Case Study : Abc 's Corporate Controller

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ABC’s Corporate Controller Kimberly Beaudet ACC 206 Principles of Accounting II Instructor: William Blix 01 July 2016 Introduction This final paper is communicating the financial situation of the ABC Company. Within any organization there are various parts working together in order to reach a common goal. In the case of ABC Company, the company CEO wants to decide whether a new business interest’s project should be implemented and can this new endeavor be afforded and profitable. The ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles, the company is planning on making cedar dollhouses out of scrap shingles, ABC Company believes that it will be able to generate revenue…show more content…
Since goal of the ABC Company is to achieve a sales growth of more than 100%, it may have to except some risks. There aggressive way ahead is very risky from an entrepreneurial perspective. While implementing the planned expansion of production lines, the following factors should be carefully considered: 1) Customers anticipates a lot from the new product especially if the brand name behind the product already produces a great product. It may possibly happen that products are not what the customers were expecting. 2) ABC Company will be able to use much of its own resources, in the form of scrap cedar shingles, but another source may need to be found if scrap pieces do not meet the needs of the new production. 3) Loss of market share can be one of the consequences with the launch of new product. 4) Company will need to source skilled dollhouse builders to produce the desired result. 5) Its always necessary for the business to find right kind of people who can handle business operations and meet the technical requirements that is needed for the new product line. Thus getting right people for right work is a risk factor for the company. 6) People are always reluctant to accept change. Accepting a new product introduced in the market is also not very frequent. 7) A business is often impacted by the inflationary factors. This also results in fluctuations in prises as management usually
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