Create a 3 pages page paper that discusses furniture scenerio. The sheet is very helpful in ascertaining the advantages and disadvantages of each course of action. An example of this is the data that

Create a 3 pages page paper that discusses furniture scenerio. The sheet is very helpful in ascertaining the advantages and disadvantages of each course of action. An example of this is the data that compares the "benefits cost" among the alternatives. The data shows that indeed, the "broker" option yields the largest savings in wages, which can be very essential information if labor cost is forecasted to continuously increase. On the other hand, if equipment prices will continue to rise, the data will also be helpful in identifying the disadvantage of "hi-tech" and broker options.

The Assets, Liabilities and Equity Information basically provide a glimpse on the financial health of the company. Particularly, it tells about the company's liquidity which may allow it to invest in hi-tech equipment or its liabilities record which can guarantee a source of leverage in case the current cash standing is not enough. The Accounts Receivable is also useful in determining possible source of cash in the future, while the equity information gives information into the ownership of shareholders in the company.

The budget data and variance analysis helps to distinguish which of the inputs to production needs to be economized and which among these are kept within the budget. Similarly, variance analysis helps keep the cost within the budget.