JR is a transport company that has recently won a five-year government contract to provide rail...

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JR is a transport company that has recently won a five-year government contract to provide rail transport services. The company appointed a new Director, Laura, to take the responsibility for the government contract. She has worked in various positions in other rail transport companies for a number of years. She has put together a team of managers by recruiting some of her former colleagues and some of JR's current managers. Laura is busy for preparing detailed budgets for its first year of operations with appropriate performance targets, because she is always with the idea that developing budgets should be the important aspects to establish Management Accounting Control System (MACS). Required: a). Please identify and explain what would be the essential elements of an effective Management Accounting Control System (MACS). b). Please present your analysis regarding how to establish "appropriate performance targets" when preparing budgets, including the importance, difficulties, and possible arguments. JR is a transport company that has recently won a five-year government contract to provide rail transport services. The company appointed a new Director, Laura, to take the responsibility for the government contract. She has worked in various positions in other rail transport companies for a number of years. She has put together a team of managers by recruiting some of her former colleagues and some of JR's current managers. Laura is busy for preparing detailed budgets for its first year of operations with appropriate performance targets, because she is always with the idea that developing budgets should be the important aspects to establish Management Accounting Control System (MACS). Required: a). Please identify and explain what would be the essential elements of an effective Management Accounting Control System (MACS). b). Please present your analysis regarding how to establish "appropriate performance targets" when preparing budgets, including the importance, difficulties, and possible arguments.

Answer rating: 100% (QA)

An effective Management Accounting Control System MAC S should include the following elements 1 Budget ing This involves setting up an annual budget t... View the full answer