Reference no: EM132638267

Problem 1) Define management accounting and describe the key components of the management accounting system.

Problem 2) Explain how the various components of the management accounting systems can be used to help manufacturers face the challenges brought about by the pandemic.

i) Collapse of demand due to locked-down imposed by the government.

ii) Supply shortages and increased prices - Until affected factories can resume production, manufacturers will need to rely on inventory stockpiles. However, these resources are limited and will run out eventually. When existing inventory runs dry, shortages and/or price increases will occur throughout supply chains if alternate sources aren't secured.