ACCT3032TuteSols74.pdf - 289 Award 1.00 point Lyon Toys...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
289. Award: 1.00 point Lyon Toys, Inc. (LTI) manufactures a variety of electronic toys for children aged 3 to 14 years. The company started as a Ma & Pa basement operation, and grew steadily over the last nine years. It now employs over 100 people and has sales revenue of over $250 million. Katie Burger, the CEO of LTI also recognizes that competition has increased during this period; therefore, future growth will not be easy. Burger recognizes that one of the areas of weakness is the accounting and costing system. Burger's maternal uncle, Martin, had maintained the accounts for the company. He meticulously kept track of all the invoices that were received, payments made, and painstakingly prepared crude annual reports. With Martin passing away at the age of 85, Burger decided to hire a professional cost management expert to keep track of the company's costs. She hired Molly Wright, who had just completed her CMA. After acquainting Wright with the company and its people, Burger decided to get down to business. She called Wright to her office to have a serious conversation about accounting and costing, in particular. Burger: Molly, I would like you to pay particular attention to developing an official costing system. Currently, we don't have one. I believe this should be your first priority because competition is rising and if we do not understand our costs, we might start losing business to our rivals. Wright: I understand your point very well, Ms. Burger. Burger: Call me Katie. Wright: Very well, Katie. I have a few ideas that I picked up from my CMA courses that I think are worth implementing. However, it looks like we need to start with the basics.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern