Different kinds of issues can be seen in the process of management accounting. In the provided situation, it can be seen that Australian-owned rental chain Video Ezy is withdrawing their business operation from New Zealand. From the case study, it can also be seen that the companies in this industry are not able in coping up with the increased cost of this business. This whole situation indicates towards one major issue in management accounting that is adaptability (Groot & Selto, 2013). It needs to be mentioned that the business organizations are required to be adaptable with costing techniques under management accounting for carryout the costing operations of the business. Management accounting is a flexible accounting technique and it can be considered as one major disadvantage of it. In the provided situation, it can be seen that the companies are not flexible enough to comply with all the modern costing techniques of costing as a part of management accounting. For this reason, the companies are facing major difficulties in carrying on the business operations that lead to winding up of business (Aksoylu & Aykan, 2013).
Comment 1: The provide situation indicates towards the massive popularity of the technology of online video streaming and many companies like Netflix has become majorly successful by adopting this strategy. However, in the presence of this technological development, the companies have forgotten to consider the fact that not all people can use this online video streaming. For this reason, the walk-in video stores have been majorly affected.
Comment 2: In the era of the technology of online video streaming, Video Ezy is one such organization that is still operating as a walk-in stores and the company will continue as operating as this business. However, in order to keep pace with the changing market, the company has adopted the strategy to operate as a self-service video renting kiosk. This strategy has become popular as 560 kiosks are operating at present.
Aksoylu, S., & Aykan, E. (2013). Effects of strategic management accounting techniques on perceived performance of businesses. Journal of US-China Public Administration, 10(10), 1004-1017.
Groot, T., & Selto, F. H. (2013). Advanced management accounting (pp. 339-378). Harlow/New York: Pearson.