Management Accounting: Monthly Control Report and Comparison of Online Shop Options
VerifiedAdded on 2023/06/07
|12
|3292
|135
AI Summary
This report covers the monthly control report of Amana Ltd. and a comparison of two options for setting up an online shop. It includes recommendations for improvement and cost-benefit analysis. The report suggests that setting up an own online shop is better than selling on Amazon. The benefits of online retailing are discussed, including customer data insights, reduction in overhead expenses, personalized communication with customers, and complete business autonomy. The report recommends that Amana Ltd. should conduct training sessions for employees, prepare a flexible budget, and come in forward contracts with suppliers. Course code and college/university not mentioned.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Management Accounting
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
(i) Presenting preparation of monthly control report covering original budget, flexed budget,
variances......................................................................................................................................3
(ii) Report on the performance of Amana's company during the year 2020 in accordance to the
control report presented above.....................................................................................................4
(iii) Recommendations to Amana’s CEO on area of development.............................................6
PART B...........................................................................................................................................7
Comparison of two option i.e., setting up own online shop and sell on Amazon using cost
analysis benefit analysis method.................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
1
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
(i) Presenting preparation of monthly control report covering original budget, flexed budget,
variances......................................................................................................................................3
(ii) Report on the performance of Amana's company during the year 2020 in accordance to the
control report presented above.....................................................................................................4
(iii) Recommendations to Amana’s CEO on area of development.............................................6
PART B...........................................................................................................................................7
Comparison of two option i.e., setting up own online shop and sell on Amazon using cost
analysis benefit analysis method.................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
1
INTRODUCTION
Management accounting is a process of identifying, organizing, analysing, interpreting and
presenting the financial information of company to the manager so that they can use it for the
purpose of achieving business goals (Rashid, Ali and Hossain, 2020). The present report is based
on Amana Ltd. A family owned tourist business located in England, UK. The report will prepare
the monthly control report which present information regarding original budget, flexed budget
and variance. Further, the report will also produce the report covering the comment on
performance of Amana Ltd during the year 2020 using monthly control report. Further, the report
will recommend the appropriate strategies to the CEO of Amana Ltd on areas of improvement.
Moreover, the two option such as setting own online shop or sell on Amazon will be compared
using the cost analysis. Lastly, proper justification will be provided in the current report
regarding the decision recommended to Amana Ltd.
PART A
(i) Presenting preparation of monthly control report covering original budget, flexed budget,
variances
Particulars Original
Budget (£)
Flexed
Budget (£)
Actual (£) Variance (£)
(Actual budget
– Flexed
budget)
Favourable
or Adverse
No. of units
sold (A)
100000 80000 80000
Selling price
per unit (B)
25 25 20
Sales Revenue
(C) = A * B
1000000 * 25
= 2500000
80000 * 25 =
2000000
80000 * 20 =
1600000
1600000 –
2000000 =
-400000
Adverse
Less Variable
Costs:
Materials 100000 * 2.50
= 250000
80000 * 2.50
= 200000
80000 * 3.5 =
280000
280000 – Adverse
2
Management accounting is a process of identifying, organizing, analysing, interpreting and
presenting the financial information of company to the manager so that they can use it for the
purpose of achieving business goals (Rashid, Ali and Hossain, 2020). The present report is based
on Amana Ltd. A family owned tourist business located in England, UK. The report will prepare
the monthly control report which present information regarding original budget, flexed budget
and variance. Further, the report will also produce the report covering the comment on
performance of Amana Ltd during the year 2020 using monthly control report. Further, the report
will recommend the appropriate strategies to the CEO of Amana Ltd on areas of improvement.
Moreover, the two option such as setting own online shop or sell on Amazon will be compared
using the cost analysis. Lastly, proper justification will be provided in the current report
regarding the decision recommended to Amana Ltd.
PART A
(i) Presenting preparation of monthly control report covering original budget, flexed budget,
variances
Particulars Original
Budget (£)
Flexed
Budget (£)
Actual (£) Variance (£)
(Actual budget
– Flexed
budget)
Favourable
or Adverse
No. of units
sold (A)
100000 80000 80000
Selling price
per unit (B)
25 25 20
Sales Revenue
(C) = A * B
1000000 * 25
= 2500000
80000 * 25 =
2000000
80000 * 20 =
1600000
1600000 –
2000000 =
-400000
Adverse
Less Variable
Costs:
Materials 100000 * 2.50
= 250000
80000 * 2.50
= 200000
80000 * 3.5 =
280000
280000 – Adverse
2
(D) 200000 =
80000
Labour
(E)
100000 * 4 =
400000
80000 * 4 =
320000
80000 * 5.5 =
440000
440000 -
320000 =
120000
Adverse
Overheads
(F)
100000 * 1.50
= 150000
80000 * 1.50
= 120000
80000 * 1.5 =
120000
120000 –
120000 = 0
-
Contribution
(G) = C – D –
E - F
100000 * 17 =
1700000
80000 * 17 =
1360000
80000 * 9.5 =
760000
760000 –
1360000 =
-600000
Adverse
Less Fixed
overheads (H)
Warehouse
rental (I)
200000 200000 170000 170000 –
200000 =
-30000
Favourable
Insurance 100000 100000 100000 100000 –
100000 = 0
-
Fulltime
warehouse
supervisor
salary
50000 50000 35000 35000 – 50000
= -15000
Favourable
Profit 1350000 1010000 455000 455000 –
1010000 =
-555000
Adverse
(ii) Report on the performance of Amana's company during the year 2020 in accordance to the
control report presented above.
As per the monthly control report that is prepared or presented above it is particularly
identified that the revenue statement of the company that has been calculated is particularly
unfavourable in accordance to the results that the company in particular was expecting and the
results that the company actually got through the strategies or techniques that were implemented
3
80000
Labour
(E)
100000 * 4 =
400000
80000 * 4 =
320000
80000 * 5.5 =
440000
440000 -
320000 =
120000
Adverse
Overheads
(F)
100000 * 1.50
= 150000
80000 * 1.50
= 120000
80000 * 1.5 =
120000
120000 –
120000 = 0
-
Contribution
(G) = C – D –
E - F
100000 * 17 =
1700000
80000 * 17 =
1360000
80000 * 9.5 =
760000
760000 –
1360000 =
-600000
Adverse
Less Fixed
overheads (H)
Warehouse
rental (I)
200000 200000 170000 170000 –
200000 =
-30000
Favourable
Insurance 100000 100000 100000 100000 –
100000 = 0
-
Fulltime
warehouse
supervisor
salary
50000 50000 35000 35000 – 50000
= -15000
Favourable
Profit 1350000 1010000 455000 455000 –
1010000 =
-555000
Adverse
(ii) Report on the performance of Amana's company during the year 2020 in accordance to the
control report presented above.
As per the monthly control report that is prepared or presented above it is particularly
identified that the revenue statement of the company that has been calculated is particularly
unfavourable in accordance to the results that the company in particular was expecting and the
results that the company actually got through the strategies or techniques that were implemented
3
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
by the company in particular (Phillips., 2021). It is evaluated that before the Covid- 19 hit the
company was earning a good amount of revenue but due to major uncertainty that occurred in the
economy due to the pandemic in particular many challenges have been imposed in the working
and the performance of the company in terms of revenue generation in particular. The original
budget of the company that was decided was £2500000, the flexed budget of the company was
£2000000 and the actual budget of the company is stated to be £1600000. Which makes the total
variance value negative which mainly states that the performance of the company was not as per
the requirement and the planning done, which means it was not up to the mark in particular. As
all the conditions are considered to be unfavourable for the company, it is required that the
company makes modifications in the volumes, processes and prices. Also, the company can
make the conditions favourable by enhancing the levels of consumer demands through changing
the product and enhancing the budget for marketing.
For the direct materials, which basically refers to the materials that are being bought by
the company in a particular duration of time (Drury., 2018). This is done to fulfil the needs of the
production budget. For this company specifically the data tat is evaluated is unfavourable
because of the improper research of the market and also other factors have imposed major
challenges for the company which is not allowing the company to attain its desired objective.
£250000 was the original budget for the direct materials and the flexed budget was £200000. The
result that the company desired was not achieved. Hence, the company needs to set up strategies
in correct order to sustain its position in the market.
Furthermore, the analysis particularly indicate information or data regarding the direct
labour cost which is identified to be unfavourable too. Which basically specifies that the flexed
direct labour cost is less than that of the actual labour cost in particular (Hansen. Mowen. and
Heitger., 2021). This basically indicates to the fact that the performance of the company in the
year of 2020 has been poor in regard to the labour cost controlling and management. Amana Ltd.
Has particularly failed to manage as well as reduce the cost of the labour that was incurred by the
company in 2020. The company requires to proper market evaluation and research for the
purpose of adopting the most suitable strategies to enhance its performance. But in the case of
direct overhead costs no variance has been identified in the control report prepared above. This
indicates good organizational performance, as the company has controlled the ratio of
overspending on the overheads. Still, the contribution of Amana Ltd. Is considered to be
4
company was earning a good amount of revenue but due to major uncertainty that occurred in the
economy due to the pandemic in particular many challenges have been imposed in the working
and the performance of the company in terms of revenue generation in particular. The original
budget of the company that was decided was £2500000, the flexed budget of the company was
£2000000 and the actual budget of the company is stated to be £1600000. Which makes the total
variance value negative which mainly states that the performance of the company was not as per
the requirement and the planning done, which means it was not up to the mark in particular. As
all the conditions are considered to be unfavourable for the company, it is required that the
company makes modifications in the volumes, processes and prices. Also, the company can
make the conditions favourable by enhancing the levels of consumer demands through changing
the product and enhancing the budget for marketing.
For the direct materials, which basically refers to the materials that are being bought by
the company in a particular duration of time (Drury., 2018). This is done to fulfil the needs of the
production budget. For this company specifically the data tat is evaluated is unfavourable
because of the improper research of the market and also other factors have imposed major
challenges for the company which is not allowing the company to attain its desired objective.
£250000 was the original budget for the direct materials and the flexed budget was £200000. The
result that the company desired was not achieved. Hence, the company needs to set up strategies
in correct order to sustain its position in the market.
Furthermore, the analysis particularly indicate information or data regarding the direct
labour cost which is identified to be unfavourable too. Which basically specifies that the flexed
direct labour cost is less than that of the actual labour cost in particular (Hansen. Mowen. and
Heitger., 2021). This basically indicates to the fact that the performance of the company in the
year of 2020 has been poor in regard to the labour cost controlling and management. Amana Ltd.
Has particularly failed to manage as well as reduce the cost of the labour that was incurred by the
company in 2020. The company requires to proper market evaluation and research for the
purpose of adopting the most suitable strategies to enhance its performance. But in the case of
direct overhead costs no variance has been identified in the control report prepared above. This
indicates good organizational performance, as the company has controlled the ratio of
overspending on the overheads. Still, the contribution of Amana Ltd. Is considered to be
4
unfavourable. The major requirement of the company is to focus on the control system that is
internal so that the company is able to meet desired standards of budget in particular.
Through the control report of Amana Ltd. Of the year 2020, it has also been evaluated
that the warehouse rental overheads of the company are favourable. Which means that the actual
warehouse rental overheads are lower than that of the flexed warehouse rental overheads (Unnu.
and Pazour., 2019). This is an indication towards the good performance of the company
throughout 2020 specifically. The reason behind this might be the constant nature of the fixed
expenses that are warehouse rental overheads. Which allows a chance for the company, Amana
Ltd. To adopt the most suitable strategies for the reduction of these costs in particular. This also
supports the company in management of the total profitability of the company. Insurance
expenses are also fixed expenses that are required to be paid by the company every year for the
protection of the profit and the stocks of the company from any harm caused naturally.
The key reason due to which variance is caused in Amana Ltd. Is due to the Covid-19.
The major uncertainties have occurred due to the pandemic. And due to which the company has
faced major challenges in the present and in the prediction and evaluation of the future as well.
(iii) Recommendations to Amana’s CEO on area of development
The major requirement for the company is to enhance its revenue generation in particular.
And the development as well as management of the budget prepared (Oyadomari. And et.al.,
2018). The budget needs to be efficiently prepared by keeping in mind all the company
requirements. For this the company, Amana Ltd. Needs to conduct training sessions or programs
for the employees of the company to enhance their knowledge regarding the market and also
they will develop skills to further work more efficiently, proficiently and effectively as well. This
will help in the enhancement of new as well as the existing employees of the company.
Next, the company should prepare a flexible budget which can be changed as per the
requirements of the company and the continuously changing market conditions or situations.
