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invoices on sales revenue and to seek recommendations on how to entice customers to pay more quickly. He is wondering if there might be drawbacks
invoices on sales revenue and to seek recommendations on how to entice customers to pay more quickly. He is wondering if there might be drawbacks to requesting quicker payments. "How are union negotiations going?" Jastu turned to the Human Resources Manager who had been quiet throughout the meeting. She sighed. "They're going- we should probably project a 10% increase salary expenses next year- they're playing hardball because of the high inflationary environment right now!" Jastu chewed his lip and refrained from asking if firing some of the louder employees was a good way to send a message- perhaps that would limit raises to only 5%. As it stood now, he was expecting sales to remain flat next year and operating expenses to increase 8% overall. What would that do to the firm's bottom line? He made another mental note to ask for help with the projection and perhaps his negotiation strategy too. Wisely, he steered the conversation in a new direction, turning to the Production Manager. "So, our new premium Titan business unit- how is that going?" He frowned. "We don't have exact profit numbers yet since we get special orders over there and we are having trouble tracking costs of those orders." Jastu nodded. "OK, so we need a proper costing system for specific jobs." He had a suspicion that there were issues in the premium Titan department and had planned to ask his cost accountant friend about it, but she was away on a vacation at the moment. Jastu would need to seek help elsewhere- the business was getting a lot of special orders and tracking and recording costs of each order accurately was imperative. Specifically, he needed advice on allocating manufacturing overhead costs and making journal entries- detailed examples of both would really help. With so much to think about, Jastu ended the meeting and called you, an MBA with accounting expertise, to help him. Objective: Write a detailed business memo providing feedback on the issues raised in the case. Be specific to the case and reference anything you copy-paste/paraphrase heavily from the internet (or other source)- your work WILL be analyzed for Al use (NOT permitted) and similarity. You MUST submit your work digitally at the end of class and return the case paper
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