NameCosting, Budgeting and Internal ReportingUnfortunately, that is no longer the case. Due to increased pressure from competition the current business model is no longer producing satisfactory results. Eastvaco operates in a decentralized manner with each facility being treated as an investment center. During your meeting with Sue you received a brief history of Eastvaco and the Charlotte Subsidiary. You listen intently has Sue gives you the following overview.Eastvaco Corporation, a Delaware Corporation incorporated in the early 1900s is one of the major producers of paper and paperboard in the United States. The company converts paper and paperboard into a variety of end products, manufactures a variety of specialty chemicals, produces lumber, sells timber from its timberlands and is engaged in land development. In Brazil, it is a major producer of paperboard and corrugated packaging for the markets of that country and also operates a folding carton plant. Eastvaco also has a folding carton plant in the Czech Republic. Eastvaco exports products from the United States, Brazil and the Czech Republic to other countries throughout the world.The Charlotte facility was created in the late 1980s whose mission was to producehigh quality, environmental friendly, paper products. The Company believed, due to the substantial EPA violations and public opinion regarding the environment, that a cutting edge, low carbon footprint plant needed to be built. The Company uses the Charlotte facility as their premier plant and is used in much of their public relation campaigns. In the beginning the plant was enjoying a comfortable market share of green paper products. This was due to extensive advertising and relatively little competition in the use of green technology. The previous controller, Jim Person, had been with the Company for 28 years. While experienced and knowledgeable, he often relied on outdated methods of gathering information. He did not utilize all available information and reports (other than required financial reports) were not very extensive. In particular, internal reports and analyses were not considered a high priority.The Board has authorized a large bank loan to upgrade facilities but due to the previous controllers attitude, we simply do not have the required reports that will likely be required by banks. Sue has provided you with a complete set of financial statements, complete with Charlotte specific financial information. She strongly suggests that you begin by reading the complete set of statements that Eastvaco included in their SEC 10K report.After an intensive analyses of available information you prepared al budget worksheet. The following information is provided: fixed cost for 2007 totaled $6.5 Million, variable cost for envelopes is $15.3 Million, cups is $9.3 Million and packaging is $3.3 Million.
Costing, Budgeting and Internal Reporting
We help you get better grades, improve your productivity and get more fun out of college!!
Homework Answers Online
Free title page
Free reference page
How it works – it’s easy
Place your Order
Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.
Make a payment
The total price of your order is based on number of pages, academic level and deadline.
We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to ensure that the assignment meets all of your requirements.
Once complete, we’ll send your assignment via the email provided on the order form.