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Assignment - Managerial Accounting Conceptual Model
Task - Write memo to the chief operating officer (COO) of the company. Summarize the proposed change the company is considering. Discuss the specific information that must be collected to perform the analysis on the proposed change. Discuss the scope of the analysis and what parameters will be used to determine whether the proposed change should be made.
Solution -
The Memo
Chief Operating Officer
Southwest Airline Company
Sub: - Managerial Accounting Conceptual Model
Date: - 05 - 08 - 2019
The Proposed change the company is considering is on account with the fact that the company must manage and take a strong action on account with the income element as the profits has decreased on a major level which make on account with the fact that as to how the income needs to be worked out and how the proceeds need to be managed and progressed.
The other proposed action is to provide a appropriate usage of the cash flow activities which must be segmented and accounted in a right direction.To ensure that the company regains on the profit margins it is essential that the company works on its sale targets and sales volume. It also plans proper budget in terms with the cash flow budget and analysis and also provides other budgets prospects and allows a corrective analysis perspective to function accordingly (Williams, & Dobelman, 2017).
According, to the two main proposed changes it is evident that the sources required is proper and corrective planning which leads to provide better results and a much more dominant position. It must assume the position where the resultant may provide a desirable outcome which are based on short term and the long-term position(Williams, & Dobelman, 2017). Thereby, promoting a much stable and a long-lasting financial position and growth and also help in planning the cash availability and its application for a longer prosperity and stable goodwill basis. Thus, as per provide analysis it is necessary that the things must be mapped in a corrective manner.
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