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Pirate Steel Company

Pirate Steel Company

PIRATE STEEL COMPANY

Background Summary

The Pirate Steel Company is in the steel producing industry that manufactures in the United States.  The Pirate Steel Company sells its products in the United States and many other nations abroad.  Pirate Steel was considered a leader in its industry and maintained high standards of achievement until foreign competition began to affect their profitability.  Though Pirate Steel has never been very cost conscience in production operations, the increases in material, labor, and other inventories has made a deep impact in Pirate Steel’s view on minimizing costs.  With an increase in production costs, the selling price of the company’s manufactured goods increased as well.  This increase in prices had to be closely monitored due to competition.  
With new regulations on production expenses, the people in production, like the foreperson and the manager, had the entire burden on them since they had to justify all repair and maintenance expenditures.  With new procedures, every work order form had to be exaggerated so that it seemed necessary for repair and maintenance expenditures.  Since the work order forms were exaggerated, the accountant found that these requests were filled with misleading information.  All

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Word Count: 954

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