Australia Food Ltd is a company with several branches across Victoria and NSW…. 1 answer below »

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Australia Food Ltd is a company with several branches across Victoria and NSW. The Company
produces various food products including meats and milks. You work as a management accountant in
this company.
Your manager has asked one of your colleagues in the management accounting department to
prepare a comparative profit or loss report for the current and previous month. The manager wants
the report to cover only meat production in Victoria’s branches. Your colleague suggests that since
the company has different branches and products, financial statements should cover all of the
company’s activities. He also suggested that the report should be prepared for a financial year in
accordance with accounting standards.
Using your knowledge of financial and managerial accounting, general and specific purpose financial
reports and various users of accounting information, advise your colleague as to the approach they
should adopt to meet the manager’s requirements and ensure the information correctly reflects the
department’s operations.

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