ROLE OF MANAGEMENT ACCOUNTANT Managers in Annovim Plc have to understand since the early 1980s a number of ‘innovative’ management accounting techniques have been developed such as activity-based tech
ROLE OF MANAGEMENT ACCOUNTANT Managers in Annovim Plc have to understand since the early 1980s a number of ‘innovative’ management accounting techniques have been developed such as activity-based tech
ROLE OF MANAGEMENT ACCOUNTANT
Managers in Annovim Plc have to understand since the early 1980s a number of ‘innovative’ management accounting techniques have been developed such as activity-based techniques (costing, budgeting, and management), strategic management accounting and the balanced scorecard. From the context of the assignment, each division is regarded as a profit centre, where the divisional managers of the three divisions i.e. candy bars, chews and other sweets will try to maximize profit in order to ensure that they obtain the minimum required profit margin to achieve their own goals of getting bonuses.
So, managers of these divisions either mark-up their prices or improvements in financial performance by sacrificing investments in the materials used, on-time delivery or tweaking with the product mix. The other way, they will try to minimize costs either through reducing the direct and indirect costs relating to their divisions. There is a possibility that the marketing department may suffer from an overpriced product of candy bars, chews and other sweets since each division is a profit centre and tries to maximize their profit. As a result, organizational goals are ignored or overlooked.