business must have their benefit but it also has
their own challenge or problem in business. Shopping limited is a family-owned
and managed the company which has four
retailing departments such as furnishings, kitchenware, menswear, and toys. Next, every business must have its
own management team to run the business activity.
needs to address in her role as Management Accountant of Shopping Limited
because of the problem that occurs in the
company that she needs to handle it to
improve the productivity of work or activity of the company will run smoothly.
the problem that occurs is the wasted
of ingredients when Claude sets very high
standards for the restaurant and will throw away cooked dishes which do
not meet these standards. For this problem, Samantha has to set up a backup plan if the ingredients do not achieve the standards such as the cooked
dishes can be touch up and give to employees as staff meal. It will reduce the
losses of financial of the company because the ingredients are used wisely.
The menu that listed by the restaurant in
‘French Cuisine’ side is extensive and creative but it is sometimes the
priced that charged to the menu is barely covering the food cost which affects the financial of the company when the
cost is higher than the price and because of it, they cannot gain profit for
the company. As a Management Accountant, by calculating the account of the
company, Samantha must advise the chef to maintain the quality of the food and
add up a variety of idea to the dishes with an appropriate price. For example,
the chef can decorate with a variety of
character using a stamping.
there is no stock control system in operation in the restaurant.
Samantha as a degree student in accounting and management should know that
there are three ways to control the stock such as FIFO and LIFO system plus
WCAM system too. So, she should apply this system to control the stock
properly. By using that method, Samantha will know about the stock of the
company such as the number of ingredients
used and need to top up when the stock almost finish. For example, FIFO is a system to ensure that
perishable stock is used efficiently so that it doesn’t deteriorate. The stock is identified by date received and
moves on through each stage of production in strict order.
Besides that, kitchen equipment is quite
old and has not been regularly maintained. Based on this situation, the company will have many expenses since the old
equipment always broke down and it needs more money to fix it. To avoid more
expenses, Samantha must calculate using budgeted method whether they have to
maintain the old equipment or order a new equipment that can stay long last
time to make a good quality of food.
merchandise and stock are delivered to
one store-room for all department which it recently messes up because they have four departments and all things are
saved in one store plus it is not arranged properly. For this problem, in
building business strategy, Samantha has to think to whether to find a new
property or make a specific place for each department to storing the items such
as make a renovation by adding a sector for each department and separate them
Furthermore, deliveries of the
items are not checked or counted in any way. All transaction or delivery of
the item should be checked and count when the item is kept in the store room. As a good Management Accountant,
Samantha has to make a timetable to check the item and count it whether the
item is completed in the store to avoid the loss of items.
they are maintaining their collecting data using the manual system.
Nowadays, many companies use a computerized
system which makes people easily to
collect data and calculate the profit. Samantha as management accountant should
suggest to the company to use the accounting system and use technology wisely
such as computer and internet. For example, Shopping Limited can use Microsoft
software which is Microsoft Excel and if using the internet, there are many
accounting software that can be used such
as MYOB and UBS. By using this technology, the operation of the company can run
smoothly and it also can increase the profit days by days.