Guillermo Furniture Store

Guillermo’s Furniture Manufacturing Company located in Sonora, Mexico. Area described as a beautiful vacation spot and a large furniture manufacturing location in North America (University of Phoenix, 2010).
Guillermo Navallez was producing furniture for many years, area had a good supply of timber. Labor cost in the area was not expensive.
In later 1990, new competitors entered the furniture business in area, which leads to decrees in furniture sell for Guillermo furniture. Competitors were able to produce furniture to exact customer specification with help of high-technology innovation, along with affordable price.
As result of all changes in business and surrounding areas, Guillermo is facing tough decisions in increasing company profit, which alternatives better suite company future development.
In this paper we will examine how Guillermo Navallez can use budgets and performance reports in his decision-making process. How ethnics principals might influence his accounting decisions and what accounting information on Guillermo decisions.
Analysis of Different Alternatives for Company
How could Guillermo use budgets and performance reports in his decision-making process
Budgets and performance reposts can be used in several ways to help Guillermo Navallez with making professional decision.
According to CICICUS: World Alliance for Citizen Participation (2010):
A budget is a document that translates plans into money - money that will need to be spent to get your planned activities done (expenditure) and money that will need to be generated to cover the costs of getting the work done (income). It is an estimate, or informed guess, about what you will need in monetary terms to do your work (para. 11).
Guillermo recognize management dilemma and need to answer tough questions such as if he should upgrade his furniture manufacture with newest laser lathe process, should he become a representative of Norway furniture manufacture and should he sell...