Memo Assignment Example | Topics and Well Written Essays - 250 words - 4

Memo - Assignment Example It gives the business a room to see the direct impact of falling short on expected variables, such as procurement costs, sales levels, or number of distribution channels. Spreadsheets benefits: It does not only provide the user with a way to present numbers, but also to give the mathematical relationship between the numbers, so that the implications of the different assumptions could be prepared easily and persistently. Parameters to be changed: There will be addition in raw materials to produce more products to cater for the growing market and purchase of new equipment, to avoid overworking the old machines due to extra production of products. Increase in cost that is bound to happen due to the purchase of a new machine and extra production of products will have an effect on the Net income of the company. But because of increase in sales due to the growing market, the costs are to be covered without any problem. Nonetheless, increase in sales means increase in advertising costs, labor costs, but an increase in sales revenue is the outcome which will eventually increase the net income in the income statement. As this system is implemented, the management can track the vital in-combination cost drivers, and be proactive in auctioning changes should the need arise (Scot, Chan, & Saltelli,