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Finance and Accounting for MacLeish Nurseries - Essay Example

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The reporter states that MacLeish nurseries need to pursue a course of action that would ensure the company increase their turnover and increase the profit that it posts. This would facilitate the repayment of the loan and increase the earnings that shareholders can get for their capital…
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Finance and Accounting for MacLeish Nurseries
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"Finance and Accounting for MacLeish Nurseries"

Download file to see previous pages By decreasing the selling price, MacLeish will be in a position to increase the number of profits that it would report in the financial statements hence increase their ability to increase the amounts of their loans and be in a position to make the repayments. I, therefore, recommend that MacLeish increase their investment on advertisement and lower their prices to benefit from the elastic demand nature of their products.
Bedford property management just like any other company must undertake variance analysis as a way of managing their costs and ensuring efficiency. In the calculation below, it is evident that the company has recorded adverse variance in all areas and the management must, therefore, move with speed to control to take corrective actions.
In the case of labor cost variance, Ms. Kim should ensure that close supervision is conducted to eradicate the inefficiency. At the same time, Kim has to reduce the rate per hour rewarded to the workers. The variances with regard to the number of respondents must also be corrected to increase the turnover. Management has to increase their marketing strategies to ensure the number of customers served increase to remove the adverse variance. The rates charged to the clients should also be as per the standards to eliminate the rate variance. Finally, the management has to control their overhead costs by reducing the expenses like rent, maintenance, and insurance to eliminate over expenditure. In conclusion, variance analysis should be carefully done to ensure profitability and success. ...Download file to see next pagesRead More
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