Guillermo Furniture Store Analysis

Guillermo Furniture lay in Analysis ACC/Accounting 561 March 28, 2010 Guillermo Furniture Store Analysis Dinero Gerencia Consulting has been hired to help Guillermo Furniture Guillermo because its profits ar drastically decreasing. Dinero Gerencias goal is to help Guillermo Navallez emergence his profits and reduce his losses. In erect to do so, Guillermo must(prenominal) have effective sales directing. A sales forecast is a prediction of sales under a given set of conditions (Horngren, 2008). Sales forecasting can be precise difficult to management; however, it is important because it helps achieve the companys actual results and improve the business revenues. Budgets and Variances Budgets tend to be made when companies clearly link budgeted performance goals with the performance measures used to issue employees (Horngren et al., 2008). Budgets need to be developed with honourable considerations, employees are much likely to accept and use the budget to achieve stated objectives. There are several factors that Guillermo should consider in order to help management and employees achieve profitable results.

One of the ethical decisions he can make is to provide competitive payoff and obtain industry standard materials and equipment. Guillermo could decide to pay his employees less(prenominal) and increase profit but this can result in dissatisfied employees. He can also decide to purchase lower grades of lumber and equipment but this can result in cheap quality material leading to disastrous results. bottomland line is that ethical decisions institute how the budget is used. Variances and deviations may be a concern if those reporting have different morals than the organization. This may prompt a follow up by management and even if the processes are followed, for most items - like the budgets for finish wood or flame retardant coating, it will be unlikely that variances will be zero.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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