Old Mule Farms
ACC 502 Managerial Accounting
October 15, 2013
Dr. Kyle S. Meyer
In the ever-growing small to large business sector, operational decisions are important to determine if an organization has sufficient resources to maintain its operation, expand, or make investments for the ongoing benefit company. Organizations often employ professional consultants to evaluate operations deficiencies, including the preparation of cost analysis to better gauge their growth and refine its operating decisions. The ultimate goal is to make a recommendation serving the best interest of the company and the owners, based on a cost analysis, future potential earnings, and market conditions.
This evaluation addresses the present operating conditions of Old Mule Farms (hereinafter referred to as “OMF”), a family owned cattle farm. The owners are facing critical decisions regarding the future of the farm and have sought assistance to review all factors that may be affecting the profitability of the farm. The evaluation reveals the financial performance of the company using the information provided in the case, including consideration for all the key drivers of performances, including company profit or loss for both short term and long term.
The financial analysis will show how each factor influences managerial decisions using the calculation to support the decision. The findings and recommendation proffered to the owners of the farm, focuses on actions that will have the greatest positive impact on the farm’s operation and ultimately its bottom-line. We further recommend how the OMF can improve its profitability to deliver more value to its owners, and provide a brief plan to implement the recommendations. Finally, the assessment will provide quantifiable reasons for any recommendations made regarding the operation and sustainment of the business.…...