And not prepare a static budget which can not be changed in accordance to the inconsistent
demands and requirements. This will also allow the company to recognize all the opportunities
or threats that are present in the external environment as the market research will have to be done
from time to time, to change the budgetary requirements.
5
internal so that the company is able to meet desired standards of budget in particular.
Through the control report of Amana Ltd. Of the year 2020, it has also been evaluated
that the warehouse rental overheads of the company are favourable. Which means that the actual
warehouse rental overheads are lower than that of the flexed warehouse rental overheads (Unnu.
and Pazour., 2019). This is an indication towards the good performance of the company
throughout 2020 specifically. The reason behind this might be the constant nature of the fixed
expenses that are warehouse rental overheads. Which allows a chance for the company, Amana
Ltd. To adopt the most suitable strategies for the reduction of these costs in particular. This also
supports the company in management of the total profitability of the company. Insurance
expenses are also fixed expenses that are required to be paid by the company every year for the
protection of the profit and the stocks of the company from any harm caused naturally.
The key reason due to which variance is caused in Amana Ltd. Is due to the Covid-19.
The major uncertainties have occurred due to the pandemic. And due to which the company has
faced major challenges in the present and in the prediction and evaluation of the future as well.
(iii) Recommendations to Amana’s CEO on area of development
The major requirement for the company is to enhance its revenue generation in particular.
And the development as well as management of the budget prepared (Oyadomari. And et.al.,
2018). The budget needs to be efficiently prepared by keeping in mind all the company
requirements. For this the company, Amana Ltd. Needs to conduct training sessions or programs
for the employees of the company to enhance their knowledge regarding the market and also
they will develop skills to further work more efficiently, proficiently and effectively as well. This
will help in the enhancement of new as well as the existing employees of the company.
Next, the company should prepare a flexible budget which can be changed as per the
requirements of the company and the continuously changing market conditions or situations.
And not prepare a static budget which can not be changed in accordance to the inconsistent
demands and requirements. This will also allow the company to recognize all the opportunities
or threats that are present in the external environment as the market research will have to be done
from time to time, to change the budgetary requirements.
5
Lastly, the company should come in forward contracts with the suppliers. To make the
process more effective and also cost- efficient. Even due to change in market prices of the
supplies the company will have to pay the same amount to the supplier.
PART B
Comparison of two option i.e., setting up own online shop and sell on Amazon using cost
analysis benefit analysis method
Cost benefit analysis is one of the best method through which two or more options are easily
analysed and compared by the cost the company incurring and the benefit they will receive in
return.
Option 1: Own online shop setting
Particulars Amount in £
No of units will be sold by company
(Guaranteed)
£2000000
(100000 * £20)
Less: Relevant costs associated with option
setting up own online shop:
Cost of setting up delivery network -150000
Cost of upgrading current website to handle
large volume of sales
-50000
Salary of fulltime programmer -35000
Profit generate from setting up own online
shop
1765000
Option 2: Sell on Amazon
Particulars Amount in £
Guaranteed sales of 65000 units 1300000
(650000 * 20)
Less: Relevant cost associated with option
sell on Amazon:
Amazon fulfilment fees -50000
Profit generate from sell on Amazon option 1250000
6
process more effective and also cost- efficient. Even due to change in market prices of the
supplies the company will have to pay the same amount to the supplier.
PART B
Comparison of two option i.e., setting up own online shop and sell on Amazon using cost
analysis benefit analysis method
Cost benefit analysis is one of the best method through which two or more options are easily
analysed and compared by the cost the company incurring and the benefit they will receive in
return.
Option 1: Own online shop setting
Particulars Amount in £
No of units will be sold by company
(Guaranteed)
£2000000
(100000 * £20)
Less: Relevant costs associated with option
setting up own online shop:
Cost of setting up delivery network -150000
Cost of upgrading current website to handle
large volume of sales
-50000
Salary of fulltime programmer -35000
Profit generate from setting up own online
shop
1765000
Option 2: Sell on Amazon
Particulars Amount in £
Guaranteed sales of 65000 units 1300000
(650000 * 20)
Less: Relevant cost associated with option
sell on Amazon:
Amazon fulfilment fees -50000
Profit generate from sell on Amazon option 1250000
6
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
The decision of Amana to go online is best, as in the present world, people are referring
more online platforms for their purchase decision. The customer checks websites, social media
reviews as well as online shopping channel to order products. It is because through online they
get their products more easily and quickly at their doorstep. Further, on the basis of the above
comparison between two option using cost benefit analysis, it is identified that selection option 1
of setting own online shop is best for Amana Ltd. It is because the profit Amana will generate
from this option is higher (1765000) than the profit they will generate from the sell on Amazon
online shopping channel (1250000) (AlKhajeh and Khalid, 2018). Also, if the company would
opt for second option, then they will generate guaranteed sales of 65000 units while in the case
of first option, Amana will generate guaranteed sales of 100000 units. However, the cost of
setting own online shop is high which make this process more time consuming and expensive.
The reason behind the recommended option of setting own online shop to move online
for Amana Ltd are as follows:
Benefits of online retailing or online shop:
Customer data insights: This is one of the major reason behind setting own online shop
rather than selling products on Amazon. It is because if Amana Ltd set up their own online
shopping channel or website than they able to generate more sales. It is because company have
the full access to customer’s information such as email, purchase history, reviews, feedback etc.
This helps them to analyse the trends and demand of customer (Chen, Liu and Li, 2019).
Reduction in overhead expenses: With the help of online shopping channel or website,
the need of opening expensive retail premises will automatically reduce. The impact of which
more profit can be generating by the Amana Ltd (Baumgart, 2020). The increased overhead cost
of the company will ultimately affect the overall profitability and liquidity performance of
company. Hence, having own online store will ultimately lead to reduction in overhead cost.
Personalised communication with customer: This is one of the benefit which proves that
with the help of own online stores or shop, the management of Amana Ltd able to communicate
with the customer personally. The personalized communication with the customers helps the
company to analyse the customer experience, demand as well as expectations.
7
more online platforms for their purchase decision. The customer checks websites, social media
reviews as well as online shopping channel to order products. It is because through online they
get their products more easily and quickly at their doorstep. Further, on the basis of the above
comparison between two option using cost benefit analysis, it is identified that selection option 1
of setting own online shop is best for Amana Ltd. It is because the profit Amana will generate
from this option is higher (1765000) than the profit they will generate from the sell on Amazon
online shopping channel (1250000) (AlKhajeh and Khalid, 2018). Also, if the company would
opt for second option, then they will generate guaranteed sales of 65000 units while in the case
of first option, Amana will generate guaranteed sales of 100000 units. However, the cost of
setting own online shop is high which make this process more time consuming and expensive.
The reason behind the recommended option of setting own online shop to move online
for Amana Ltd are as follows:
Benefits of online retailing or online shop:
Customer data insights: This is one of the major reason behind setting own online shop
rather than selling products on Amazon. It is because if Amana Ltd set up their own online
shopping channel or website than they able to generate more sales. It is because company have
the full access to customer’s information such as email, purchase history, reviews, feedback etc.
This helps them to analyse the trends and demand of customer (Chen, Liu and Li, 2019).
Reduction in overhead expenses: With the help of online shopping channel or website,
the need of opening expensive retail premises will automatically reduce. The impact of which
more profit can be generating by the Amana Ltd (Baumgart, 2020). The increased overhead cost
of the company will ultimately affect the overall profitability and liquidity performance of
company. Hence, having own online store will ultimately lead to reduction in overhead cost.
Personalised communication with customer: This is one of the benefit which proves that
with the help of own online stores or shop, the management of Amana Ltd able to communicate
with the customer personally. The personalized communication with the customers helps the
company to analyse the customer experience, demand as well as expectations.
7
Keeping 100% of sales revenue: This is also one of the advantage for Amana Ltd for
having own online shop. It means whatever sales the company will made through online store
will generate 100% revenue for Amana Ltd instead of splitting it with the third parties. It is best
way to grow business through direct sales channel as the company need not to pay commission
to intermediary which is possible in case of sale on Amazon.
Complete business autonomy: On own online stores, Amana Ltd will able to get
complete business autonomy. The impact of which company can set their own business rules as
well as produce best outcome for the company. Hence, it is recommended to Amana Ltd that
they should opt for setting up own online store with the aim to go online.
Drawbacks of own online store:
Site crash: At the time when site of Amana Ltd crashes than the customer unable to place
order and buy goods. This leads to reduction in sales revenue during site crash.
