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Hi, I have a report to do for my management accounting unit. The following paragraph is apart of the relate case.
Hi, I have a report to do for my management accounting unit. The following paragraph is apart of the relate case.
Alistair Cook, my purchasing manager has informed me that one of our suppliers, namely Thejo Rubbers, is going into liquidation. They have excess stock of H-valves, which we use quite a bit of. However, my concern is how Alistair found out about Thejo going into liquidation. There's nothing reported in the news as yet and no one else seems to know anything about it. I have heard that Alistair is seeing someone from Thejo, but I cannot confirm that. Is there anything wrong if we decide to proceed with the purchase of H-valves? We do not really need the stock right now, and we do not have spare cash lying around, but if the price is really good due to their liquidation, then it might make sense for us to buy them now. Can you work out whether there is any issue with this proposal from Alistair?"
My question is what am I required to discuss from this paragraph and how can I relate it to management accounting.
Thanks