Answer

Conceptual Framework for Managerial Accounting

MEMO

To the Chief Operating Officer

This is to inform you that the change which should be implemented is addition of new raw materials, so as to improve the flavor of products. Once we have settled on this change, we will have to gather information on the availability of the various raw materials, the cost of these raw materials, their quality, materials used by our competitors and bureau of standards requirements on new raw materials. All the materials that have been gathered should be considered as alternatives, and can only be gotten rid of if all they do not meet the standards set by the company. Analysis of the various materials picked, must be done in liaison with the key stakeholders in production such as procurement department, sale and marketing departments, production department and finance department Yung-Chi, et al.,2012).

In making  this decision, various scopes will have to be considered. The scope should entail the following; the quality of the raw materials and the value it will add to our current products, the ability of the company to finance the transition, the time to be taken during transition process and the possibility of having market hiccups during transition.  Besides, parameters such as customers taste and preference, the market trends, time to be consumed in this, cost and the technical know how must also be taken into consideration.  Decision making is a process, and all stages must be followed religiously, for the goal and objective to be realized (Kerfoot, 2011). Though the process has to be followed keenly, there is no guarantee the desired results will be met as at the time which has been projected.  There is therefore need for having a provision for an alternative course of action, just in case the one opted for does not materialize.  Finally, there is need for continuous review to establish the level of effectiveness and efficiency of the new course of action.

Yours Sincerely

Kennedy Johns

Cost Accountant