Ecommerce is highly competitive: The competition level in e-commerce sector is high
which create difficulty for new firms to exist and get stability in this market (Išoraitė and
Miniotienė, 2018).
Customer can be impatient: It is not possible that all the customer has patience regarding
their order but sometime many customers became impatient. At that time, it became difficult for
Amana Ltd to keep customer motivated and positive during late shipping time.
Benefits of sell on Amazon:
Quick trust building: This factor indicates that if Amana opt for sell on Amazon option,
then they able to build quick trust of customer. It is because buyers easily trust the seller who sell
them products through reputable channel such as Amazon. This benefit is not easily accessible in
case of own online store.
Automatic credibility as a seller: This is also one of the major disadvantage of selling
through other online shopping channel to Amana Ltd. In this way, it can be said that Amana will
able to get automatic credibility as a seller.
More traffic during initial stage: From the initial stage only, Amana Ltd will get more
traffic from the customer all over the world if they sell their products on Amazon. It is because
this app is highly used by people all over the world (Davenport, 2018).
8
having own online shop. It means whatever sales the company will made through online store
will generate 100% revenue for Amana Ltd instead of splitting it with the third parties. It is best
way to grow business through direct sales channel as the company need not to pay commission
to intermediary which is possible in case of sale on Amazon.
Complete business autonomy: On own online stores, Amana Ltd will able to get
complete business autonomy. The impact of which company can set their own business rules as
well as produce best outcome for the company. Hence, it is recommended to Amana Ltd that
they should opt for setting up own online store with the aim to go online.
Drawbacks of own online store:
Site crash: At the time when site of Amana Ltd crashes than the customer unable to place
order and buy goods. This leads to reduction in sales revenue during site crash.
Ecommerce is highly competitive: The competition level in e-commerce sector is high
which create difficulty for new firms to exist and get stability in this market (Išoraitė and
Miniotienė, 2018).
Customer can be impatient: It is not possible that all the customer has patience regarding
their order but sometime many customers became impatient. At that time, it became difficult for
Amana Ltd to keep customer motivated and positive during late shipping time.
Benefits of sell on Amazon:
Quick trust building: This factor indicates that if Amana opt for sell on Amazon option,
then they able to build quick trust of customer. It is because buyers easily trust the seller who sell
them products through reputable channel such as Amazon. This benefit is not easily accessible in
case of own online store.
Automatic credibility as a seller: This is also one of the major disadvantage of selling
through other online shopping channel to Amana Ltd. In this way, it can be said that Amana will
able to get automatic credibility as a seller.
More traffic during initial stage: From the initial stage only, Amana Ltd will get more
traffic from the customer all over the world if they sell their products on Amazon. It is because
this app is highly used by people all over the world (Davenport, 2018).
8
Drawback of sell on Amazon:
High cost of commission: This is a disadvantage of selling goods on Amazon because
Amana Ltd need to pay high cost of commission to Amazon for every sale they made to
customer.
Poor communication with customer is also one of the drawback of other option which is
not recommended to Amana Ltd (Zheng and et.al., 2020).
CONCLUSION
After summing up the above information, it is concluded that Amana Ltd performance
during the year 2020 as per the monthly control report is poor. Further, it is also concluded from
the above report that the gap between the actual and flexible budget of Amana Ltd is negative or
adverse in the term of sales revenue, profit, direct material and direct labour. In order to improve
these areas, various strategies have been also recommended in the present report such as forward
contract with suppliers, training to employees etc. Moreover, it is also concluded from the report
that Amana Ltd should opt for first option of setting own online shopping channel. Lastly, the
report has properly justified that why setting own online shop is best for Amana Ltd as compared
to sell on Amazon.
9
High cost of commission: This is a disadvantage of selling goods on Amazon because
Amana Ltd need to pay high cost of commission to Amazon for every sale they made to
customer.
Poor communication with customer is also one of the drawback of other option which is
not recommended to Amana Ltd (Zheng and et.al., 2020).
CONCLUSION
After summing up the above information, it is concluded that Amana Ltd performance
during the year 2020 as per the monthly control report is poor. Further, it is also concluded from
the above report that the gap between the actual and flexible budget of Amana Ltd is negative or
adverse in the term of sales revenue, profit, direct material and direct labour. In order to improve
these areas, various strategies have been also recommended in the present report such as forward
contract with suppliers, training to employees etc. Moreover, it is also concluded from the report
that Amana Ltd should opt for first option of setting own online shopping channel. Lastly, the
report has properly justified that why setting own online shop is best for Amana Ltd as compared
to sell on Amazon.
