Question A
The submitted financial information does not offer enough details for the managers to make plans. The information presented was just enough for the external associates of the company, that is, shareholders and creditors (Academy,2012). For instance, the financial accountant did not break down the summation of total costs to the cost of assembling an individual type of vehicle, either SUVs, trucks, or cars. Therefore, the managers could not assess whether a certain type costed more than they projected. Also, the other miscellaneous expenses indicated in the financial statement were only essential for external members of the firm. The managers needed thorough information to examine whether they could regulate the costs. The accountant did not submit the detailed information, so the managers could not ascertain whether the company's profitability was as they anticipated.
Question B
Firstly, the managers needed a breakdown of the cost of goods sold. That means the cost of assembling each type of vehicle. This way, the company could decide whether to decrease the cost or adjust the prices to maximize profits. Secondly, the selling, administrative, and other costs were not specific. A managerial accountant could break these costs down for the managers to assess what specifically spends a certain amount. Also, the breakdown would create a rapport for managers to decide on how to regulate these costs. Thirdly, a managerial accountant could specify the income expenses for the managers. That includes wages, maintenance costs, and bank rates. That way, they could decide and project on future performance.
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Question C
One of the nonfinancial factors the managers at Ford should consider is the percentage of substandard vehicles assembled out of the total number of vehicles. This would help them improve their output rate, hence the revenues ( Schoenfeld, 2019) . Besides, the managers should check on the time consumed in assembling a vehicle. Minimizing the time would promote a higher output rate, hence the turnover rate and profits too.
References
Academy, S. (2012). Chapter 1 What Is Managerial Accounting? What Is Managerial Accounting? https://saylordotorg.github.io/text_managerial-accounting/s05-what-is-managerial-accounting.html
Schoenfeld, H. M. W. (2019). The present state of performance evaluation in multinational companies. In Managerial accounting and analysis in multinational enterprises (pp. 217-252). De Gruyter.
