rybloxx primarily uses one courier company, AJAX Couriers, for all their deliveries. In some circumstances, where AJAX is too busy and does not have capacity to fulfil deliveries or they do not cover certain areas, only then will Prybloxx make use of a different courier company. Prybloxx has recently had a significant influx of customer complaints regarding goods that have not been delivered, delivered long after the agreed delivery time or damaged once they arrive at the customer. Prybloxx is aware of the effect that this could have on demand for their product, customer goodwill and are now investigating insourcing the delivery of their product to customers. Prybloxx has noted that they have two alternatives in insourcing this department – they can either purchase a local courier company that is considered a going concern or they can purchase all of the required assets and set up such a department themselves. Mr. Pranoto (production manager) has requested that you prepare a report for all the managers highlighting the effect that each of the alternatives will have on the (consolidated) financial statements of the Prybloxx group. He has also requested that you list some concerns you would have with regards to each of the alternatives.
Prybloxx primarily uses one courier company, AJAX Couriers, for all their deliveries. In some
circumstances, where AJAX is too busy and does not have capacity to fulfil deliveries or they
do not cover certain areas, only then will Prybloxx make use of a different courier company.
Prybloxx has recently had a significant influx of customer complaints regarding goods that
have not been delivered, delivered long after the agreed delivery time or damaged once they
arrive at the customer. Prybloxx is aware of the effect that this could have on demand for their
product, customer goodwill and are now investigating insourcing the delivery of their product
to customers.
Prybloxx has noted that they have two alternatives in insourcing this department – they can
either purchase a local courier company that is considered a going concern or they can
purchase all of the required assets and set up such a department themselves.
Mr. Pranoto (
managers highlighting the effect that each of the alternatives will have on the (consolidated)
financial statements of the Prybloxx group. He has also requested that you list some concerns
you would have with regards to each of the alternatives.
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