Bates Boatyard

1423 Words Apr 8th, 2013 6 Pages
Table of Contents Facts | ………………………………………………………………………………… | 2 | Analysis | ………………………………………………………………………………… | 2 | Conclusions References | …………………………………………………………………………………………………………………………………………………………………… | 56 |

Issues 1. a. What would you tell Bates concerning her accounting needs, emphasizing the uses of the accounting information for all stakeholders within and without the business? 2. a. The boatyard operates how many businesses? b. What are the accounting information needs for managing these businesses?
Facts
Sarah Bates a returning Navy civilian decides to buy a business with the money she has saved along all this time. Bates buys a small boatyard in a town on the coast of Maine where she had spent
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2.
a. The Boatyard operates 3 different businesses. The first one is a large shed for winter storage of boats. There is great demand for space since it is a very suitable space for boats. Also there is more space for storage and haul of boats in on equipment on the front. The second one is a large sized work shed containing woodworking tools and space to construct about six boats up to 40 feet in length at one time. This space also it could be used for painting and repair shop. Lastly a good size wharf and float, store for the sale of marine hardware, supplies, and gasoline pumps, also a great spot for people who surfs to be around.
b. One of the accounting information that Bates needs in order to manage his business, would be to calculate certain business functions costs. Bates needs to determine how much labor is used and the amount of materials used. Since managerial accounting helps decide the amount of time spent on each customer to maximize profit. Cost Objects need to be identified for measuring and assigning costs. For Bates there are different cost objects involved, which are; a large shed for winter storage, empty land for outdoor storage, and a yard at the same time as painting and repairing department. Another cost objects include; work shed for construction of boats, hardware and supplies store, gasoline pump, wharf and

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