MacKenzie Maddox

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Alabama A&M University *

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ACC-450

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Business

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Apr 3, 2024

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docx

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MacKenzie Maddox February 25, 2024 Advanced Accounting Dr. Hammon Travel-Space Trailers Based on the projections, it appears valid and reasonable for Travel- Space Trailers. Travel-Space Trailers researched the marketability and potential demand for its products. The demand for Travel-Space Trailers company products is high. The company has a good reputation, and its products are well-made. The market for their products is good, and they have a lot of repeat customers. According to FERS SLER & DENISO n ( 2021 ), the number of people who have retired have continued to increase hence the increased demand for trailers. In addition, the spending power of the retirees have increased significantly. According to the report, the number of older individuals who are expected to benefit from retirements benefits have increased. The reports have an approximate value of 14 to 20 trillion within the next 20 years period the population of retirees is also large which makes the target market large. According to 2017 population census, there was a 47 point right million retirees in the United States. This represents 17% of the total population. They have also considered the competition and the current economic conditions. Travel-Space Trailers has made a significant breakthrough in research and innovation. The company has been creative in developing a unique product that can be used by old people for luxury purposes. This means competition in a similar product is low as there are no close substitutes for the product. Furthermore, the company has a history of sales and is therefore able to make accurate predictions about future sales. 2a. The possible issues with travel space trailers cost estimates could include inaccuracies in the estimates of the cost of aluminum, equipment, and selling and administration costs. Additionally, there could be issues with the company's assumptions regarding the demand for its trailers and the costs associated with producing them. 2b. The company has a very aggressive growth strategy, which may put strain on its current financing plans. Additionally, the company has a large amount of debt, which could pose problems of business slows down or the company faces any other unforeseen challenges. 3c. The issues revealed in the budgets revealed inconsistencies where some areas challenged the accuracy of the company’s costs. For example, the estimates aren’t consistently tracked—some are tracked by units produced or the time required to complete the project. This issue can cause errors in

their budgeting period since the organization does not have a secure and consistent system to accurately track the budgeted and actual costs. Therefore, it cripples the company’s ability to identify areas of overspending and decreasing spending. Also, the company does not have processes to update its budget as the project continues, which can lead to errors of overspending more than what the original budget recorded. There are a few issues with travel space trailers procedures for preparing budgets. First, the company does not seem to have a clear and consistent method for estimating costs. For example, in some cases costs are estimated based on the number of units produced, while in other cases they are estimated based on the amount of time required to complete the project. This lack of consistency can lead to errors in the budget period second, the company does not have a good system for tracking actual costs versus budgeted costs. This makes it difficult to identify areas where the company is overspending or underspending. Finally, the company does not have a good system for updating the budget as the project progresses. This can lead to problems if the project ends up costing more or less than originally budgeted. 5. Travel Space Trailer should consider changing its budget team procedures to allow for more flexibility and creativity in order to improve financial performance. The company should also review its sales strategies and consider ways to increase sales and revenue. Additionally, travel space trailers should review its production strategies and look for ways to improve efficiency and reduce costs. Finally, the company should consider changing its performance evaluation system to better assess the performance of individuals and teams. LETTER HEAD Dear Paul, thank you for hiring me as an independent consultant to investigate the difficulties that travel space trailers is experiencing. Based on my findings, i have developed the following recommendations: 1. Travel Space Trailer should consider changing its budgeting procedures to allow for more flexibility and creativity in order to improve financial performance considering the current budget, I have found there is more complexities in the budget which is likely to bring unnecessary expenses. Travel space trailers should be more creative when developing its budget in order to minimize unnecessary expenditure and maximize its profits. 2. Reviewing its sales strategies and consider ways to increase sales and revenue. a. Offering financing options to the customers can help to increase sales and revenue for travel space trailers. This can make it

easier for customers to purchase a trailer, and can also help to attract new customers, as well as keep existing customers interested. 3. Offering discounts on Travel space trailer can also help to increase sales and revenue this can help to attract new customers. a. It should review its production strategies and look for ways to improve efficiency and reduce costs. Production is key and can determine a company's success. Travel Space Trailer should also consider developing a more efficient production budget. the production budget should be enough to meet the projected sales and ensure there are no deficiencies. Thanks. Best regards, McKenzie Maddox

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