Management Accounting

Question

Mathew Anderson has recently been appointed as the chief executive officer (CEO) of a medium-sized, decentralized, national, multi-product manufacturing and marketing corporation, which employs over 6,000 people. While revenues have remained constant over the last five years, net income has decreased by over 50% in this period. As a result of this decline in profitability, the share price has decreased by 60%.

Required

Identify three management accounting techniques/tools that can be used to instruct Mathew's staff to investigate. For each technique/tool identified, explain specific benefits/improvements that can be realized. Explain how the techniques lead to this improvement taking into account which type of company Mathew works for as the CEO.