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Accounting in The Fashion Industry

   

Added on  2020-03-04

10 Pages1994 Words142 Views
Running head: ACCOUNTINGAccountingName of the UniversityName of the studentAuthors note

1ACCOUNTING Answer to question 1:Fashion companies have primary stakeholder and secondary stakeholders. The fashionindustry has to depend on other parties for the supply of raw materials and suppliers forms animportant part of their stakeholder group. Customers, employees, investors and community areother relevant stakeholders group of RTXM clothing company. Each single group instakeholders requires different information for judging the performance of organization. Customers forms an integral part of stakeholders and they are mostly concerned about thequality of products. They rely on the area of complains for gaining feedback about the products.The information requirement of customers can be satisfied with the involvement of customerteams that would assist them in gaining with specific and customized requirements aboutdifferent products and clothes. Suppliers are other important stakeholders who most inform thecompany about the type and quality of textile manufactured by them. Sometimes, it becomeshard for company to communicate the requirement of fabric quality to the suppliers. It isessential for Fashion Company to properly communicate the fabric quality and raw materials toassist them in shipping the materials (Edwards 2013). Community should be informed about the social responsible work that the organization isengaged with. They require the information about the area in which the company is supportingprojects for the wellbeing of society and their betterment. Information such as raising of fundsand steps taken by them in maintaining environmental sustainability helps in maintainingreputation and brand image of company. Investors are concerned about the stability andsustainability of company in relation to their competitors. Employees seek the information aboutthe efficacy about human resource department in dealing with their employees, their package,incentives, scope of outsourcing the employees, work life balance (Remy et al. 2016).

2ACCOUNTING Answer to question 2:The balanced scorecard is a framework of strategic management that helps in measuringthe performance of organization. It includes both non-financial and financial metrics formeasuring the performance. Four perspectives are involved in the balanced score card for measuring the performanceand this involves customer perspective, financial perspective, internal business perspectives andinnovation and learning perspectives. This particular measure is considered better performanceindicator compared to using only profit because it integrates both financial and non-financialindicators for assessing the operational process and performance of organization from top tobottom. The financial perspective is of particular interest to investors of RTXM and it depicts thestrategy, execution and its improvement at the bottom line improvement. The financialperspective of organization can be measured using the quarterly sales made that would lead toincrease in their operating income. Therefore, quarterly sales is one of the important metric formeasuring the financial performance, as this would ultimately help in increasing the return oninvestment and thereafter the market share.

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