You have been engaged as the Management Accountant for Foleo Enterprises Pty Ltd in 1989.

1. In your first meeting with James and Leon, you are asked to establish a management accounting system for the business. Describe two (2) factors that might influence the design of the new management accounting system.

2. Based on the case facts, suggest two (2) reports that the new management accounting information system should produce and explain why they would be useful.

(HINT: These should not be generic reports but must relate specifically to Foleo Enterprises Pty Ltd. Think about what information would be useful to James and Leon for the on-going decisions they need to make)

3. In the meeting, you enquire about the planning and control mechanisms in place at Foleo Fones and are informed that currently there are none. Based on the case facts, suggest two (2) plans that Foleo Enterprises Pty Ltd should adopt, and suggest a specific control mechanism that Foleo should implement to achieve each of the plans you have identified.