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kindly solve all the 2 answers breifly as accordance to the weightage Question Brabant NV of the Netherlands is a wholesale distributor of Dutch cheeses
kindly solve all the 2 answers breifly as accordance to the weightage
Question Brabant NV of the Netherlands is a wholesale distributor of Dutch cheeses that it sells throughout the European Union. Unfortunately, the company's profits have been declining, which has caused considerable concern. To help understand the condition of the company, the managing director of the company has requested that the monthly income statement be segmented by sales territory. Accordingly, the company's accounting department has prepared the following statement for March, the more recent month. (The Dutch currency is the euro, which is designated by .) Cost of goods sold, and shipping expenses are both variable; other costs are all fixed. Brabant NV purchases cheeses at auction and from farmers' cooperatives, and it distributes them in the three territories shown in the statement above. Each of the three sales territories has its own manager and sales staff. The cheeses vary widely in profitability; some have a high margin, and some have a low margin. (Certain cheeses, after having been aged for long periods, are the most expensive and carry the highest margins.) Required: 1. List any disadvantages or weaknesses of the statement format listed above. (15 Marks.) 2. Explain the base that is apparently being used to allocate the corporate expenses to the territories. What are the advantages and disadvantages of using these allocations? (15 Marks.)Step by Step Solution
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