Monash Ltd has always had a strategy of product differentiation; that is, providing high-quality products and extracting a price premium from the market. During the recent economic downturn, Monash Ltd has seen its customer base diminish, and has decided to move strategically to a cost leadership strategy, that is, to try to sell more products at a lower price.

(a) What are the implications of this strategy change for the financial reporting cycle? (LO1)

(b) What changes would you expect to see in the financial reporting cycle? (LO4)

(c) What are the implications of this strategy change in terms of the usefulness of historic transactional data for decision making? (LO3)