You are the management accountant at Xero Ltdand have been trying to persuade your boss, thefinance director, that your role should change. Youhave read about Burns and Scapens' report'Accounting Change Project' and think that itsuggests an interesting change from your currentroles of preparing and reviewing budgets andoverseeing the production of management andfinancial accounts. Your boss is sceptical but iswilling to listen to your arguments."a. “Explain the changes and what is driving thesechanges in the role of the management accountantbased on Burns and Scapens work.""(Maximum word count: 500 words)"

The traditional role of management accountant had revolved around the contour of a) planning i.e.,…

Answered: You are the management accountant at…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 6TP: The management of Hess, Inc., is developing a flexible budget for the upcoming year. It was not...

See similar textbooks

Similar questions

Suppose that the controller of your companys largest factory is a particularly optimistic individual. If you were in charge of developing the master budget, how, if at all, would you be influenced by this knowledge?
As the CEO of a relatively new and fast-growing start-up, you and your management team have previously emphasized technical and marketing innovation and creativity over planning and budgeting. But now with growing competition and the maturing of the company’s products, you recognized that a culture of better financial planning must be established if the company is to succeed in the long run. You feel that the financial staff have the best expertise and understanding of the business to prepare effective budgets, but you are concerned about the motivational effects of excluding the lower management for the process, please give me advise. How would you suggest the company implements a financial planning culture. Be specific, include details of how and who would be part of the budgeting process. What kinds of budgets would be developed and what systematic process would you suggest?
Assume that you are the CEO ofa bank and your CIO comes toyou with a proposal that willrequire doubling the budget forIT (from 7% of revenue to 14% ofrevenue) to be able to cope withFin Tech disruptions. What wouldyou do and how would you justifyit?
Which one of the following is not considered to be a benefit of participative budgeting? When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations. Managers are more motivated to reach the budget goals because they participated in setting them. Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization. The budget estimates are prepared by those in direct contact with various activities.
: The chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. As the management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines For senior managers. In preparing your report you should consider the behavioral consequences of using budgets in planning and control
Management accountants must try to implement systems that are acceptable to budget stakeholders to produce positive effects. Now, as a management accountant, choose three (3) negative attitudes, explain them and write yourr ecommendations on how you will address these negative attitudes from a management’s perspective. It couldi ether be a policy that the management will implement or an action that will be undertaken by management to counteract the negative attitude.
the chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. as teh management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines for senior managers. In preparing your report you should consider the behavioural consequences of using budgets in planning and control
Is it important for a company to follow a strict budget even though they may be experiencing phenomenal profits? Do you think that there will be a bias towards greed when creating the budget for this company? Explain. How does management greed influence budget decisions? Please consider each of the questions separately in this post. It is important for you to understand the value of the budget as a blueprint for the business – even in times of exceptional “good news”. It is also important to consider the role of greed within the budgeting process of the firm. Perhaps you might want to think about the budget as a communication to employees about what ownership and management believes is its focus. You might even want to see if any other of the exceptional “bad boys” in the business world were reflecting their greed even within their budgeting documents.
You are finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and you have been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. You study the report, conduct appropriate research, and assess the costs involved. You conclude that it will be necessary to increase staff costs, but you believe these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or…
You are finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and you have been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. You study the report, conduct appropriate research, and assess the costs involved. You conclude that it will be necessary to increase staff costs, but you believe these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or…
You are finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and you have been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. You study the report, conduct appropriate research, and assess the costs involved. You conclude that it will be necessary to increase staff costs, but you believe these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or…
CASE DISCUSSION Wambui had been managing the budget department for Faida Bank. Because the work experience gained here was useful, much of the budget analysis work done in the department was performed by a group of management trainees. The trainees tended to be recent college graduates who were ambitious; they expected the budget work experience to be the pathway into the prestigious auditing department. Wambui managed under the assumption that by maintaining an open-door policy her employees would bring any problems to her attention. As a result, she remained in her office and seldom met with the trainees. Instead she would peruse the budget reports they submitted and return them to her secretary without comment. The reports often bore numerous errors which the trainees would be expected to make but which Wambui’s quick persual of the documents did not catch. The department heads throughout Faida Bank who received the erroneous reports would complain directly to the trainee who…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS