Company X has been engaged in the production of fizzy drinks namely Fizzers. It has captured more than $30\%$ of the market share in Vietnam and is on the

verge of expansion. Every quarter, the Finance Manager prepares the set of financial

statements and submit them to the Board for approval. Based on financial figures and

estimates, the prices of Fizzers is fixed. The Finance Manager only ensures that the costs of

production are absorbed in the pricing.

After $8$ years, a new Chairman of the Board has been recruited. The new Chairman is

mesmerized that Management accounting reports are not prepared by the Finance Manager.

The new Chairman decided to meet the Chief Executive Officer $($CEO$)$ to discuss the issues.

The CEO agreed with the new Chairman and they finally issued new instructions to the

Finance Manager to prepare Management accounting reports to the Board. The new

Chairman believes that Management information is crucial for managerial decision$-$making

based on his wide industrial experience. On the other hand, the Finance Manager believes

that Management accounting has a lot of disadvantages. Hence, this will affect decision$-$

making in X

The Finance Manager called a meeting with his finance team to guide them to prepare

Management accounting reports. The Accountant of X is now facing difficulties of big

data and analytics.

REQUIRED:

Provide convincing arguments to the new Chairman of X how a Management Accounting system will improve the current decision$-$making