Free Laptop with AOL Broadband

Has the world started rotating the other way round "Free Laptop with AOL Broadband at Carphone Warehouse" !!! or Free Laptop when you subscribe for mobile phone contract.

I did not believe when these offers came the first time.

The mobile phone offer reads:

Our best offer yet! Connect selected mobile phones to selected monthly contracts this month and get a free laptop!

That's right a Free Dell Inspiron 1520 laptop is yours on many £35 a month tariffs this winter when you connect to an 18 month contract. There are no catches or small print, we'll simply send out your free laptop as soon as we've confirmed you've paid your first month's mobile bill.

The laptop retails at £ 380 to £ 489. And the total commitment on mobile phone contract is £ 630. So you can guess where the margins come from when the buying is wholesale.

The other product that amazes me is Gillette Shaving Razor. Every year they add extra blade on the razor and the product sells. Currently it has 5 blades - Retails at £ 21.99 and cartridges of 8 at £ 14.99. In year 2010, it may have 10 blades. Will you consider them expensive or cheap ?

With the change in technology, the rules of the business change. Tata's recently came up with Nano, a cheapest car on the planet !!! Now the role of management accountants in the industry has become more wider than ever.

In my SAP implementations, Financial Controllers have been more interested in Management Accounting Reports viz. Contribution/Margin reports, product group/ product wise. They want sliced and diced reports region-wise/customer group wise. The driver to these reports are the business managers who want it for decision making. SAP is encouraging the use of Business Intelligence for reporting.

The world is also spinning the other way round in Accounting. As the rules of business are changing, so is the role of management accountants and management accounting.

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Santosh Puthran

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