ANSWER: A dry cleaner's will be interested in monitoring all aspects of performance. It may prepare performance reports on materials and labour usage, as well as on meeting revenue targets. It will want to keep track of things important to customers, turnaround time, customer satisfaction, types of complaints and requests for auxiliary services (i.e., delivery and tailoring). It may keep records about the characteristics of customers (i.e., profession, residence, age) to better understand their market. It will be interested in efficiency and productivity of labour and equipment. It might monitor the usage of capacity. It will be interested in reporting on all aspects of performance.
54. Describe a cost management information system, its objectives and major subsystems.
ANSWER: The cost management information system is an accounting information subsystem that is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.
The objectives are as follows:
1.To provide information for costing out services, products and other objects of interest to management.
2.To provide information for planning and control.
3.To provide information for decision-making.
The major subsystems of a cost management information system are the cost accounting information system and the operational control information system.
55. Identify the trends impacting management accounting and discuss the implications for management accounting.
ANSWER: Changes in the manufacturing environment, brought about by the implementation of JIT manufacturing, increasing quality requirements, product diversity, diminishing product life cycles, automation and advances in information technology, are having a significant influence on the management accounting environment. Many traditional management accounting practices will be altered because of the revolution taking place among many manufacturing firms. Deregulation and growth in the service sector of our economy are also increasing the demand for management accounting practices.