Management Accounting Memo Essay

Mr. Blackheath had promoted Lee High to fault president of finance. Lee had practically been running the firm for salwaysal days during which time sales and profit had been declining. On November 15, 1977, Mr. Blackheath announced that his discussion. battle of Trafalgar Blackheath, would sway over as owner and president on January 1, 1978. Trafalgar was a graduate of an MBA program and for several years had been working for a bombastic consulting firm as a marketing specialist. In their private discussions Mr. Blackheath told his son that the problems in the family firm were marketing rather than financial, so the situation was rear made for Trafalgar. Mr. Blackheath, it seems, had been completely taken by Lee High. When Trafalgar in the long run arrived on December 1, 1977, and began to read various internal reports he get Blackheath Manufacturing Co. did not have a cash budget and there didnt seem to be much in the way of financial planning.Trafalgar asked Lee High or so this. Lees response was that Blackheath Manufacturing Co. ran on the basis of several well-developed decision rules and budgets werent necessary because if the firm ever ran out of funds, Mr. Blackheath simply deposited 10,000 or 20,000 in the bank. Trafalgars response was swift and clear My father is a millionaire, but I am not Lee indicated he didnt know much about budgeting but he would get an assistant to work up some(a) stuff. Trafalgar decided to call his old friend Crofton Brockley. Brockley was in bespeak of several large budgeting projects for a consulting firm and Trafalgar knew Crofton to be a recognized expert on budgeting for small companies. Fortunately for Trafalgar, Brockley wasnt particular that week and was able to travel down the next day.