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You are the management accountant of DreamSleep Ltd, a medium sized firm that manufactures spring mattresses. The company has a factory and head office at Wagga Wagga, 3 showrooms in NSW and 2 factory outlet stores in Victoria. The management team is made up of the; CEO, Factory Manager, Human Resource Manager, and yourself. The CEO has asked you to show a report to clarifying the management accountant's role in the organisation and the type of information that management accountants use to make short term decisions.
Required:
Report to your manager detailing following:
Problem a) Produce two examples of management accounting information that could help management when making each of the following decisions:
(i) The Factory Manager is deciding whether to buy an additional delivery truck.
(ii) The Factory Manager is deciding whether to have routine maintenance performed on a machine weekly or fortnightly.
(iii) The manager of the showroom is deciding to employ one additional customer service staff to help in the busy season of the year end sale.
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