ACC 305

Management Accounting 2

Question

Assume you work as a graduate for a large consulting firm. As part of your professional development, you have been asked to select a newspaper / magazine article (written in English) which raises management accounting problems regarding a specific organization, which require a solution. The article must be written recently (on or after 1 January 2019 and taken from an appropriate source, such as the Australian Financial Review, The Australian, The Wall Street Journal (US), Financial Times (UK) and Economist (UK). Other sources may also be suitable - please consult your manager (lecturer) if you are unsure whether a particular source is appropriate. Analyse the issues raised by the article chosen and write memorandum (a report format will not be marked) addressed to the board of directors of the organisation chosen. Your analysis should include:

1) A reliable link and reference to the article in order that the board can identify it

2) Consideration of the management accounting issues raised by the article, including any potential strengths / opportunities as well as any weaknesses / threats identified.

3) Consideration of management accounting techniques or tools which lead to solutions / courses of action / lessons learned that you would offer to the board of directors as to how the issues identified can be tackled or how the organisation concerned can improve its performance.

4) Any other relevant matter that you believe will be of use to the board of directors The library databases (in particular Proquest via MyAthens) are a source of newspaper and magazine articles for this assignment, but you can use other means also. Please consult with your lecturer / ASC for more details.

***rerate more to management issue not financial

***I have the answer already but not enough information about Management Account ,Would you please explain more in red text that I have edited below

The referred link is:

https://themarketherald.com.au/myers-asxmyr-stock-price-suffers-as-covid-19-shuts-melbourne-stores-for-a-second-time-2020-08-05/

An article published on themarketheraldcom about the company Myer's shut down of store due to comp-19 outbreak. The article is recently published in the month of August. As per the new, the company is going to shut its store located in Melbourne for the second time. The share price of the company is dropping day by day as there is an unrest among the shareholders. Financial Perspective, balanced scorecard, customer perspectives, satisfaction gate; Employee impact? The retail stores was, earlier closed in the month of March with a planning to re-open it after two month. However, again a lockdown was announced by the local government and stores are again going to be shut down. It is expected to the company will keep its online store open for the online orders so that it can compensate the offline business. As per the article, the management has not updated the shareholders on this issue yet. It is the responsibility of the management to keep the shareholders updated of the situation so that the unrest among the shareholders may be reduced. Here comes the role of the management accounting in such situation. The management accounting department has the capability of identifying the impacts of such shut down and how to compensate it with the other segment of the company. Benchmarkingtinternal] Since, the decision to shut down the stores is taken because of the lockdown announced by the local govemment, it is not in the hands of management accountant to plan something which can raise the revenue of the business. However, identifying all the possible opportunity to cut down the cost and improve the income is the area of management accountant which needs to be fully capitalised. Benchmarkingtexternal} The management accountant must observe all the xed cost which will still be incurred after shutting down the retail stores. Now, the management accountant must identify all those costs which can be eliminated or reduced to some extent. Any possible action must be taken to eliminate or reduce the xed cost. Apart from this, the running segment like online stores, etc. should be promoted aggressively in this period to increase the revenue from this segment. non-value-added cost, eliminate, value engineering Apart from this, management accountant can also prepare interim nancial statements for the internal purpose so that the situation can be assessed in a better way. Shareholders must also be updated on a positive note to decrease the unrest among them