Subida

1. Subida Souvenirs has their Vision and Mission posted on their company website,
subidasouvenirs.com. Its availability on the company site stands to reason that Subida’s
stakeholders may easily access the Vision and Mission statements.
2. The company primarily uses manual processing with products being made by their craftsmen.
The company has invested in equipment to automate certain tasks; such as laser engraving,
cutting tools, cleaning tools. Majority of this equipment is still operated by, and is meant to
assist, their craftsmen.
3. The company uses absorption costing for their products. The company makes use of process
costing for their general operations.
4. The company has short-term budgets at monthly periods and currently does not utilize long-
term budgeting. However, due to the growth of the company they have expressed intention to
look into long-term budgeting to increase efficiency.
5. Due to the current size of the company, it presently uses the traditional method for allocating its
Fixed Overhead.
6. The company incurs prevention costs through their constant training of their craftsmen.
However, inspection tends to occur when the finished product is received by the company
therefore incurring internal failure costs as these products must be returned or reworked.
7. The company does not account for variances with their budget, opting to adjust based on the
previous month or similar months’ performance.
8. The company’s intention is to inculcate into their craftsmen a feeling of taking ownership of
their craft. Craftsmen and artisans are largely autonomous and act as suppliers to the company;
they are also given training and are provided equipment and workshops when they are brought
into the company. These investments made by the company are paid in installments by the
craftsmen through their work produced.
9. The company does not use just-in-time methods for inventory. They stock however much their
artisans produce in their stores and place any excess in storage.