The principal activities of Ukhuwah Bhd are manufacturing, assembling and sale of kitchen cabinets products, components...
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The principal activities of Ukhuwah Bhd are manufacturing, assembling and sale of kitchen cabinets products, components and parts. Sales are made according to the orders placed by customers requiring the products. The existing and potential customers are usually large factories that produce kitchen cabinets and as such, no credit rating is made. The products will be produced according to the specification required by the customers. The R&D department will set a special meeting with the customers to discuss their orders. No specific documentation is used to record the outcome of the meeting and any agreement between both parties will be forwarded in an unspecified format to the production department. The finished products will be delivered immediately to the customers once they are ready. The finished product will be deliver by any available workers. The accounts clerk, Puan Ana will prepare a two-copy sales invoice that states the quantity and selling price of the product delivered. The goods will be delivered together with the original and duplicate copies of the sales invoice. The accounts department does not keep any hardcopy of the invoices. No confirmation is obtained from the customers whether the goods have been delivered safely or not. If there is no query from the customers, the accounts department will assume the goods are delivered safely and payments from the customers will be received according to the credit term stated in the invoice. Required: [0] [ii] Discuss FOUR (4) weaknesses of the above sales system. Explain FOUR (4) possible effects that may arise from the weaknesses identified in (a) above. [4M] Recommend FOUR (4) recommendations to the identified weaknesses in (a) above. [4M] a. Weaknesses Present your answer in the following format: b. Possible effects [4M] d. Explain any FOUR (4) strengths of the sales system. c. Recommendations [8M] [TOTAL: 20 MARKS] The principal activities of Ukhuwah Bhd are manufacturing, assembling and sale of kitchen cabinets products, components and parts. Sales are made according to the orders placed by customers requiring the products. The existing and potential customers are usually large factories that produce kitchen cabinets and as such, no credit rating is made. The products will be produced according to the specification required by the customers. The R&D department will set a special meeting with the customers to discuss their orders. No specific documentation is used to record the outcome of the meeting and any agreement between both parties will be forwarded in an unspecified format to the production department. The finished products will be delivered immediately to the customers once they are ready. The finished product will be deliver by any available workers. The accounts clerk, Puan Ana will prepare a two-copy sales invoice that states the quantity and selling price of the product delivered. The goods will be delivered together with the original and duplicate copies of the sales invoice. The accounts department does not keep any hardcopy of the invoices. No confirmation is obtained from the customers whether the goods have been delivered safely or not. If there is no query from the customers, the accounts department will assume the goods are delivered safely and payments from the customers will be received according to the credit term stated in the invoice. Required: [0] [ii] Discuss FOUR (4) weaknesses of the above sales system. Explain FOUR (4) possible effects that may arise from the weaknesses identified in (a) above. [4M] Recommend FOUR (4) recommendations to the identified weaknesses in (a) above. [4M] a. Weaknesses Present your answer in the following format: b. Possible effects [4M] d. Explain any FOUR (4) strengths of the sales system. c. Recommendations [8M] [TOTAL: 20 MARKS]
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a Weaknesses Lack of Documentation for Customer Agreements There is no specific documentation used to record the outcomes of meetings or agreements with customers leading to potential misunderstanding... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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