Management Accounting

Running Head: MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

1MANAGEMENT ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Problem of Singapore Airlines...............................................................................................2
Challenges..............................................................................................................................3
Solution..................................................................................................................................4
Conclusion..................................................................................................................................5
Reference....................................................................................................................................7

2MANAGEMENT ACCOUNTING
Introduction
Management accounting is the profession, which involves devising of the
management systems of planning and performance, partnering in the management decision
making and providing the expertise in the financial reporting and control for assisting the
management for formulation as well as implementation of the strategy of the organization. It
is the internal functions of the business that faces many challenges and carries several
responsibilities.Even though the focus of the management accounting is on the improving the
operations of the company, there are few problems and challenges that exist with the function
of the business. Hence, this report aims for the analysis of the problems, challenges and the
solution of the Singapore Airlines, followed by the conclusion. Singapore Airlines Limited is
flag carrier airline of the Singapore with having its hub at the Singapore Changi Airport that
was founded in the year 1972. This is the airline that is ranked one of the best airline all
around the world (Singaporeair.com. 2019).
Problem of Singapore Airlines
There are many of the problems that are faced by the Singapore Airlines. It is because
of the rising costs of the fuel as well as increased regulations, SIA is dealing with these major
problems with their own consumption of fuel as well as emissions of carbon.In the recent
years, the industry of aviation has been affected by the rising of the costs of the fuel as the
fuel contributes 40% of the total operating costs of the industry as well as with the regulations
of more emissions such as EU Emissions Trading Scheme there has been more critical need
for the airlines for improving the productivity of the fuel (Maas, Schaltegger and Crutzen
2016). There also involves delays of the flights of Singapore Airlines. Moreover, the
decisions as well as the performance of the Singapore Airlines was affected by different
external factors. As this airline is mainly controlled by the agreements and policies of
government. Therefore, this has resulted into the fact that the airline will not be able to fly to