Danshui Plant recommand for managemnt accounting perspective Essay Example for Free

Danshui Plant recommand for managemnt accounting position EssayDanshui Plant No.2 is facing insufficient information for Wentao Chen, manager of Danshui Plant, to evaluate the performance of their production for the first-year quarter of their contract to assemble the Apple iPhone4. They were anxious as their target to produced 200,000 units of iPhone per calendar month was unachievable as they could only produce 180,000 of units per month. Wentao Chan had called Jianye ma to request a summary of monthly operations, unfortunately Bingqian Li was awkward with the report. In order to know what trulyly going on, Li wants to prepare the flexible budget to par the actual performance to the budget. Use of flexible budget allows the management to have a control and real time monitoring of business operations.This is because, it is prepared with the different line values for different sales projections. too that, it is become useful planning tools and help to react to the changes more(prenominal) efficiently. Since the company does not have seemly information about the shortage of production of iPhone, the company still need to consider the possible causes of the hassle. For examples, the problem may caused by the weaknesses of the mark that is used by the company to produce the iPhone. As we know originally this, the plant is used to produce the computer hardware, and now it is used to produce the iPhone.Here, we can see that the ability of the plant is unable to produce the iPhone. Besides, we know that the company need to produce more than 200,000 units of iPhone every month for the rest of 9 months repayables to the shortage of the plant to produce the desired quantity of iPhone that being set by the company target, they should upgrade the maintenance of the plant that suits to assemble the iPhone.Besides that, the company can outsource approximately of the part of the iPhone from other company so that they could focus on the assembling the proce ss only. By doinfg this, more projection could be assigned to assemble the iPhone and as a result, the step of production will be lower due to the reducing in labors and material cost. Indirectly, all the material cost in producing the split will be much lower as it will be taken by the outsource company.Apart from that, the ability or skills of labours needs to be enhanced. There is no point if the capacity of the plant can be increase to produces more parts but the labours still assemble the same amount of the iPhone. Therefore, as a solution, Danshui Plant need to held an speed and short training program that could enhance the skills of their labours in order to achieved the target. As we know that the program might consumed times, but the results will be better. More labor can be hire and let them to experience such program to perform better than before. The increasement in labor cost will be covered by the material cost that is reduced due to the outsource activity before.