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ACCA Strategic Professional · Advanced Performance Management · Strategic management accounting

Dunmore Foods has a management accounting team that produces detailed monthly cost reports but has little involvement in strategy. The CEO wants the team to act as a 'business partner' to the board. Which change would MOST clearly demonstrate this shift in role?

The clearest demonstration is management accountants taking part in strategy discussions and supplying analysis of options, risks and value drivers before decisions are made. That is proactive decision support as a business partner, unlike faster statutory reporting, audit work or more detailed historical variance reports.

  1. AManagement accountants join strategy discussions and provide analysis of options, risks and value drivers before decisions are takenCorrect
  2. BManagement accountants prepare the statutory financial statements more quickly after year end
  3. CManagement accountants carry out the external audit procedures on the cost reports
  4. DManagement accountants increase the number of variance lines in the monthly cost report

Explanation

A business partner role means contributing to decision-making ahead of events, using analysis of options, risks and value drivers. Faster statutory reporting, audit work and more variance detail remain compliance or backward-looking control activities and do not change the accountant's influence on strategy.

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