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Idea of discontinuing the products with losses
Course:- Financial Accounting
Reference No.:- EM13691216




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Q1:

Many computerized accounting packages now come with letter templates that are predesigned and require the name of the client to be added into the template.

If you wanted to send out a notice regarding a big sale to your customers, what would be the preferred way of communication:

Would it be snail mail it or via e-mail? Why?

Would your answer change if this notice was for a contract instead? Why or why not?

Q2: Financial Statements

Roger, a friend of yours, is analyzing the financial statements of the company where he works. The company manufactures customized office furniture and uses the job costing system to track the different types of furniture. He notices some furniture is sold at a loss while the rest at a profit.

He is contemplating whether to recommend discontinuance of the furniture with losses and has come to you for advice. Your advice should provide answers to the following questions:

What would you tell Roger about his idea of discontinuing the products with losses? Give your reasons.

What other factors besides losses should be considered before discontinuing a product? Explain in detail.

Answered:-

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The Snail mails are the other names for the regular mails that are mainly handled by the government of the region. Given the premise of the credibility of any government organization the service given by that organization is supposed to be full proof and without any glitches (Nowak, 2014). Before the event of the internet the snail-mails were famous and ensure right delivery to the intended customers at the right time. But with the advent of technology the preference of the customers shifted towards quick delivery along with acknowledgement (Bender, 2014).

In case of a Big Sale the main motive of the organization is to sale as much products as possible during that period. For that the firm needs to ensure that maximum number of customers or the target groups should be aware of the sails going on. This requires mass communication from the end of the organization to the customers. The communication of the Big Sale should also be made full proof so that the organization can recheck on the facts that it has communicated to all possible customers or target groups. Taking into premise the above assumptions the e-mail is the best way to communicate a notice regarding a big sale.




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