Read the text of each case study (set out in the box at the beginning of each case) and then make a note of the way in which you think management accounting may help each person. Compare your answer with the discussion which follows each case.

Case Study 1.2

The UK won’t meet its targets on renewable energy if offshore wind farm costs continue to spiral, the government has been warned. Centrica said the chance of making any money from wind farms being set up around the British
coast were now only slim. Rising prices for raw materials, particularly steel and copper, had pushed up the prices being demanded by the handful of companies who make the giant turbines for the offshore fields. Centrica said it would continue with its plans for three UK wind farms but warned that the outlook was bleak. Sarwjit Sambhi, director of Centrica’s power business unit, said: ‘The economics at the moment make the returns marginal.’

Case Study 1.3

The following advertisement appeared on the website of the National Health Service Careers section.
Management accountant working for the Commission for Patient and Public Involvement (CPPIH). This type of post will involve working closely with the head of finance, to establish systems and processes to enable the timely and accurate delivery of monthly management accounts and budget information. The post holder will be involved in the annual budget setting process, provide ongoing support and direction for the budget holders as well as investigating and reporting on variances. They will also be involved in ad hoc projects and reports, such as contributing to the five-year business planning processes. The employer in this example is looking for candidates to be an active finalist or qualified accountant with experience of delivering a financial management service. Alongside expertise in computerized finance packages and proven analytical skills, an ability to demonstrate strong interpersonal, planning and team working skills is required.