Classic Sanitary Wares (CSW) manufactures and sells bathroom accessories in Adelaide. CSW is facing the following market challenges and opportunities:
• CSW needs to develop some preliminary cost estimates for launching a new product – ‘Daffodil Basin’.
• CSW is experiencing increasing pressures from new competitors who are importing sanitary wares from China and selling them at cheaper prices in the Australian markets.
• CSW has been struggling in making timely and efficient decisions to survive in highly competitive post-covid 19 business environments.
Critically Discuss:
1. What management accounting tools and techniques that may help CSW to develop cost estimates for launching the new product – ‘Daffodil Basin’?
2. What may be the core features of CSW’s business strategy to effectively deal with the increasing market competition?
3. What may be your suggestions for developing an efficient decision-making framework for CSW?
Get answers on above questions on Management Accounting
Answer 1: Management accounting is an important branch of accounting that assists management with the decision making purposes. There are different management accounting tools and techniques that can be utilised in order to estimate the cost of launching a new product. In the given case scenario of Classic Sanitary Wares, this specific management accounting techniques that can be utilised in order to estimate cost include account analysis, high low method, scatter graph method, regression analysis etc.
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