Master Budget
Case Title: Milliones Manufacturing Company
I. Point of View The president
II. Time Frame Three months
III. Statement of the problem There is a 5 day lag between the time the company shipped an order and the time invoice of the order went into the mail. And this lag results for the delay of the costumer’s payments, thus slowing down collection of receivables.
IV. Statement of objective The objective is to clear the bottleneck that result to unproductive collection of receivables. The company specifically the invoice preparation department must speed up the mailing of invoice to the cost mailing of invoice to the customer upon delivery. Be able to send invoices near to the time orders.
V. Areas of consideration
(Strength)
The company will easily solve the problem is they will act quick because the company is still not going down.
After knowing the problem, the president took a sharp look at he situation so he came up with a great solution.
(Weakness)
The customers keep on complaining to the company that’s why the company maybe pressure and because there are many complaints they don’t know which of these to start with. There is an unorganized system of doing things in the same company.
IV. Alternative courses of action
ACA I: Issuing of contracts The company may issue contracts to the customers upon mailing of invoices. Written in the contract is the maturity date of the obligation and the price. This contract may be like a promissory note.
(Advantages)
Customers are intended to pay on maturity dates of invoices. The customers cannot complain about their payment, because they have the agreement that they need to pay on their obligation on that given date. If the customers did not pay their obligations, the company can file a case against their costumer.
(Disadvantages)
Invoices must be ready as ease, meaning that these must made quick and as fast to deliver with the orders. It will be quite
I. Point of View The president
II. Time Frame Three months
III. Statement of the problem There is a 5 day lag between the time the company shipped an order and the time invoice of the order went into the mail. And this lag results for the delay of the costumer’s payments, thus slowing down collection of receivables.
IV. Statement of objective The objective is to clear the bottleneck that result to unproductive collection of receivables. The company specifically the invoice preparation department must speed up the mailing of invoice to the cost mailing of invoice to the customer upon delivery. Be able to send invoices near to the time orders.
V. Areas of consideration
(Strength)
The company will easily solve the problem is they will act quick because the company is still not going down.
After knowing the problem, the president took a sharp look at he situation so he came up with a great solution.
(Weakness)
The customers keep on complaining to the company that’s why the company maybe pressure and because there are many complaints they don’t know which of these to start with. There is an unorganized system of doing things in the same company.
IV. Alternative courses of action
ACA I: Issuing of contracts The company may issue contracts to the customers upon mailing of invoices. Written in the contract is the maturity date of the obligation and the price. This contract may be like a promissory note.
(Advantages)
Customers are intended to pay on maturity dates of invoices. The customers cannot complain about their payment, because they have the agreement that they need to pay on their obligation on that given date. If the customers did not pay their obligations, the company can file a case against their costumer.
(Disadvantages)
Invoices must be ready as ease, meaning that these must made quick and as fast to deliver with the orders. It will be quite