MN2406K: You have been working as a junior management accountant, as well as Yoga instructor, for a new and rapidly growing outsourcer company ‘Care About Employees Ltd’ (CAE): Managerial Account, UOL, Singapore

Requirement

Send a responding email as requested. As a guide, for each question in the email below allocate the following amount of time:
Question 1- 21%
Question 2- 50%
Question 3- 29%

Generic or AI generated answers will only attract a limited number of marks so
ensure you refer to the scenario and specifically answered the question.

Background

You have been working as a junior management accountant, as well as Yoga instructor, for a new and rapidly growing outsourcer company ‘Care About Employees Ltd’ (CAE). CAE provides health services and sessions for their corporate client’s employees. CAE’s skilled workers travel to the client sites and offer the clients employees booked health and welfare sessions which is subsidised by the client.

These services include physiotherapist sessions, group yoga sessions, personal training sessions and health massages. You have been working there for a year and you have been involved in producing and explaining management accounting deliverables. It is Monday morning, and you log on to see the following email from your line manager and CAE co-owner Rishi Patel.

“Dear Management Accountant, I hope the new client yoga sessions went well last week. I read the fantastic feedback.

Anyways on to the next clients! I am writing to ask for some help on the following as I know you are more knowledgeable in management information than I am.

Question 1. Firstly, I wanted to get your thoughts on the following: We have been asked to provide the clients with sessional reports after each employee we see on site: The reports will describe the employee’s ailments as well as detail the specific sessional information we have delivered. We do not have a vast amount of time to do this as we get paid hourly and need to maximise the use of our time spent moving to different client bases and seeing the client’s employees. One suggestion from our new graduate personal trainer Bailey, is that we could feed the ad-hoc employee sessional meeting notes along with employee details into an AI tool and ask it to provide sessional professional reports that we can deliver back to the client quickly. Could you tell me if you think this will work?

Question 2. We have been approached by a big new client to provide a preview day of yoga workshops and optional massages so they can see how we work and if this benefits their workplace. They have been very clear, if they like us, they will aim to use us regularly across five of their business sites – which is a huge win! Thus, we have promised to provide them this preview day at a low price, making sure we cover only our relevant costs but that is it. Could you look at appendix A, where I have detailed all the usual costs we have on these days and explain which costs would be relevant and which would not be relevant. Can I be clear, a list of costs saying relevant or not, will not be helpful. I need good explanations using relevant costing knowledge and terminology around those we have included and not included to come up with the total cost and thus a low price we should charge.

Question 3. Finally, as we are currently short on physiotherapists, I had asked Muhammad, our strategist, and resident Pilates teacher, to provide an analysis (Appendix B) on what services to try and focus on selling. This is a short-term problem as we aim to hire soon. We were set to meet today however Muhammad has had to stand in with a client last minute. Consequently, could you quickly calculate and then properly explain the production plan of the three services reviewed in appendix B: Hot stones treatment, sports massage and Facial.