In today's society, businesses must deal with and overcome all different types of issues within their company. Many businesses could have international or global issues within the company. For example, airline companies mostly deal with international issues throughout their years. Each business handles and approaches each issues a different way trying to discover as many solutions as possible.
In June 2008, Qantas Airlines decided to take a different financial approach to help make the business more successful. The company started by reducing or altering the number of international services and make hundreds of job cuts. The company was looking to reduce their capacity by five percent, which then begin to result in the affects to eleven of their routes and more than fifty weekly flights. We then will see Qantas trim twenty-one of their services, while JetStar will begin to have a greater net income. While the company was able to dispose fifty flights, it most likely saved the Qantas a sizable amount of the company's money. These changes will tend to affect the Southeast Asian and Japanese destinations. Qantas Airlines viewed that the subdivision of Southeast Asian and Japanese destinations was becoming a non-beneficial cost. Also, these changes caused Qantas to end flights with the Melbourne Australia, to Tokyo route and leading to JetStar canceling all flights to Kuala Lupur, Malaysia, from Sydney. Lastly, The Chief Executive Geoff Dixon began to think of better solutions by believing that there will be a small number of jobs lost in Cairns and Japan. From this huge amount of employment layoffs, management of Qantas Airlines can move around personnel affected within the company by changing and motivating them into different divisions where they can help maximize the company's labor and corporation profits.
While in March of 2000, Chiquita Brands International Inc., was looking for a change towards their banana and fresh produce business. The company decided to make an estimated cut of two hundred corporate and operating jobs. And through this change, resulting in only two-hundred jobs being cut, the company should consider this a successful change because it can be considered a small amount for a company who employs about forty-thousand individuals. They then began to agree to join the North American and Europe Unit to form a single "Chiquita Fresh." By the company following those steps, Chiquita shares would tend to be involved with the New York stock exchange that rose from 18.75 cents to about $4.4 dollars per share. Cost accountants most likely will than begin to realize the big jump in money per share. The cost accountant would realize that the rise in the company's price per share shows proof that New York stock exchange could have a good amount of profitability. Eventually they would then begin to discuss with the upper level management about their cost effectiveness and showing the company's profitability.
Even though these companies tend to be on complete opposite business scales, they both tend to relate to international business issues. Cost accounting relates directly to organizing your company to eventually be able to manage cost of the company effectively. For example, if a business has a cost that is directly non-beneficial or non-probability to their business goals, that company would then begin to consider restructuring that department and eventually cutting non-essential cost out if it became necessary. Taking this approach, management will be able to move and control the things needed to be successful with each department. Lastly, management will be able to control what to do with the employees within the company to result in eventually maximize that company's labor and their corporation's profits.
Cost Accounting is shown to be used throughout all different types of business. Business try and come up with new and effective ways to use cost accounting to be successful in the long run of the company. Through these two company's activities, it shows how cost accounting is being used throughout a business, even though these two international issues occurred at different times and eight years apart. Within a business, effective management, monitoring cost and maximizing profits for are all helpful tactics for a business to follow in America and around the world.
