Question 2

Accounting information is useful for decision-facilitation and decision-influencing.

In the decision-facilitating role, accounting information provides relevant information and (or) knowledge to decision makers to make informed decisions.

Accounting information can also be used to incentivise desired actions from decision makers to make decisions that are in line with maximising organizational value. This is known as the decision-influencing role.

The same piece of accounting information can be useful for both roles.

Required:

All questions are to be answered based on ComfortDelgro Corporation (Singapore)

1. Choose one functional area (e.g. production, sales, customer service etc.) and describe in detail how accounting information is used to facilitate and influence decision makings to maximize firm value.(10 marks) (Not more than 500 words)

2. Discuss on whether the quality of the accounting information you have described achieved the objective of maximizing the firm value. Your comment on the quality of the accounting information can be based on the attributes of accuracy, timeliness and cost of producing the information.(10 marks)(Not more than 500 words)

Describe in detail how accounting information is used to facilitate and influence decision makings to maximize firm value. Discuss on whether the quality of the accounting information you have described achieved the objective of maximizing the firm value. Your comment on the quality of the accounting information can be based on the attributes of accuracy, timeliness and cost of producing the information.