Fashion Readymade Garments Company is a premier garment unit based in Muscat. They buy cloth in bulk quantity, stich various dresses and sells it in the market. The company is currently planning for a change in the operational side. The management found that the wastage of clothes is more in the production process and it is resulting in higher cost of materials. Also, the time taken for stitching clothes also is high, compared to similar companies in the industry. The management is planning to introduce SweBot, which is an automated sewing machine. This will reduce the cost of labor and also reduce the wastage of clothes. It is also estimated that SweBot can produce clothes at a faster rate, since it is automated.

SweBot’s system uses a highly calibrated machine vision to watch and analyze fabric. It detects distortions and robotically adjusts the fabric. Working across a 70-foot long t-shirt production line, the robot performs each task, including cutting, sewing a seam, adding a sleeve, and quality inspection. Each step of the way, the computer vision guides the fabric.

The implementation of new technology, however, requires capital investment. In the first year of operation, Fashion Readymade Company calculates that the implementation of SweBot reduce the cost of materials by 10%. It is expected that the cost of machinery can be absorbed by the reduced cost of operations in a period of 4 years. However, the introduction of this technology also means that the tailors who are currently employed should be either terminated or assigned some other tasks.

In order to verify whether the savings by implementing a new technology is significant, the Fashion Readymade Garments Company decided to conduct a research. The focus of the research is to examine how the same technology did influenced the garment industry in other countries. The management accountant was asked to conduct the study. While preparing for the study, the management accountant decided to select the GCC market and classify the number of readymade garments company in each country. He fixed the number of companies in each country to be included in the same, and later contacted the selected companies via email. A questionnaire is used to collect feedback from these companies.

Based on the above case, answer the following questions.

Question No. 1
a. Briefly explain the role of management accountant in the above case. (The answer should explain the functions of management accountant).

b. Do financial accountant and cost accountant have a role to support management in the above case? Explain.                                                                                      

Question No. 2

a. What type of information is required for the junior level, middle level and top-level management in the above case, for decision making?

b. Briefly explain the sampling method used in this study.

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QUESTION NO 1 a The management accounting system provides highly useful economic and financial data to the management A channel is used to transmit the information efficiently and effectively that cha... View the full answer