Guillermo Furniture Store Decisions

The Guillermo Furniture Store Decisions
Team A
Accounting/ACC 561
November 10, 2010
Professor Rios, Angel J.

Guillermo Furniture Store Decisions
      Navallez Guillermo’s quest to remain competitive in the furniture industry comes down to analyzing cost accounting measures.   By carefully analyzing balance sheets and income statements, accounting officials can provide management a synopsis of where company strengths and weaknesses are, and then corrective measures can be adjusted to improve company performance. A break even analysis, return on investment, and residual income will be calculated as well as many other issues will be discussed to allow Guillermo to make the best informed decision for his company. In this report, Team A examines the components that make up a cost control system and explains how management uses this information in their decision-making process.
      Guillermo Furniture Store can use the following three systems to help achieve the store’s organizational goal. The Quality Control System is in the manufacturing business. Quality is the number one priority concerning customer satisfaction. Thereby the quality control system is required to satisfy the customer’s needs and trends. Quality control is a system of routine technical activities, to measure and control the quality of the inventory as it is being developed (Quality Assurance and Quality Control, 2010). Once ensured that customers are satisfied with their high quality, Guillermo Furniture can consider expanding business abroad.
      A management control system is a process designed to verify the status of the advancement of planned objectives and the efficacy and efficiency of the organization through analysis of resources, costs, and proceeds (Fundamentals of Management Control, 2010).

Guillermo Furniture has to take an advanced approach to the market instead of responding to changes in the market. With a slanted and defensive attitude, a company cannot survive in the...