be posted in December 2010. The two orders were not to be fulfilled until February 2011. He pressured the accounting department to recognize the sales in December 2010 and to ship out the products to the consumer. This
We will cater to market roughly 100 miles in diameter from the xxxxxx area. CES will provide home automation and home theater solutions to the people in the market area. In order to fund the startup costs of CES the owner Blake has sold a piece of investment real estate and was able to obtain $93,000 in profit from the sale. These funds will be used to provide the necessary startup capital for CES. $60,000 will be put in a business account for startup costs and the remaining $33,000 will be put in savings and be available as a liquid asset for gaps in product purchase and customer payment.
In 2008, fliers can expect to see fewer flights and fewer seats as airlines cut costs and reduce growth to counteract rising fuel prices. In essence, peak flying season is becoming a year-round affair. Bailey observes that, “Because full flights cause airlines all sorts of operational problems, travelers should also brace for continuing problems with delays and misplaced bags. That means the chance of being bumped from an oversold flight could be greater, and finding a seat on a later flight will take longer.” Paul S. Hudson, executive director of the Aviation Consumer Action Project said, “It’s not a good thing,” about airlines reducing capacity. “You’re going to degrade the reliability of the system.” Experts say it is
The status and role of the elderly in the future will increase because the birthrate has dropped to an all-time low. b. There will be an elderly revolution, termed the “silver-haired rebellion,” which will place much of the lost power and status back into the hands of the older segment of society. c. As the rate of technological change accelerates, knowledge quickly becomes obsolete, and this decreases the status and role of the elderly (they are no longer the storage houses of technological knowledge; libraries and databanks have taken over this role). d. In the future, there will be a major reorganization of kinship and the family, which will restore power to the elderly.
Opening a marketing department in each division to increase the investment in R&D to compensate for the production shortage in the future government contracts. 7. Competences technical skills Q 2 – What are the weaknesses of Acorn? The weak points in Acorn are in: 1. Project management in the company is still new and less developed than the competitorsf1.