Advanced The new manufacturing environment is charac¬ terised by more flexibility, a readiness to meet customers’ requirements, smaller batches, contin¬ uous improvements and an emphasis on quality. In such circumstances, traditional management accounting performance measures are, at best, irrelevant and, at worst, misleading.

You are required:

(a) to discuss the above statement, citing specific examples to support or refute the views expressed; (10 marks)

(b) to explain in what ways management accoun¬

tants can adapt the services they provide to the new environment. (7 marks)

(Total 17 marks) CIMA Stage 3 Management Accounting Techniques