Every business must have their benefit but it also have
their own challenge or problem in business. Shopping limited is a family-owned
and managed 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 problem that occurs in the company that she need to handle it to
improve the productivity of work or activity of the company will run smoothly.
the problem that occur is the wasted of ingredients when Claude sets a
very high standards for the restaurant and will throw away cooked dishes which
do not meet these standards. For this problem, Samantha have to set up a backup
plan if the ingredients are 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
affect 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
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 ingredient 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. 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, 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 is delivered to one store-room for all department
which it recently mess 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 keeps 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
they are maintaining their collecting data using the manual system.
Nowadays, many company use computerized system which make 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 use 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.