Reference no: EM13583234

Part a.

"Standard Costing and Variance Analysis are appropriate to any type and size of organisation". Critically evaluate this statement, indicating whether you agree with the statement or not.

Part b.

A Strategic Management Accountant (SMA) uses cost and income data in a number of different decision making scenarios. Four such scenarios are:

1. Shutting down or keeping open part of the business;
2. Pricing products or services;
3. Product mix and limiting factor analysis; and
4. Make or buy decisions.
For each of the above four scenarios, you are asked to

a) Critically evaluate and discuss what the relevant costs and income would be, to enable the SMA to reach a decision; and
b) Discuss and comment on any qualitative factors that might need to be taken into account in reaching a decision.