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AC50030E Managerial Finance

tag 0 Download6 Pages / 1,346 Words
  • Course Code: AC50030E
  • University: University Of East London
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  • Country: United Kingdom

Questions:

Calculate the cost of a product or service using traditional and Modern techniques such as Activity Based Costing.

understand the purpose and scope of budgeting and control via use of variances.

Communicate in an effective manner, management accounting information.

(1)

A) Using the traditional approach to accounting for overheads, calculate the product cost per unit for each of the three products.
B) Using the principles of Activity Based Costing, calculate the product cost per unit for each of the three products.   
C) Explain the difference in your answers to (a) and (b) and the potential implications for decision making in DDT Ltd.

(2)

Keita is a client of your firm and operates a small courier service on the east region of Canada. She is keen to expand the business in the future and has just attended a seminar on the usefulness of management accounting in small companies. She is aware that management accounting is common in manufacturing industries but is unsure of its relevance to service industries such as her own courier company.

Keita has asked you to write a report addressing her concerns as follows:

  • Outline the main objectives of budgeting.
  • Outline two areas of difference between management accounting and financial
  • Explain the difference between fixed budgeting and flexible budgeting.
  • Advise Ketia on specific uses of variances within budgetary control.

Report format and bibliography. Marks will be awarded for structure and presentation. (This includes the appropriate use of appendices, clarity of explanation and ability to summarize your findings).

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