QUESTION TWO

d$)$ Illustrate how Management accountant can help to turn around the fortune of an organization by using the following key function of a management accountant:

i$)$ Planning $(3$ Marks$)$

iii$)$ Internal control $(3$ Marks$)$

b$)$ Discuss the advantages which may be claimed for Kaplan and Norton$$s balanced scorecard as a basis for performance measurement over traditional management accounting views of performance management. Your answer should include specific examples of quantitative measures for each aspect of the balance scorecard. $(6$ Marks$)$

c$)$ The introduction of improved quality into products has been a strategy applied by many organizations to obtain competitive advantage. Some organizations believe it is necessary to improve levels of product quality if competitive advantage is to be preserved or strengthened.

Required;

Discuss how a management accountant can assist an organization to achieve competitive advantage by measuring the increase in added value from improvement in its product quality

$(4$ Marks$)$

d$)$ The following relates to Sauti productions ltd

Budget to June

Actual to June

Production in units

Materials in Shillings

Labour in shillings

Fixed Overheads in Shillings

$400,,000$

$440,000$

$180,000$

$25,400$

$640,000$

$570,000$

$125,000$

$25,400$

Required:

Flex the budget to the actual levels $(2$ Marks$)$

e$)$ It has suggested budgets and standard cannot motivate unless budget holders participate in the budget and standard setting process. Discuss the argument for and against involving budget holders

$(2$ Marks$)$