Management_Accounting_Case_1_Winter_2010

Management_Accounting_Case_1_Winter_2010 - MANAGEMENT 122...

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MANAGEMENT 122 WINTER 2010 M ANAGEMENT A CCOUNTING D ANNY S. L ITT CASE ASSIGNMENT 1 Page | 1 Max Williams was worried about his company, Bullwinkle Bottling’s recent financial performance. Bullwinkle Bottling showed declining profits over the past several years despite an increase in revenues. With profits declining and revenues increasing, Williams knew there must be a problem with costs. Max sent an e-mail to his executive team under the subject heading, “How do we get Bullwinkle Bottling back on track?” Meeting in Max’s spacious office, the team began brainstorming solutions to the declining profits problem. A summary of the executive team’s comments were: Some members of the team wanted to add products These were the marketing team members Some wanted to fire the least efficient workers These were finance and accounting team members Some people want to install a new computer system It should be obvious who team these member were from Max listened patiently. When all participants had made their cases, Max said, “We made money when we were a smaller, simpler company. We have grown, added new product lines and added new products to old product lines. Now we are going downhill. What’s wrong with this picture?” Max continued, “Here, look at this report. This is last month’s report on the cola bottling line. What do you see here?” He handed copies of the following report to the team members
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Management_Accounting_Case_1_Winter_2010 - MANAGEMENT 122...

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