ACCOUNTANTS HELP,,,,,any ideas i got to finish this before due date?
Question:
CASE STUDY-3 [LABOUR]
A medium sized company with 600 employee’s produces and sell twenty different products within the car care product range (e.g. Car shampoo, polishes, touch –up paints etc) the ultimate consumer being owners or operators of motor cars. Annual sales total $15 million and distribution is through three channels of distribution i.e., wholesalers, retail traders and garages. There are 22 salesmen employed by the company.
Technically the company is regarded as efficient but administratively it is backward because little money has been spent on office procedures and systems. However, the company now has the opportunity to use a computer for two, but only two, of the following tasks:
1.Payroll preparation and gross pay analysis – this is currently done on two keyboard accounting machines.
2.Stores records and stores control for materials and finished goods - currently done manually
3.Sales analysis by value per salesman. – currently done manually
You are required, as the accountant, to write a brief report to the managing director suggesting which required two of the three tasks are should be transferred to computer, stating the reasons for your recommendations and also stating the reason(s) for excluding the other task.
Answer:
I'm not going to answer it for you, but here's a hint
600 employees
Ann sales of $15 million of 20 diff products for those 22 salesmen
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