Students Number: 18312281

Students Name: Resti Novita Sari

1. How can management accounting information roles help the manager in formulating the
strategies? Explain and please give example.
Answer :
Making decisions between strategies is the most important part of a manager's job. Management
accountants work hand in hand with managers in formulating strategies by providing information
about sources of competitive advantage, for example, information about cost advantages,
productivity, or efficiency that companies can charge relative to competing companies or
information about price premiums that companies can charge relative to the cost of additional
features that make products or different services. Management accountants also help formulate
strategies by helping managers answer the question, for example who are the most important
customers, and how can you provide something worthwhile? How sensitive is the purchase to
price, quality, and service? Or what substitute products are on the market, and how are those
substitute products different from ours in terms of price and quality?
2. How can the management accountants help improve quality and achieve timely product
deliveries? Explain and give example.
Answer :
Management accountants can help improve quality and achieve timely product deliveries by
recording and reporting an organization's current quality and timeliness levels and by analyzing
and evaluating the costs and benefits, both financial and nonfinancial—of new quality initiatives,
such as TQM, relieving bottleneck constraints, or providing faster customer service. Total
quality management (TQM) is a philosophy in which management will improve operations along
the value chain to produce products and services that exceed customer expectations. TQM
includes designing products or services to meet the needs and desires of customers, as well as
making products with zero (or minimal) damage without residual and low inventory.
Management accountants evaluate the cost and revenue benefits of implementing the TQM
program.
Time has many components. When developing new products is the time needed to develop until
bringing new products to the market. The faster technological innovation causes shorter product
life cycles and increases the need for new product launches to market faster. Management
accountants measure the costs and benefits of the product during its life cycle. Customer
response times indicate the speed with which the organization responds to customer requests. To
increase customer satisfaction, companies must be able to complete activities faster and more
reliably to meet the promised delivery schedule. Delay or jams will occur if the work to be done
exceeds the available capacity. To increase output in situations like this, managers need to
increase the operating capacity of congestion. The role of management accountants is to
calculate the costs and benefits of removing congestion barriers.
3. Mentions three primary function of the management accountant!
Answer :
 Planning, planning is formulating short term and long-term plans and actions to achieve a
particular end.
 Organizing, organizing is a process of establishing an organizational framework and
assigning responsibility to people working in an organization for achieving business
goals and objectives.
 Controlling, control is the process of monitoring, measuring, evaluating and correcting
actual results to ensure that a business enterprise’s goals and plans are achieved. Control
is accomplished with the use of feedback.

4. Key Success Factors. Tangerine Industries Construction provides construction services for
major projects. Managers at the company believe that construction is a people-management
business, and they list the following as factors critical to their success:
a) Hire external consultants to implement six sigma principles in the company for sustainable
quality improvement
Answer : Cost and efficiency and sustainability
b) Benchmark company’s total costs of projects with its major competitors so that errors and
wastages are minimized
Answer : Cost and efficiency
c) Carry out a training need analysis of the existing employees and train them accordingly
Answer : Efficiency and time and quality
d) Use modern tools and machineries so that cost of construction goes down and overall quality
improves
Answer : Innovation and cost and efficiency and quality

5. Identified the value chain and classification of costs below, Lalaland Computer incurs the
following costs:
a) Electricity costs for the plant assembling the Foxpro computer line of products
Answer : Production
b) Transportation costs for shipping the Foxpro line of products to a retail chain
Answer : Distribution
c) Payment to Harley Davidson Designs for design of the Armada Notebook
Answer : Design of product and process
d) Salary of computer scientist working on the next generation of minicomputers
Answer : Research and development