ABC Company- Accounting Analysis



ABC Company- Accounting Analysis

Introduction

The Manufacturing division in United States includes stations occupied with the mechanical, physical, or compound conversion of materials, substances, or segments into new items. The assembling of parts of made items is acknowledged assembling, with the exception of in situations where the movement is fittingly grouped in Sector 23, Construction. Establishments in the Manufacturing area are regularly depicted as plants, production lines, or factories and distinctively utilize force driven machines and materials-taking care of gear. On the other hand, foundations that change materials or substances into new items by hand or in the laborer's home and those occupied with offering to the overall population items made on the same premises from which they are sold, for example, bread kitchens, treat stores, and custom tailors, might additionally be incorporated in this part. Assembling foundations might handle materials or might contract with different stations to process their materials for them. Both sorts of stations are incorporated in assembling. Thus, the new product line that uses the shingle raw materials to build dollhouses will add to the equity of the CEO plus this project will generate profits but require large initial investments. The calculations and analysis further in the assignment discusses the impact of the new product line in the marketplace (US Census Bureau, 2013).

Answer: I

There are a number of risks involved in the new product line being launched by ABC Company. An overall risk profile of the company based on current economic and industry issues that it may be facing. The company will have to face problems in shifting the cost and the production capacity. The initial problems, which the company can face, are the financial problems as there will be added investments for the greater risks involved in the new project. Secondly there will be a problem of the skilled worker force to manage the new business line. In United States, there is a significant gap in the manufacturing skills of the workers thus ABC Company must look for skilled work force and financial aspects before launching the new product (Sirkin et al., 2013). The manufacturing council if United States establish subcommittees for research and development, export growth, innovation, tax policy and manufacturing Energy policy. These economic indicators are being worked (International Trade Administration). United States still faces the after effects of the recession and this global recession made many other companies hit the market. As a small and medium sized company the spread and exacerbation of a number of difficulties would be a major burden. There is a shortage of credit which would substantially reduce the process of economic recovery; this can affect the relationships between distributors and suppliers. There is a risk that the consumption of the current product could weaken the predicted value. There can be a negative impact on the demand of the product compared to the other companies across the globe. Thus, the standards should be maintained along with an ample supply of finance and skilled ...