Kyungdong University Global Campus Department of International Business Administration Managerial Accounting

Cost leadership, Cost efficiency or Operational Excellence is where the company wins through delivering better value and reliability. Actually, cost leadership says about himself in the word, which means that a cost of product would be better choice that other products, it’s optimizing the process of cost efficiency. So, if your company using the strategy of cost leadership or operational excellence, your company can win through delivering better value and reliability and also run very efficient lean processes with reliable quality and dependable delivery. Examples of companies which are using operational excellence – Walmart, Maersk, Vodafone, Dell.

Product Leadership is where the company wins through having differentiated product functionality. Is more about introducing different products, which will have ability to maintain certain monopoly power. Obviously that companies which using product leadership could win through having differentiated product functionality, and they are also could reduce superior time products due to a technology or know-how edge. And here we have some examples of companies which using product leadership – Samsung, Google, Time Warner and Tencent.

Q4.

We have here three guidelines which helps to managers/accountants to make or just provide the most value to operational and strategic decision-making of companies.

Here is we have three guidelines such as cost-benefit approach – which purchase should exceed costs as a basic decision rule. Actually, cost-benefit-approach depends on the intent of maximizing the absolute level of benefit, and with intent of minimizing the cost-benefit ratio regardless of absolute level of cost. And also, costs must be limited to certain level.

The 2^nd guideline is the behavioral and technical considerations – actually organization not about only money or production of good, it could be about people, and this case we should know how a people are going to feel about decision which you made in your company, for example we’d like to decrease salary of workers or day offs, and you should know how people will accept this decision, you have to analyze how it will effect on motivation of your employers. A management accounting system also should help managers make wise and good economic decisions and help to managers with aiming for goals of the organization or company.

The 3^rd guideline in the Different Costs for Different Purposes – in short sentence it’s the cost that are relevant in one decision situation which may not be relevant in another context or product costs can include upstream, manufacturing and downstream costs. Also, managers’ need for product cost information will vary depending on the type of decision to be made and managers’ personal preferences.

Q5.

So, actually I have a business with YouTube channel where I’m earning money because of my videos which is interesting to subscribers and watchers. My channel was quite popular, in the comedic parodist part of in-depth reviews of next generation games. I had 100k subscribers on my YouTube channel. Everything was fine before I encountered the problem...

1. 
   The main problem is the emergence of a competing channel with the same content as mine, but with more interesting effects and a microphone.
   
2. 
   I found a lot of information about my competitor, who used more microphone sound and good effects, which took away part of my audience.
   
3. 
   Probably, I will lose most of my audience if I don't make decisions about this. There is a great chance that I can lose 30 percent of my subscribers in the YouTube channel.
   
4. 
   I have two alternatives that might be useful - buy more ads and promotions, or buy new equipment for my channel to achieve more honesty in video or sound quality, as well as increase the quality of my video effects and I chase 2^nd question.
   
5. 
   I implemented the second option, in which I had to buy new video equipment and other devices to improve the quality. As a result, the second choice was more correct as people need good content the most.
   

1. 
   Competence - He was originally supposed to give a report that there are old and obsolete stocks in the inventory. And also, the principles of accounting require the write-off of obsolete stocks. Integrity - Sujan had to refrain from any action that might prejudice the ethical fulfillment of his duty as well as refrain from action, his profession. Confidentiality - he had to communicate accurate information honestly and objectively.
   

2. 
   I think that it wouldn’t be ethical because in this case, I think that hiding obsolete inventory reduces the objectivity and relevance of financial statements.
   

3. 
   Taking ethical action will require a lot of courage and self-confidence. In this case, Sujan will have to insist on the entries in the outdated registry. But I don't think it's an easy undertaking in this situation.