Question
A. Suppose the goal of the firm is to now provide superior customer service by having the sales consultant identify and sell to the specific
A. Suppose the goal of the firm is to now provide superior customer service by having the sales consultant identify and sell to the specific needs of the customer. What does this goal suggest about a change in managerial accounting and control systems?
B. What is the additional dollar amount of inventory that must be held? Show all calculations to determine the additional inventory required.
C. Using the information on sales and expenses for a typical store, provide an analysis of the additional store profit contributed by the plan. Assume that it costs 12% a year to carry the added inventory. Show all calculations. Look at data before and data after then calculate delta.
D. Should the company keep the plan? Explain your estimate of the financial impact of the plan and also incorporate any nonfinancial information you feel is relevant in justifying your decision. provide all arguments to the position. I believe that it is best to keep the plan but I want to know why and why would someone want to remove it.
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