Running head: Guillermo furniture store concepts paper

Guillermo furniture store concepts paper
Christy Wild
University of Phoenix
FIN/571
Bill Mellett
September 28, 2009

Guillermo furniture store concepts paper
Guillermo furniture store uses finance concepts in the decision-making process. Following is the ethical influence to the accounting decisions. Then the accounting information that is relevant for Guillermo to consider when making decisions. The scenario identifies issues, and concerns with solutions that are key to identify with, and analyze the issues and propose solutions.
Budgets and Performance Reports
The Guillermo Furniture Store manages to aid with the decision- making process in a way that will implement and evaluate the degree of feedback from the distributors and customers’ needs and wants. The focus on the budget and performance reports, offer an approach to the income statements that identify with the decision-making model for the procedures. The profit measures compare to the pricing decisions in a flex budget that is set for mid-grade and high-end production. The budget is set to cover the actual cost, although, the future performance reports need to focus on a budget. This production can be set on a high-end budget forecast, and a lower budget for the mid-grade productions. The demand and need has produced a mid-grade increase and a slight lower demand on the high-end units for production. The relevant costs and revenues will help to predict the future for Guillermo’s costs and revenues for the course of action taken in the performance reports. Competition in the market has made the profits a loss, pricing lowered, and the cost increased. The influence and expansion that the community and competition has presented in the performance and decision-making affects the budget to decisions that are so important the concepts and pricing will need more focus. The imperfect completion will offer a volume to the price and…