41. Management Accounting
The management accountant is traditionally considered the resident expert on cost analysis; cost estimation; cost behaviour; standard costing; profitability analysis by product, customer or distribution channel; profit variance analysis; and financial analysis.
Today, management accountants must also bring skills in activity-based costing, benchmarking, re-engineering, target costing, life-cycle costing, economic value analysis, total quality management.
Required:
Critically examine the above statement in relation to the survival of a business entity in a competitive global business environment.
Coursework Guidance
Students should evaluate the traditional role of the management accountant in an organisation using the traditional cost analysis techniques. Reasons should be advanced as to why the traditional techniques alone may not be adequate in the competitive global business environment. Students should thereafter analytically examine the specific role the management accountant ought to be performing in today’s competitive global business environment using modern techniques.