Question-

The forecast for the financial year 2013/2014 shows there will be a significant increase in the number of conferences that Boutique Catering will need to prepare meals for. The general manager is concerned that she will need to double the staff numbers to allow for such an increase. She has mentioned that because of the learning curve phenomenon it will be too difficult to accurately budget for the expected increase.

Required:

a) Explain to the General Manager what the learning curve is? In your explanation make reference to the two variant methods. Include in your response the conditions under which a learning curve could be used to assist in forecasting for future operations.

NB: To respond to this question you will be required to research beyond the prescribed textbook

Question -

The decision making process is a series of steps or stages that we work through to make a choice from an array of alternatives. Making decisions is an important role that management accountants need to undertake in their position. Explain the utility curve with reference to the three perceptions of risk. Which of these best describes your attitude toward risk? In your role as a management accountant explain how your choice may affect your decision-making process and behavior.