A REPORT ON CASE STUDY:

STAPLEFORD’S DEPARTMENTAL STORE

Submitted to: Prepared by:

Abul Kalam Azad Team #13

Assistant Professor Maisha Maliha (ID #170061001)

BTM Department Afrin Khondokar(ID #170061052)

Islamic University of Technology

CONTENTS:

 Case Overview
 Problem #1
 Problem #2
 CASE OVERVIEW
 Philip Stapleford,managing director of Stapleford’s Departmental Store grew a
significant fascination towards home boat-building stands.
 Aiming as a 33.33% on selling price of the stocked items,plans to cover one fourth of
the first floor,with three staffs for the water-sports department.
 With quite obvious uncertainties to go through,Philip took help of his office
manager,Brad to make the final decision.

PROBLEM #1
Assess Brad’s competence as an accountant.

BRAD’S STATEMENT:
£produced figures to remind Philip of the possibilities.

Split expenses of the departments:

 Building
 Distribution
 Administration
 Goods receivable and general expenses
 Depreciation

Lastly, throwing up an idea to close three of the departments and to cover them up
there must be an increase of profit more than £2000 or so.

Calculation:
Gross profit =33% of £180000
=£19800
Building expense =25% of {£8195-£(810+310+1049)}
=1489
Wages expense =£2500
General expense =£ (91+65+26)
=£182
Depreciation of fitting =£(200+200)
=£400
Net profit =£19800-£(1489+2500+182+400)
=£15229

Here are the top qualities that prove Brad’s competence as an accountant.
 DECISION MAKING
Brad used effective approaches for choosing a course of action and developing
appropriate solution.As he took action consistent with available facts,constraints and
anticipated consequences as we can go through his last statement.

 SUPERVISION
Monitor and assess work,provide feedback,provide technical knowledge,skills was
shown thoroughly in his statements.

 STRATEGIC AND TACTICAL PLANNING

Tactics always show a upper hand to every planning, as we could came across that
Brad communicated the state of various departments to Philip and also discovered
an issue of loss in the three departments. He gave a strategic plan of how to take
over with the profit of new department.

 PROFESSIONAL INTEGRITY
Brad was trusted to do the right thing and not to overlook dubious activities. He very
professionally analyzed the previous years trading and profit loss accounts,
apportioned expenses to departments and made the correct decision.

 ACCURACY
Details matter and there is no room for error in accounting. He first made sure to
find any mistakes in the accounts and paid attention to materiality before sending it.

PROBLEM #2
 How would you use the information in the case study to assist Philip Stapleford to make a
decision as to whether he should introduce the new department? Indicate any further
information which would be useful when making the decision.

OPENING UP A NEW DEPARTMENT

Probable ADVANTAGES

• Cut of labor cost

• Increase of profit
• Not any specialized water sports shop nearby
• Wages reduced to £2500 annually from £3075

Probable DISADVANTAGES

• Risk of a new product

• Loss of customers from 4,8,9 departments
• Not enough sale
• Uncertainty

FEW ADDITIONAL INFORMATION

FOR HELPING AFTER
OPENING A NEW DEPARTMENT
• Spend a good portion of the capital in advertising wisely for better promotion
• Since there is risk while closing the 4,8,9 departments so well acquittance and
maintenance must be ensured to avoid any further loss
• Always prefer the taste and preferences of the customers for better outcome
• Take care of the security to avoid unwanted theft or robbery.