You are the management accountant of Zigzag, a company that manufactures retail clothing. Zigzag was established in 1980 and has been owned and operated by the same family ever since.

Despite adopting new trends in fashion, the owners of Zigzag have been reluctant to embrace new trends in management accounting. A traditional and inflexible budgeting process is followed to set financial targets which become the primary measure for evaluating and rewarding performance.

A global pandemic has hit the local economy causing a sharp decline in sales and profits, creating an uncertain future for the business and its employees. You believe now is the time for the company to adopt a more flexible and forward-looking approach.

Draw from your learnings this semester in AYB225 to provide TWO recommendations to Zigzag's management that will assist in managing and/or measuring performance during this difficult time of crisis.

Explain and justify each recommendation in relation to current operating climate that Zigzag faces and the information provided.