Question

The new CEO of Sena Manufacturing company ltd, with a labour force of 250 workers and six
functional departments, had undertaken scoping operational assessment of the company in the
third week of his resumption and in his initial assessment and view, he argues that maintaining
both Cost Accountant and Financial Accountant amount to duplication of functions and waste
of scare resources of the company. You are required as the current Cost Accountant with
the company for over seven (7) years, submit in a memo, strategic role you are discharging
in the company.
A

Answer 1

MEMORANDUM

To: Mr. Robert Smith

CEO of Sena Manufacturing Company Ltd.

From : Niki Mark

Cost Accountant of Sena Manufacturing Company Ltd.

Date : XXXXXX

Subject : Need of Financial and Cost Accountant

Sir, It has come to my notice that If company maintain both cost and financial accountant simultaneously, it

amount to duplication of function and waste of scare resources as observed by you. In this regard, I want

to state that as I am a cost accountant since 7 year, my role is not include financial accounting and financial

reporting and the same is done by financial accountant.

As a Cost Accountant, my job is related to costing, budgeting, MIS, Cost Audit, etc. which is quite different

than financial accountant. Where financial accounting work is not only limited to financial preparation and

handling statutory audit, cost accounting work is also not limited to budgeting and cost audit.

In view of the above, I hope added some contribution to understand the scope of work as cost accountant

and fiancial accountant.

Thanking You .

Note: Suppose new CEO name is Robert Smith and myself name is Niki Mark as cost accountant .