Service industries provide different challenges for management accounting than do manufacturing industries.

Question

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Service industries have unique characteristics such as intangibility, perishability, and variability of services that require different approaches to management accounting. Managers in service industries need accounting information to make decisions about pricing, resource allocation, budgeting, and performance evaluation. They also rely on accounting information to measure customer satisfaction and loyalty, identify opportunities for innovation, and manage risks.

Answer: A

In a decentralized organization, the role of the management accountant is to support business unit managers in making informed decisions by providing them with relevant and timely accounting information. This includes preparing budgets, forecasting financial performance, analyzing costs, and evaluating the profitability of different products, services, or business units. The management accountant also plays a key role in designing and implementing performance measurement systems and ensuring compliance with accounting standards and regulations.

Answer: A

Emerging issues in management accounting include the increasing importance of services as a source of competitive advantage, the shift towards managing for value rather than cost cutting, the need to integrate sustainability considerations into business decisions, and the increasing focus on corporate governance and ethics. These trends reflect the changing nature of business environments and the need for management accountants to adapt their skills and knowledge to new challenges and opportunities.

Service Industries Provide Different Challenges for Management Accounting Than Do