Accounting Case Study - Essay Example

Root Issue in the Case Study The root issue in the case study emerges from the use of a single reporting database, instead of a separate reporting database. RationalThe company has different types of departments i.e. coal cleaning plants and the extraction plants, meaning that each plant has a separate operational cost as well as goals. However, the essence of utilizing a single operational reporting database for all the plants or individual utility is not appropriate owing to the fact that it may not indicate individual performance of all the plants; thus reducing the capacity of the management to determine individual efficacy and efficiency of each plant.

RecommendationsOwing to the fact that the root issue facing the company is based on the use of a single report rather than a separate approach for its diverse activities, one of the recommendations towards solving the issues experienced by using a single report could be the use of separate reports for its activities i.e. a separate report for the extraction plant as well as a separate report for the coal cleaning report. This is an important strategy that would allow the company to identify incidences of inefficiency that may occur in each individual utility.

Additionally, the company may focus on a comparative analysis of the performance of each individual utility through the use of their individual performance reports. This is a crucial procedure that facilitates the identification of utilities that do not perform in accordance to the objectives of the company, thus creating a platform for corrective measures.