9
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
REFERENCES
Books and journals
AlKhajeh, M. H. A. and Khalid, A. A., 2018. The Relationship of Implementing Management
Accounting Practices (MAPs) with Performance in Small and Medium Size
Enterprises. Journal of Accounting and Auditing: Research & Practice, pp.1-7.
Baumgart, D. C., 2020. Digital advantage in the COVID-19 response: perspective from Canada’s
largest integrated digitalized healthcare system. NPJ Digital Medicine. 3(1). pp.1-4.
Chen, X., Liu, C. and Li, S., 2019. The role of supply chain finance in improving the competitive
advantage of online retailing enterprises. Electronic Commerce Research and
Applications. 33. p.100821.
Davenport, T. H., 2018. The AI advantage: How to put the artificial intelligence revolution to
work. mit Press.
Drury, C., 2018. Cost and management accounting. Cengage Learning.
Hansen, D.R., Mowen, M.M. and Heitger, D.L., 2021. Cost management. Cengage Learning.
Išoraitė, M. and Miniotienė, N., 2018. Electronic commerce: Theory and practice.
Oyadomari, J.C.T. And et.al., 2018. Flexible budgeting influence on organizational inertia and
flexibility. International Journal of Productivity and Performance Management.
Phillips, R.L., 2021. Pricing and revenue optimization. In Pricing and Revenue Optimization.
Stanford university press.
Rashid, M. M., Ali, M. M. and Hossain, D. M., 2020. Strategic management accounting
practices: a literature review and opportunity for future research. Asian Journal of
Accounting Research.
Unnu, K. and Pazour, J.A., 2019. Analyzing varying cost structures of alternative warehouse
strategies. In IIE Annual Conference. Proceedings (pp. 480-485). Institute of Industrial
and Systems Engineers (IISE).
Zheng, Q. and et.al., 2020. What factors affect Chinese consumers’ online grocery shopping?
Product attributes, e-vendor characteristics and consumer perceptions. China Agricultural
Economic Review. 12(2). pp.193-213.
10
Books and journals
AlKhajeh, M. H. A. and Khalid, A. A., 2018. The Relationship of Implementing Management
Accounting Practices (MAPs) with Performance in Small and Medium Size
Enterprises. Journal of Accounting and Auditing: Research & Practice, pp.1-7.
Baumgart, D. C., 2020. Digital advantage in the COVID-19 response: perspective from Canada’s
largest integrated digitalized healthcare system. NPJ Digital Medicine. 3(1). pp.1-4.
Chen, X., Liu, C. and Li, S., 2019. The role of supply chain finance in improving the competitive
advantage of online retailing enterprises. Electronic Commerce Research and
Applications. 33. p.100821.
Davenport, T. H., 2018. The AI advantage: How to put the artificial intelligence revolution to
work. mit Press.
Drury, C., 2018. Cost and management accounting. Cengage Learning.
Hansen, D.R., Mowen, M.M. and Heitger, D.L., 2021. Cost management. Cengage Learning.
Išoraitė, M. and Miniotienė, N., 2018. Electronic commerce: Theory and practice.
Oyadomari, J.C.T. And et.al., 2018. Flexible budgeting influence on organizational inertia and
flexibility. International Journal of Productivity and Performance Management.
Phillips, R.L., 2021. Pricing and revenue optimization. In Pricing and Revenue Optimization.
Stanford university press.
Rashid, M. M., Ali, M. M. and Hossain, D. M., 2020. Strategic management accounting
practices: a literature review and opportunity for future research. Asian Journal of
Accounting Research.
Unnu, K. and Pazour, J.A., 2019. Analyzing varying cost structures of alternative warehouse
strategies. In IIE Annual Conference. Proceedings (pp. 480-485). Institute of Industrial
and Systems Engineers (IISE).
Zheng, Q. and et.al., 2020. What factors affect Chinese consumers’ online grocery shopping?
Product attributes, e-vendor characteristics and consumer perceptions. China Agricultural
Economic Review. 12(2). pp.193-213.
10
11
1 out of 12
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.