Accounting case s Study Example | Topics and Well Written Essays - 500 words

Accounting s - Case Study Example The request of baker to be involved in the scheduling of employees and the discussion over the costs of the labor force also indicates cases of fraud. According to him, he thinks that maybe there is more money given in order to fund more experienced labor but someone and most probably the departmental manager uses the allocated funds to recruit less qualified labor at a cheaper cost bearing in mind that the department would still record high profits. Through the complaint that the departmental statement includes charges that are not related to the bakery also indicates that the baker is concerned by the fact that the departmental manager may be using the high profits from the bakery department in order to account for losses made in other sectors of the department. According to reliable operating statements, it is prudent for all the sectors in a department to have their statement in order to help analyze the effectiveness and the progress of the sector As clearly observed from the baker’s complaint, it is clear that there may be cases of fraud and mismanagement of funds going pun from the management of the department. It is, therefore, recommendable that the baker must be involved in decisions to do with the choice of labor. Despite the fact that his sector records high profits, more experienced labor s required in order to help produce more. It is only through an increase in the profits from the preceding year that will mark development and growth of the company. It is also recommendable that the baker must be involved in the making of the general statements for the department. The fact that there happens to be charges in his sector that are not related means that resources from the bakery sector are used to source other sectors. In order for a company to grow, each sector and department has to be accountable for its expenses. This makes it easier to realize the weaknesses and be able