Guillermo Furniture Store Paper
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Guillermo Furniture Store Scenario
Antoine Cameron
University of Phoenix
Accounting
ACC/561
Diane Rogers
October 04, 2010
Guillermo Furniture Store Scenario
Guillermo Navallez owns a furniture store near his home in Sonora Mexico. As of the present time Guillermo has been very successful with his business. Recently there has been competitors entering the furniture market nearby and can make the furniture with the same quality as Guillermo in half the time with new technology. Guillermo needs to use budgets and performance reports in his decision-making process to stay competitive in the market.
Guillermo Decision Making Process
Guillermo is faced with some tough decisions to keep his business afloat. Guillermo can use budgets and performance reports in his decision-making to “use the information for day-to-day operating decisions and for long-range strategic decisions” (Horngren, 2008, p. 5). Guillermo can also use the budget and performance reports to see which would be more profitable for him, to stay as only a furniture manufacturer, or move into the distribution side of the business. The scorekeeping can paint a clear picture for Guillermo to decide which way his business should move forward so he can be most profitable, whereas still maintaining the quality of life he wants.
Ethics influence Accounting Decisions
“Companies often rely on accountants to safeguard company ethics. Accountants have a special responsibility to make sure that managers act with integrity and that information disclosed to customers, suppliers, regulators, and the public is accurate. If accountants do not take this responsibility seriously, or if the company ignores the accountants’ reports, dire consequences can follow” (Horngren, 2008, p. 9). Guillermo ethics cannot be deterred by the state of his business. Guillermo could easily fudge numbers to make his company look better to larger companies trying to acquire the smaller companies. I believe...
Antoine Cameron
University of Phoenix
Accounting
ACC/561
Diane Rogers
October 04, 2010
Guillermo Furniture Store Scenario
Guillermo Navallez owns a furniture store near his home in Sonora Mexico. As of the present time Guillermo has been very successful with his business. Recently there has been competitors entering the furniture market nearby and can make the furniture with the same quality as Guillermo in half the time with new technology. Guillermo needs to use budgets and performance reports in his decision-making process to stay competitive in the market.
Guillermo Decision Making Process
Guillermo is faced with some tough decisions to keep his business afloat. Guillermo can use budgets and performance reports in his decision-making to “use the information for day-to-day operating decisions and for long-range strategic decisions” (Horngren, 2008, p. 5). Guillermo can also use the budget and performance reports to see which would be more profitable for him, to stay as only a furniture manufacturer, or move into the distribution side of the business. The scorekeeping can paint a clear picture for Guillermo to decide which way his business should move forward so he can be most profitable, whereas still maintaining the quality of life he wants.
Ethics influence Accounting Decisions
“Companies often rely on accountants to safeguard company ethics. Accountants have a special responsibility to make sure that managers act with integrity and that information disclosed to customers, suppliers, regulators, and the public is accurate. If accountants do not take this responsibility seriously, or if the company ignores the accountants’ reports, dire consequences can follow” (Horngren, 2008, p. 9). Guillermo ethics cannot be deterred by the state of his business. Guillermo could easily fudge numbers to make his company look better to larger companies trying to acquire the smaller companies. I believe...