Discussion 6 for accounting.docx

Discussion 6 for accounting.docx - To summarize the various...

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To summarize, the various events happened around: 1. Severe weather in Peru from were some of the raw material comes 2. Increase in fuel prices in some countries from where synthetic fabrics is imported 3. Reduction in the herd size of ranches from where leather is procured To measure the impact of these events, following points to be kept in mind: 1. How much is the composition of these raw materials in the final product 2. Do these raw materials have any alternate material replacement 3. What will happen if we don't use these raw materials (What % of products will fail to get into the market) 4. Do we have any alternate sources of these material. How much will be cost differential in procuring for those locations? Keeping all these points in view, following is the analysis of the situation: 1. Cost of production - The cost of production will surely see a big hit as all major components have seen unwanted events. Even though the incremental impact of fuel impact may be relatively small, but it has direct impact as any change in fuel prices is directly changing my landed cost. If
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  • Spring '14
  • Jirkovsky,DennisJ.
  • Marketing, raw material

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