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Subject : Management Accounting Topic : Management Accounting practice in changing business environment & perfomance measurement system (PMS) [please made details explaination to the answer]

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Subject : Management Accounting Topic : Management Accounting practice in changing business environment & perfomance measurement system (PMS)

[please made details explaination to the answer]

QUESTION 3 A. The board of directors of Cuci Bersih Sdn Bhd which, supplies industrial cleaning services, believed that its traditional management style was the critical success factor since it was founded ten years ago. This was due the sufficient capital resources flowed in the business, allowing the company to maintain its rate of expansion. However, recently the management has found out that its turnover and profit have fallen below the industry average and its market share has reduced. There is increasing concern among the shareholders about the long-term decline in turnover and profitability. The finance director of Cuci Bersih Sdn Bhd has quoted the performance of Masak Sedap Sdn Bhd, a similar sized company in the contract catering industry. Though Masak Sedap Sdn Bhd is not a competitor, it is often viewed as a benchmark against which Cuci Bersih Sdn Bhd can measure its performance even though it employs a different management style which requires the consent and commitment of employees. Masak Sedap Sdn Bhd has managed to increase its market share, turnover, and profitability consistently over the last five years and the finance director has turned to you (as management accountant) to analyse why Cuci Bersih Sdn Bhd seems to be producing continuously unsatisfactory results. Required: (a) Explain to the directors of Cuci Bersih Sdn Bhd how the value could be added by carrying out a program of benchmarking. (6 marks) (b) Recommend the type of benchmarking that could be undertaken if Cuci Bersih Sdn Bhd is to be compared to Masak Sedap Sdn Bhd

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