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acc_561_week_1__dq_4.docx

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Running head: GUILLERMO FURNITURE STORE
Guillermo Furniture Store
YOUR NAME(S)
ACC/561
DATE
PROFESSOR’S NAME

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GUILLERMO FURNITURE STORE 2
Guillermo Furniture Store Paper
Over the course of the last six weeks, we have been able to take the Guillermo Furniture
Store scenario and dissect its strategies to compare it to the course objectives. In doing this, we
have learned different financial approaches that Guillermo can take to run the company more
efficiently. In particularly, we have studied ways Guillermo Furniture Store can cut its costs,
increase their market share, and determine how they can adjust its current cost behaviors to make
the company more competitive. We will take a look at what financial decisions Guillermo
Furniture Store can make to become more profitable and secure a better position in its industry.
Cost Relationships/Behaviors and Decision-Making for Managers
Now that Guillermo is faced with obstacles that he previously did not have to deal with
such as competitors and rising labor costs it is now extremely important for him to set up and
utilize budgets to assist him in his business decision making. Guillermo needs to sit down and
create budgets for key items such as revenues, costs of goods sold and expenses to make sure that
he is running as efficiently as possible. More now than ever Guillermo needs to compare his
actual activity to his budgeted activity to ensure that he is staying on target for his key items. The
reviewing of financial reports that are comparing his actual compared to his budget and in depth
budget variance analysis could be vital to the success or failure of Guillermo’s business. It
would be extremely beneficial for Guillermo to set up budgets that are realistic so that he can get
an accurate measurement of the overall success of his company. It appears that in the past
Guillermo ran his business as a hobby that paid the bills; however, now he needs to shift that
focus to running a profitable company. Setting up of budgets and budget analysis can be a tool
for Guillermo to use as his company continues to grow.

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Running head: GUILLERMO FURNITURE STORE Guillermo Furniture Store YOUR NAME(S) ACC/561 DATE PROFESSOR’S NAME Guillermo Furniture Store Paper Over the course of the last six weeks, we have been able to take the Guillermo Furniture Store scenario and dissect its strategies to compare it to the course objectives. In doing this, we have learned different financial approaches that Guillermo can take to run the company more efficiently. In particularly, we have studied ways Guillermo Furniture Store can cut its costs, increase their market share, and determine how they can adjust its current cost behaviors to make the company more competitive. We will take a look at what financial decisions Guillermo Furniture Store can make to become more profitable and secure a better position in its industry. Cost Relationships/Behaviors and Decision-Making for Managers Now that Guillermo is faced with obstacles that he previously did not have to deal with such as competitors and rising labor costs it is now extremely important for him to set up and utilize budgets to assist him in his business decision making. Guillermo needs to sit down and create budgets for key items such as revenues, costs of goods sold and expenses to make sure that he is running as efficiently as possible. More now than ever Guillermo needs to compare his actual activity to his budgeted activity to ensure that he is staying on target for his key items. The reviewing of financial reports that are comp ...
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