Nov 2019 Q3 a.
The role of Management Accounting is to assist managers at all levels of management (Strategic, Tactical and Operational) of an organization in decision making.
Required:
i) With examples from a manufacturing company, identify FIVE (5) features of information that is provided at the operational level of management. (10 marks)
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Features of Operational Information:
- Detailed information.( Production schedules)
- Mainly quantitative. (Payroll sheets)
- Internal sources.( Stores ledger cards)
- Relates to immediate term. (current or previous week)
- Prepared frequently. (daily production reports)
- Task specific. (maintenance reports) (Any 5)
ii) State TWO (2) features of a control system that is used at the tactical level of management in a commercial entity. (5 marks)
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- There should be a target set.
- Actual performance is measured
- Actual is compared with targets.
- Variances are analyzed and corrective action taken. (Any 2)