Area: Determining Management Accounting Information: Delayed Orders: Case 1

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Delayed Orders: Case 1

Management Accounting

The Case of Delayed Orders


Area: Determining Management Accounting Information

Ms. Kristine is a teacher who handles Science subjects in Excelsior Grade School. In
preparation for the Science Fair, she is organizing a competition among Grade 3 pupils.
Part of the preparation is ordering 2 books entitled: “Modern Science in the 21st Century”
& “Dynamic Science.”

The Science Department has already placed the 2 book orders with the Procurement
Department. Delivery of such books to Ms. Kristine will be 2 weeks from date of request as
promised.

The Procurement Department’s main responsibility is to purchase school equipments,


facilities & office supplies.

Book purchase requests are only processed if there are 50 - 100 orders. The book center
takes charge of buying books if less than 50 are ordered. As a school policy, all book
requests will pass the book center for log register.

The Finance & Treasury Office received the request form from the Science Department.
Upon checking the price of the 2 books, Php1,700.00 was already charged to the
department.

It has been closed to a month and no books have been received yet by Ms. Kristine. She
inquired from the Procurement Department and got a reply that her order should be
coursed through the Book Center.

Guide Questions:
1. What cause the delay?

2. What management accounting information are important to make the ordering


system efficient and effective?

3. What are the valid department / unit information needs?

Institute for the Development of Educational Administrators (IDEA) Page 1 of 1

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