Drawbacks of ERP Systems - Accounting Assignment Help

Assignment Task :

Question 1:

Traditional management accounting tools such as Job Costing, Process Costing and CVP analysis are indispensable tools in business. However, there are drawbacks. Modern ERP (Enterprise Resource Planning) systems can overcome many of the limitations. Should all medium and large business enterprises install these systems? Outline the benefits and drawbacks of ERP systems. 

Question 2:

Dave is a new management accountant at Tuscon’s Tables, a manufacturer of high quality and specialty tables. He is beginning his second day on the job. He has discovered that there are two new managers. One is a sales manager and another is a floor supervisor (manages the manufacturing process). He understands that the information needs of these managers may overlap with the needs of board members including the CEO. He is planning to approach the managers and discuss their information needs. 

1. What advice could Dave present to the CEO about the kind of information that the managers would need?

2. What soft skills will be necessary to resolve this matter? Describe these skills.

Question 3:

Below is a graph which presents a CVP analysis of the production of one of Tuscon’s Tables’ products: the “Gammit Shifter 3000”. It has been a highly profitable product in the past but Tuscon’s fixed costs have increased markedly this year as a result of increasing rent and electricity costs.

1. Describe point ‘A’ on the graph

2. Describe and contrast points the regions denoted by ‘B’ and ‘C’ on the graph.

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