Riordan Business Systems Riordan Manufacturing currently has four plants of operations. These plants are in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hungzhou, China. Currently the Operations department runs on independent Microsoft SQL servers running Microsoft Project, and Microsoft Office 2003. The Research and Development department recently received an upgrade to there outdated Computer Aided Drafting Software from aSa Solutions because the system on hand was inadequate to handle the needs of the Pyramid Bottle project. Human Resources The human resources department utilizes the OpenPro ERP software to sustain and maintain all the business systems of the companies. In accounts receivable, OpenPro records sales and monitors customer payments and has a customer master file. Here an unlimited number of records can be maintained. Each customer is identified by a 15 digit alphanumeric code. In addition to the usual customer number, name and address, the file contains last payment amount and date, and discount and account balance information on the same screen. Opposed the old system in which you could not view multiple data. With this new business system, sales transactions are recorded instantaneous allowing interactive entry, editing and posting of sales and credit memos. The due dates for the charges and prompt payment discounts appear on the printed customer invoice. Item codes are entered with the quantity sold. The description unit price appears as entered into the data file. There is no limit to the number of items that can be included in a single invoice. OpenPro payroll at Riordan supports a variety of specials function ranging from calculating payroll checks with individual deductions to maintaining information required for state and federal reports. This system also supports many user defined pay periods such as daily, weekly, semi-monthly, quarterly and annual. Also, different employee classifications like hourly, salary, or salary with overtime, and multiple state income taxes. A detailed listing of individual payroll transactions is maintained to determine cumulative figures. The system prints payroll checks for each employee or manual checks can be written. A built in time card system makes payroll processing easier. The Job Costing Module at Riordan tracks all costs related to a specific job or project. It provides management the information it needs to quickly identify costs which are out of line with budget estimates and requirements. The Job Costing Module monitors each job’s activities, comparing the actual and budgeted figures in terms of units (labor hours) and dollars. Existing jobs with budgeted and actual labor, material, and overhead rates can be used in structuring new projects and providing comparative information to determine appropriate pricing.
Although Riordan Manufacturing has a generic strategic direction, a comprehensive strategic plan reevaluation and development must occur after the move to China. Environmental scanning, strategy formulation, strategy implementation, evaluation, and control are fundamental to the creation of a strategic plan (Wheelen & Hunger, 2010). Because, strategic planning is integral to the corporate strategy and success of Riordan the board of directors' requesting Team B formulate a comprehensive strategic plan for their organization.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and have not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed price contracts with little to no stipulations. For this project Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project. Franklin Electronics won the contract because they had the lowest price. They developed a work breakdown structure that consisted of 45 work packages with 4 of the work packages being delivered in the first 4 months. They also developed a simple status report consisting of the work packages due, budgeted cost for work scheduled, budgeted cost for work performed, actual cost for work performed, cost variance and price variance. When they deliver the first status report, the Franklin Electronics project manager is called into an emergency meeting because Spokane Industries vice president is unhappy with the progress. In this paper, we will discuss Six Sigma process improvement for tracking time and cost, recommendations on how Franklin Electronics can use project management principles to meet their goal of improving efficiency and empowering management to make better and informed decisions through the use of Earned Value Management, how an effective Earned Value Management System contributes ...
Accounting/Finance application systems like Peachtree, Net Suite and QuickBooks let you manage your business with a little or no experience. All three application systems allow the users to manage the companies' capital including bookkeeping, inventory, non-inventory & service items, sales orders, purchase orders, and reports. It allows the companies to keep tracking of the financial assets and at the same time have the information the accountant needs. Using the accounting/finance application system, makes it easier to enter and process the data rather than manually enter and process the data.
With the implementation of such a system that can handle appointment scheduling, payment tendering, settlement, and rate change management which PepsiCo had desired, PepsiCo will be able to have a sole server for accessing freight audits and payments that previously took up to a month before the centralized accounts payable. Before such a system could be fully implemented, each audit cost PepsiCo $25-$28 per invoice to pay each freight bill (Web, 2014). With more than 90,000 invoices per year, the costs quickly add up. Completely eliminating these costs with the system Pe...
"College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web
Stair, R.M., Reynolds, G.W., Gelinas, J.U. Jr., Sutton, S.G., Hunton, J.E., Albright, S.C., Winston, W.L. & Zappe, C. (2007) Accounting Information Systems and Financial Modelling, Thomson, South Melbourne, Victoria, Australia.
The contained paper has been prepared with objectives of elaborating over the three different costing methods namely, Absorption/Full Costing, Variable/Marginal Costing, and Activity Based accounting. The first segment of the report seeks to define and illustrate the costing methods based on the personal understanding of the writer gained through the class room and the academic readings. Part two of the report takes a form of short essay, written critically to evaluate the application of standard costing and variance analysis to any size of business, and concludes with a verdict that whether or not standard costing and variance analysis is applicable to each business with consideration of its costs and benefits of the system.
The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data
An organization costing system is a system that helps the management with the strategy planning while the system plays an important role in providing accurate cost information about the products and customers (Curtin, 2006). UPS utilizes the Activity-Based Costing (ABC) system. ABC assumes that activities cause costs and that cost objects create the demand for activities (Marx, 2009). The key to cost allocation under ABC is to identify the activities that are performed to provide a particular service and then aggregate the costs of the activities (Gapenski, 2012). This is a marked departure from the practice of sharing overheads costs equally or overheads becoming part of the overall profit-loss estimate instead of component product pricing (Nayab, 2011).
As we see that process costing only concentrates on what happens in the departments, unit cost information in this type of cost comes directly from the department accounting office, while in job costing the unit cost information is derived from the job cost sheet (Walther, L. M. & Skousen, C.J.
Accurately forecasting the cost of projects is vital to the survival of any business or organization. Cost estimators develop the cost information that business owners or managers, professional design team members, and construction contractors need to make budgetary and feasibility determinations. From an Owner's perspective the cost estimate may be used to determine the project scope or whether the project should proceed. According to the U.S. Department of Labor there were about 198,000 cost estimators in 1994. That of which 58% work in the construction industry, 17% employed in manufacturing industries, and the remaining 25% elsewhere. From this we could conclude that a great deal of cost estimation lies in the construction industry, where multi-million dollar contracts are formed after a thorough cost estimation.
From PayPal to Debit cards, from EFT to Credit cards, this modern world has been inundated with new ways of making business transactions. Instead of the conventional use of dollars and nickels, now there are electronic payment systems. These types of systems allow for better trust and acceptance between consumer and businesses. In the traditional way of buying a product, one would see a product in person, and pay for it with cash or credit. In e-commerce, the business uploads images of its products online and it enables its customers to shop it using any type of electronic payment system.
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
...h the full expenses included. Challenge overseeing and incorporating over a huge supply change and developing patterns.
Today, there is a range of computerised systems in the market that business can use to keep track of their finances; few of the most recognised for their performance are Sage, Microsoft Dynamics, Oracle, QuickBooks, SA...