Last week Presco was proud to host the Beta Alpha Psi chapter of Texas A & M University at Commerce and our own Joshua James and Jason Lyons served as tour guides and facilitators to these Accounting and Finance students. Senior accounting major JB Webb coordinated with fellow student Matthew Starek who wrote up a first hand account of the event from a students perspective. Matthew is a Senior Accounting Major and President of Beta Alpha Psi. Below is the his account of the tour in his own words.
On our tour of Presco Polymers, our Beta Alpha Psi chapter got to see the “nuts and bolts” of how a real manufacturing facility applies accounting principles and methods to its day-to-day operations. Our members thoroughly enjoyed the tour and the commentary was very thorough and relevant. Among the many concepts we were exposed to during our tour, perhaps the most enlightening were the insights into the supply chain process, inventory valuation, and the differences between the accounting for non-routine jobs versus more streamline, recurring production. Our finance majors were also interested in hearing about the debt covenants the company has with the bank as well as the amount of financing the company uses for day-to-day operations.
Other concepts relevant to our studies include the way in which the company is owned, structured, and managed, the significant community service and personnel programs the company has engaged in, and the use of current technology in the performance of audits used for bank financing.
It was very interesting to experience cost accounting firsthand in the way the company is very aware of the costs associated with each raw material that goes into the production and packaging of each product, as exhibited by our tour guides explaining the difference in cost between the white cardboard and brown cardboard used to box flags for Lowe’s.
This tour has greatly enriched our education by putting a face to the processes and concepts that we can only read about in our accounting and finance classes. Quite a few of our members are taking a newly-created cost accounting class next semester in preparation for the CMA exam. This tour will prove to be an invaluable experience for these students as they learn more about the concepts that they were exposed to at Presco Polymers.