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Running head: MANAGERIAL ACCOUNTING
1
Managerial Accounting Conceptual Model
Joseph A. Hutchins
Grand Canyon University: ACC-502
October 30, 2019

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MANAGERIAL ACCOUNTING
2
Executive Summary: Analyzing Assets
This is to provide the COO of Hewlett Packard (HPQ) a summary of a potential change and the
steps that would need to be taken in the decision-making process to affect that change.
Proposed Change
HPQ is currently a successful company. There is opportunity for improvement at HPQ.
To be more profitable and efficient, HPQ may focus on cost containment and saved time. These
efforts will provide continued profits in a timelier manner. It is proposed that a team be created
to focus and reduce the current inventory lifecycle of 46 days, as HPQ exceeds the industry
average of 25 days; this focus should aim to bring HPQ in line or exceed the competition.
Currently, Apple which has an average reported inventory turnover period of 9. A net savings on
this life cycle at the industry standard is 21 days and the more aggressive competitor standard
would save 37 days. If HPQ were to accomplish this, the operating cycle would be decreased to a
more efficient 41 days.
Information Needed
The HPQ team will access to the current inventory, product demand, planned
obsolescence/iteration/improvement, new product line and inventory lifecycle. The team will
need to flow process the current inventory lifecycle. The team will identify the current time
required for production and create a Gantt chart. The chart will be the current status. During this
mapping and information gathering phase, the team will perform a SWOT analysis of the current
inventory lifecycle.
Scope and Analysis
The HPQ team will focus on the outliers and high profit items of the inventory lifecycle
to ensure focus on driving profit and saving the time value of monies. The SWOT analysis will

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Running head: MANAGERIAL ACCOUNTING Managerial Accounting Conceptual Model Joseph A. Hutchins Grand Canyon University: ACC-502 October 30, 2019 1 MANAGERIAL ACCOUNTING 2 Executive Summary: Analyzing Assets This is to provide the COO of Hewlett Packard (HPQ) a summary of a potential change and the steps that would need to be taken in the decision-making process to affect that change. Proposed Change HPQ is currently a successful company. There is opportunity for improvement at HPQ. To be more profitable and efficient, HPQ may focus on cost containment and saved time. These efforts will provide continued profits in a timelier manner. It is proposed that a team be created to focus and reduce the current inventory lifecycle of 46 days, as HPQ exceeds the industry average of 25 days; this focus should aim to bring HPQ in line or exceed the competition. Currently, Apple which has an average reported inventory turnover period of 9. A net savings on this life cycle at the industry standard is 21 days and the more aggressive competitor standard would save 37 days. If HPQ were to accomplish this, the operating cycle would be decreased to a more efficient 41 days. Information Needed The ...
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