Management Accounting

QUESTION

Consider the operation of a fast-food company with many outlets throughout the country. Identify management accounting information needs for the following:

1. The manager of a local fast-food outlet that prepares food and serves it to customers who walk in or pick it up at the drive-through window

2. The regional manager who supervises the operations of all the retail outlets in a three-state region

3. Senior management located at the company’s corporate office. Consider specifically the information needs of the CEO and the COO

Be sure to address the content, frequency, and the level of aggregation of information needed by these different managers

ANSWER

1. The manager of a local fast-food outlet that prepares food and serves it to customers who walk in or pick it up at the drive-through window

a) Content

This manager also called as operation manager which he needs to manage a local fast-food outlet that prepares food and serves it to customers who walk in or pick it up at the drive-through window. Management accounting information is used in four main management functions; planning, directing, controlling and decision-making.

Planning means selecting a course of action and specifying how the action will be implemented. The detailed plan, financially and operationally must have had to be made by manager in order to run the anticipated operation. The manager needs to formulate short-term planning or operational which means time frame is 1 year or less.

Directing employees . Once planning is done the manager must ensure that the plans are in order implemented. The managers also must monitor the day-to-day activities and keep the operations functioning smoothly. They need to have the ability to motivate and direct people.

Performing operational Control. The manager needs to perform operational control for all activities that are being carried in the production process in order to ensure that the plan is being...