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Question - Five-Star Company manufactures a line of electric fans. It has experienced sales growth over the last 7 years. The company has implemented several automated systems in its assembly plan and employs a sales, technical specialist, cost, production and engineering managers. However, during early 2020 Five-Star experienced a major dislocation of its operation due to Covid-19 pandemics across the globe. Throughout the Covid-19 lockdown period the company suffered major issues such as production disruption, decline in sales and profit margins.
Required -
a) In an effort to manage during and post Covid-19 period, the CEO wants to form a multidisciplinary team to review a recovery analysis after the pandemic is over. What areas of the company should be represented on the team? How would each of the team contribute to the cost and recovery analysis?
b) You are asked to identify each element of the product value chain for the electric fans. What changes do you suggest with each level of value chain both during and post Covid-19 period?
c) Has the lock down during the Covid-19 period affected the company's need for management accounting information?
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