Guillermo Furniture Store Analysis

Guillermo Furniture Store Analysis Team B date Acc/561 Guillermo Furniture Store Analysis Guillermo Navallez, as an owner and manager of a specialty furniture retentiveness in Sonora, Mexico, has needed to explore many factors to keeping his craft profitably operating. With the economy changing around him Guillermo has explored in the sometime(prenominal) six weeks his budtake, performance reports, financial statement compend, sales forecasts, and near recently the stores cost relationships and behaviors. The following analysis lead discuss the importance of cost relationship behaviors and how that affects Guillermos management decisions. It will also cover the current prudence Control System, the current break even-analysis, and finally the current: expire on investment, residual income, and economic value added. Together these tools will help Guillermo properly make the right decisions for his line of work as well as contribute to future business model. terms Relationship Behaviors Managers decisions and prerogative is affected by cost relationship and behaviors in several ways. Simply to call cost behavior, managers can estimate the companys future cost at different levels. This is known as forecasting.

in any case accurately forecast, first Guillermo Furniture Store must coif the companys variable and fixed cost as well as the goals that he wants to obtain for the company. Guillermo needs to root whether or not to operate off his current business model or after the analysis if he should limiting the current business model provides for new policies implicated. Variable cost being a cost that changes in proportion to a change in a companys action mechanism or business (investopedia.com). Fixed be are those cost that remain constant, regardless of any change in a companys activity (investopedia.com). These costs would be costs such as the mortgage payment on the office due every month. To predict cost behavior, Guillermo... If you want to get a full essay, order it on our website: Ordercustompaper.com

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