1. Discuss how accountants at Marmon can act as internal consultants?
Marmon is a diversified company in terms both product mix and geography. Product diversity implies that Marmon, as a company, has a complex cost structure that varies across product lines. Product diversity also implies that the factors that affect the development and implementation of strategy vary across product lines. Geographic diversity at Marmon exists in within the contexts of both production and sales/distribution. Geographic diversity also affects cost structure and strategy development.
Internal accounts at Marmon are in a position to acts as analysts and advisors in product decisions, product strategies, and product distribution because they have access to and familiarity with the data, the analysis of which can lead to improved decision-making at the company. Accountants also have the analytical tools that will allow them to assess the available information in ways that will allow them to function effectively in an internal consultancy capacity.
2. What kind of background and knowledge would an accountant require to be an effective internal consultant?
Management accountants already possess the necessary basic skills to allow them to become internal consultants for a company. In addition to these basic skills, however, management accountants need to (a) broaden their knowledge of the business of the company and (b) change their orientation from that of a cost accountant to one of a strategic thinker.
With respect to broadening their knowledge of the business of the company, management accountants must explore both the internal functioning of the company to embrace concepts beyond debits, credits, and ratios, and they must develop a comprehensive understanding of the external environments within which the company does business.
3. Describe the ways in which information gathered by accountants at Marmon and other corporations is use...