Business Report on Electronic Circuit Board Plc Essay

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BUSINESS REPORT ON ELECTRONIC CIRCUIT BOARD PLC

Introduction

Electronic Board Plc is an organization established by an electrical engineer, John Watsons in the early 1970s as a sole proprietorship venture. The main business of the company is the production of electronic circuit boards. The company later on through dint of hard-work, developed into a public limited liability company. It maintained remarkable business success which climaxed in 1990, when it recorded an appreciable sales margin of £26 million and a profit after tax of £1.9m, using staff strength of 200 employees. The good business records of this company truncated in 1992, when it started experiencing heavy dwindling fortunes by recording abysmal drop in total sales
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This is shown by the fact that their decisions support financing the procurement of modern technology that can improve the firm’s production quality.
(3) The availability of a management accountant in their employ can be utilized as an opportunity to remedy losses due to misguided capital expenditures.
(4) The company already has a name in the electronic board making industry. These four points of strengths and opportunities, if effectively guided by management accounting system, will improve the returns to capital invested.

MANAGEMENT ACCOUNTING: A PANACEA FOR
THE RESCUE OF THE ELECTRONIC BOARD PLC

According to Will S, Ray H, & Eric E.N. (2009), management accounting is a branch of accounting that is concerned with providing information to managers who direct and control the firm’s operations. Management directing function seeks to effectively use both the human and raw material wealth of a firm to achieve organizational set objectives on routine basis. Controlling function is the art of tele-guarding the activities of the organization to consistently fall in line with set objectives. Management accounting achieves this function through effective budgeting.

EFFECTIVE BUDGETING SYSTEM

Budget is a comprehensive business plan for procuring and appropriating a firm’s financial resources over a specified time period. One of the identified problems of the Electronic Board Plc is that

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