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XYZ is a local Sydney based company. It manufactures cricket bats, balls and other accessories. It has experienced sales growth over the last 7 years. The company has implemented several automated systems in its assembly plan and employs a sales, technical specialist, cost, production and engineering managers. XYZ has supply chain relationship with several local, inter-state and internal companies for manufacturing bats, balls and accessories. During early 2020 XYZ experienced a major dislocation of its operation due to Covid-19 pandemics across the globe.
Required Problem 1: As a Management Accountant, what would be your advice to the company management during the COVID-19 pandemic when making budget decisions?
Problem 2: What is the primary information needs of each manager during this period?
Problem 3: Explain how economic trends due to the COVID-19 pandemic may impact on the sales forecasting of the company.
Problem 4: Explain how supply chain relationships need to be considered when making budget decisions along with costing implications.
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