Reference no: EM13825384
Problem-
Case Study: Electronic Boards plc
John innes and Falconer Mitchell, University of Edinburgh
This is a general case on the design of a management and cost accounting system for a firm operating in a high-tech environment. It provides an opportunity for a broad discussion not only of the appropriateness of particular accounting techniques but also of the need to consider strategic, behavioral and organizational factors.
Introduction
Jack Watson, an electrical engineer, established Electronic Boards plc as a "one-man" company in the early 1980s. From small beginnings, the company earned a reputation for the quality and reliability of its products, and grew rapidly and consistently until, by 2011, it employed over 200 people and had achieved a turnover of $56 million and a profit after tax of $4.1 million. In addition to Jack Watson, the managing director, the board consists of a production director, a research director and a marketing director.
Market circumstances
The company produces customized batches of electronic circuit boards for approximately 15 major customers in the defense, computer, electrical goods and automotive industries. The market is highly competitive in respect of both price and quality. Market price has fallen steadily in recent years. In addition to several other independent firms both form the UK and Far East, many of their larger customers have in-house facilities for the production of circuit boards. These latter firms deliberately subcontract a portion of their circuit board requirements for strategic reason. In a recession they can cease or reduce their subcontracting and bring the work in-house, so stabilizing their own employment levels.
Operational circumstances
Recession
In 2011 the firm experienced its first recession. Market share fell, sales dropped to $21.5 million, a loss of $1.7 million was made and the company's liquidity suffered considerably. The market decline was expected to continue in 2012 and the managing director of Electronic Boards plc sought ways of alleviating the effects of the recession on the company's financial performance. He found, however, that the lack of management accounting information hampered him in pinpointing problem areas and in identifying cost-reduction possibilities. Consequently, he approached a firm of management consultants to provide a blueprint for the development of a management accounting system over the next two years.
Additional information-
The case study relates to Strategic Management Accounting. The case study is about Electronics Boards, a company started in the 80s, which was appreciated for its good products and good profits. During the recession, the company suffered losses and it was pointed out that the lack of management accounting system was one of the reasons. Implementing Strategic Management Accounting system has been given in the solution.
Word limit- 500.
Whose sales will not affect trescotts market
: Trescott Company had the following results of operations for the past year: A foreign company (whose sales will not affect Trescott's market) offers to buy 3,000 units at $17.00 per unit. In addition to the variable manufacturing costs, selling these..
|
The most important economic indicators
: As Marthinsen explains, GDP and unemployment are among the most important economic indicators, but there are hundreds more that economists analyze. The National Bureau of Economic Research maintains a comprehensive listing with links (Links to an ext..
|
At the year-end-the book value of the mine
: Early in the year, Amazon purchased River mine for $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are done. During that year, 115,000 tons of ore were removed. At ..
|
Freedom of religion guarantee
: The freedom of religion guarantee in the First Amendment is actually two different guarantees. What are those two guarantees and how do they differ? Include proper in-text citations in APA format to support your answer.
|
Implementing strategic management accounting system
: During the recession, the company suffered losses and it was pointed out that the lack of management accounting system was one of the reasons. Implementing Strategic Management Accounting system has been given in the solution
|
Describe the evolution of industrial production
: Describe the evolution of industrial production in the U.S. from 1790 to 1860. Use statistics to describe changes in production levels. Please include references.NO plagiarizing.Need references and there is no word count.
|
Useful life of this machinery is estimated-residual value
: On april 30, 2014 Titan purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value.
|
Using geert hofstede dimension of culture
: Using Geert Hofstede dimension of culture. Describe a significant different between cultures that you have witnessed?
|
Blueprinting the service-profit chain
: Blueprinting the Service-Profit chain
|