A proposal has been made at Diversico Management & Consulting Inc. to employ a person for the new position of Accounts Manager. The annual salary cost for the Accounts Manager position is projected to be $58,000. Before a person can be employed for the position of Accounts Manager, the Company president has demands that the Accounting Department at Diversico Management & Consulting Inc. provide evidence that the Company can afford to pay an additional $58,000 per year in salary for the new position.
The stated objective for this case is to justify the capacity of the Company to fund the salary for the new Accounts Manager position through more effective use of the Company's current assets. This objective may or may not prove to be financially feasible. Importantly, ho
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