MANAGEMENT ACCOUNTING ASSIGNMENT

Five-Star company manufactures a line of electric fans. It has experienced sales growth over the last 7 years. The company has implemented several automated systems in its assembly plan and employs a sales, technical specialist, cost, production and engineering managers. However, during early 2020 Five-Star experienced a major dislocation of its operation due to Covid-19 pandemics across the globe. Throughout the Covid-19 lockdown period the company suffered major issues such as production disruption, decline in sales and profit margins.

Required:

1. As a Management Accountant what would be your advice for managing its operation during the Covid-19 period. Please specify some of the measures needed as a survival strategy during the lockdown period along with cost implications.
2. Has the lock down during the Covid-19 period affected the companys need for management accounting information?
3. You are also asked to advice company management on a recovery strategy after the pandemic is over.

STRUCTURE

1. Brief introduction 100 words

Should describe the purpose of the task

2. Background 200 words

Should include a brief description of business facts (only the facts that will help you to make your recommendation) and a discussion of the issues identified.

3. Findings up to 1,000 words

Should answer the required questions under this heading; discuss your findings with reasoning

What are the other items of information that will help you to make your recommendation (can come from any source). State what they are and give a brief reason as to why you chose these (with references).

4. Analysis and recommendations 600 words (5 marks)

Analyse your findings with strategic implications

Provide your final recommendation and provide a brief justification