Danshui Plant recommand for managemnt accounting perspective Essay Example for Free

Danshui Plant recommand for managemnt accounting perspective EssayDanshui Plant No.2 is facing insufficient information for Wentao Chen, manager of Danshui Plant, to evaluate the performance of their mathematical product for the first quarter of their contract to frame the Apple iPhone4. They were anxious as their target to produced 200,000 units of iPhone per month was unachievable as they could only produce 180,000 of units per month. Wentao Chan had called Jianye ma to need a summary of monthly operations, unfortunately Bingqian Li was uncomfortable with the report. In order to know what really going on, Li wants to prepare the flexible reckon to compare the actual performance to the budget. Use of flexible budget allows the management to yield a control and real time monitoring of business operations.This is because, it is inclined(p) with the different line values for different sales projections. Besides that, it is become useful planning tools and help to react to th e changes more efficiently. Since the company does not have enough information about the shortage of production of iPhone, the company still need to consider the possible causes of the problem. For examples, the problem may ca employ by the weaknesses of the full treatment that is used by the company to produce the iPhone. As we know before this, the plant is used to produce the computer hardware, and now it is used to produce the iPhone.Here, we can foregather that the capacity 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 dues 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 source some of the part of the iPhone from other company so that they could focus on the assembling the process only . By doinfg this, more labor could be assigned to assemble the iPhone and as a result, the amount of production will be lower due to the reducing in labors and material cost. Indirectly, all the material cost in producing the parts will be much lower as it will be taken by the outsource company.Apart from that, the ability or skills of labours inescapably 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 aforementioned(prenominal) amount of the iPhone. Therefore, as a solution, Danshui Plant need to held an speed and short training course 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 offend. 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.