Question: "As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively." Explain how management accountants can play a role in helping management meet these challenges.
Requirements-
1. Highlight challenges that companies are facing (Product Diversity, Quality services, etc..)
Discuss some of the areas in economic sense that companies have to deal with
Customer Sovereignty - The needs and wants of customers
Privatisation giving rise to more competition
Government intervene on areas of regulations that pose a problems to companies
Tight control of labour - making labour costly and the impact on industries which are labour intensive
2. Discuss the increasing global competition
Give realistic figures like GDP growth in Singapore context
Reason for such increase in global competition
Impact on local companies
Increasing the market share; having a greater market share
3a. How to attain higher levels of productivity
Through the use of contemporary management tool and accounting
Such as ABC, TQM & Evaluating environmental costs
Cross subsidisation
Through what means? Discuss about technology, training, education, people & efficiency
Product being produced at lower cost makes it more price competitive
3b. Discuss & give real life examples on the service & product line
How does increase in level of productivity value-add to pricing in the two different industries
4. Challenges that accountants are facing and affecting their contribution to the company
Discuss about their roles in helping to overcome these adversities
5. Limitations/ Critiques about ABC
Attachment:- ABC Report.rar