Q1. MANAGEMENT ACCOUNTING, FINANCIAL MANAGEMENT ENVIRONMENT AND ROLE OF ACCOUNTING INFORMATION IN MANAGEMENT ACCOUNTING

Total marks for this question: 15 marks

[Suggested time: 27 minutes]

"Managers use cost and management accounting information to help them make different types of decisions. These include developing organizational strategies, creating operating plans, and monitoring and motivating organizational performance" (Eldenburg, et. al., 2020:2)

Read the following news article and answer all the questions that follows:

November 1st target for international travel

Edwin Nand

AUGUST 31, 2021 4:50 AM

Fiji will resume international travel in two months, earlier than the anticipated December target.

Prime Minister Voreqe Bainimarama has confirmed duringRadio Fiji One's "Nai Lalakai"programme that the new timeline has November first as the date for re-opening borders.

Bainimarama says this is based on recent developments locally and abroad, and the government is confident it can be achieved if we stick to the plan.

"You must have heard that Qantas has announced its international restart plan for December where they have to include Fiji, this has given us the confidence to open our international border by the 1st of November this year."

It's the first time a definitive date has been set for resuming commercial international travel since flights were canceled in March 2020.

Minister for Tourism, Faiyaz Koya says the goal post has moved forward thanks to the success of the vaccination campaign.

"So that's the target we've set now and it bases itself on the success we've had with the vaccination campaign".

Re-opening borders will be a lifeline for more than 100,000 people employed directly or indirectly in the tourism sector, Tourism Fiji Chief Executive Brent Hill says international airlines have recognized Fiji's vaccination efforts.

"Companies like Qantas and Australians wouldn't be coming to Fiji, and saying they're going to come here unless they saw out vaccination numbers".

Commercial travel has been closed for more than a year now, during which time many small tourism operators have had to shut down permanently.

https://www.fbcnews.com.fj/news/covid-19/november-1st-target-for-international-travel/

REQUIRED

1.Briefly explain the usefulness of managerial accounting and financial accounting in resuming the flights.(4 marks)

2.If Fiji Airways resumes flight on 1^st November, discuss the type of organizational strategy it has to implement to effectively compete in the market. Your discussion must clearly identify the activities Fiji Airways has to undertake on the chosen strategy.(3 marks)

3.Identify TWO financial and TWO non-financial management accounting information for Fiji Airways to resume operation by 1^st November.(2 marks)

4.Assuming the role of the management accountant,

(i)Identify the appropriate cost object implicated in the case above(1 mark)

(ii)Suggest one cost driver. (1 mark)

(iii)Justify your choice of the cost driver.(2 marks)

5.Below is a value chain of a 'typical' service organanisation.

Value of services

Assuming the role of a management accounting of a Hotel in Fiji,

(i)Identify two value added activities of the Design activities

(1 marks)

(ii)Identity two non-valued added activities of Customer support

(1 marks)

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