Reference no: EM132833481

MPMA7113 Managerial Accounting - City University Malaysia

Tan Trading Company manufactures furniture in Penang for local and European markets. The company is unable to produce enough to meet the demand of the local and European market.This isdue to shortage of raw materials, which are source locally. It is extremely important for the company to produce enough to meet the demand of the local and Europeanmarket. If the company loses the customer to other competitors, it will be extremely difficult to recapture the local and European market.

You are required to do a research and report to the board of directors;

a) Introduction

b) Discuss on what a limiting (or key) factor is and what sources can become limiting factors in a business situation. Which of the factors in the scenario could become a limiting factor?Looking into the current economic constraints, provide examples to support your idea.

c) Discuss the techniques that have been developed to assist in business decision making when single or multiple limiting factors are encountered.

d) A report to the management under the current economic environment and state in your viewsthe options available to overcome the material or other resource shortage under the current economic environment. You are required to make the recommendation to the management on the options available.

e) Conclusion

Attachment:- Managerial Accounting.rar