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Company Xerox ( Xerox ) has been engaged in the production of fizzy drinks namely Spirito since 2 0 1 1 . It has captured
Company Xerox Xerox has been engaged in the production of fizzy drinks namely Spirito since It has captured more than of the market share in South Africa 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 Spirito is fixed. The Finance Manager only ensures that the costs of production are absorbed in the pricing.
After 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 decisionmaking 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 decisionmaking in Xerox.
The Finance Manager called a meeting with his finance team to guide them to prepare Management accounting reports. The Accountant of Xerox is now facing difficulties of big data and analytics.
REQUIRED:
A Provide convincing arguments to the new Chairman of Xerox how a Management Accounting system will improve the current decisionmaking
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