A. What are some of the caveats relating to accounting practices that you would include in the report?

B. Which numbers should be interpreted cautiously?

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For the firms in Problem, you have been asked to make a report to the management of Firm A. What are some of the caveats relating to accounting practices that you would include in the report? Which numbers should be interpreted cautiously? Problem A company has gathered the following financial information for itself and a competing firm. They wish to compare productivity for the two firms (all numbers in 000s). Firm A Firm B Labor $30,000 $16,000 Plant and equipment 200,000 150,000 Energy 17,500 20,500 Materials 200,000 180,000 Sales 1,200,000 900,000 Step 1 of 2 A Determine the points to note while preparing a report to the management: If Person X are preparing a report to the management of Firm A, It is more essential to note that dissimilar firms book dissimilar categories of costs differently. Person X must ensure that, account of Firm A and Firm B for material costs in a persistent manner since that is a major component of cost of goods sold. Comment Step 2 of 2 ^ Conclusion: If the management of firms focuses more on overall productivity ratios, the comparisons are most strong. Thus, the caveats relating to accounting practices for Firm A has been discussed