$20 Bonus + 25% OFF +
5
%
Cashback
information
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Cost Accounting And Managerial Accounting

tag 0 Download5 Pages 1,154 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Cost Accounting and Managerial Accounting.
 
 

Answer:

Introduction

In this report, the discussion is focused on the subject area of cost accounting. During the report, mainly the answers of four different questions are given. The first question discusses about the use of managerial accounting information in strategic decision-making. The second and third questions focus on the different types of cost allocation and preparation of budget. In the fourth question, different approaches of performance evaluation and control are discussed.

Critical evaluation of the use of managerial accounting information for the strategic decision-making

Managerial accounting information is very much useful in the strategic decision-making in different types of organization. The managerial accounting information provides the knowledge regarding the cost structure of the organization (Collier 2015). This information helps the higher authority to understand whether the organization is operating cost effectively or it has exceeded the budget. On the other side, in case of private or public limited companies, the management of the organization can take the decision regarding the business diversification or merger and acquisition (Butler and Ghosh 2015). At the same time, in case of partnership or private and public limited companies, the managerial accounting information helps in taking the pricing decision and future marketing strategies.

Selection and application of different types of cost allocation

There are different types of cost allocation systems and those are – absorption costing allocation system, variable costing allocation system and activity-based cost allocation system. Absorption costing allocation is such a technique of cost allocation in which the costs are allocated internally by using the financial accounting techniques (Fanelli et al. 2015). In this type of cost allocation technique, the costs allocation is not disclosed publically. Variable cost allocation system is more or less similar to the absorption cost allocation system. However, main difference between these two allocation systems is that in case of variable cost allocation system, the fixed manufacturing costs are not allocated (Kaplan and Atkinson 2015). On the other side, the activity based cost allocation system, allocates the costs based on each activity takes place during the business operations.

Role of absorption cost allocation system

Role of variable cost allocation system

Role of activity based cost allocation system

The absorption cost allocation system helps the management in taking the internal overall costing strategies.

The variable cost allocation system helps the management in identifying the variable costs in the organization and taking the strategies for controlling such costs.

Activity based cost allocation system helps in identifying the costs of each activity separately. With the help of this, the management can identify in which area the company is incurring more costs and can taken necessary strategy for controlling the costs.

Design and preparation of budgets and feedback analysis

Budget can be of different types like, cash budget, sales budget, production budget and many more. However, the design and preparation style of different budget are different (Strumickas and Valanciene 2015). Here, the design and preparation of cash budget are shown below:

There is a company namely ABC Ltd, which needs to prepare cash budget for first three months of 2017. The cash budget is shown below:

Particulars

January 2017

(in $)

February 2017

(in $)

March 2017

(in $)

Opening cash balance

1000

3000

5900

Cash received:

 

 

 

Cash received from sales

7000

8000

10000

Total cash received

8000

11000

15900

Cash payments:

 

 

 

Payment of wages and salaries

(2000)

(2000)

(2000)

Tax payment

 

 

(700)

Payment of miscellaneous expenses

(3000)

(3100)

(3700)

Total cash payments

(5000)

(5100)

(6400)

Closing cash balance

3000

5900

9500

In the above table it can be seen that in the third month, the cash payment of the company increased due to the payment of tax and increase in the miscellaneous expenses. However, the closing balances are expected to be increased. From the above table, the management can take the decision of controlling the cash payment in the third month. This will help the company to increase the closing cash balance more at the end of third month.

 

Discussion on various approaches of performance evaluation and control

There are various approaches of performance evaluation and control those are applied in different types of business organizations. In case of private and public limited companies, presently, the approach of balance scorecard is used (Jerraya and Bacivarov 2016). In this approach, the management of the companies evaluates and controls the performance on the basis of four perspectives and those are – customers, financial, internal business and learning and growth perspectives.

In case of the partnership and sole proprietary businesses, the performance evaluation and control are generally done by checklists method (Brosig et al. 2015). This is one of the simplest methods of performance evaluation and control. Under this method, few questions are asked to the employees and if most of the answers become negative, then the organization arranges for training sessions.

There are few indicators of performance and those are as under:

Quantitative indicators – turnaround times, annual sales, yearly expenditure, number of journal entries and many more

Directional indicators - This is a technique, in which the performance is indicated by comparing the current year’s sales with the last year’s sales

Conclusion

During this report, it has been identified that managerial accounting information is very much useful in decision-making purposes. It has also identified that there are different techniques of cost allocations and approaches of performance evaluation and control those are applied by the different types of business organizations.

Evaluation of the regression models

In the evaluation of the two regression models that are net-up costs and number of set-ups and set-up costs and Number of set-ups hours, it can be identified that the in case of second regression model, the slope is higher than the first one. In case of first one, the coefficient of X variable is 0.001103 and on the other side, in case of the second variable, the coefficient of X variable is 0.015168. This indicates that the number of set-ups hours has more influence on the set-ups costs than the number of set-ups. Therefore, the organization that is Dilbert Toys must use the second regression model in case of decision making.

 

Reference List

Brosig, F., Meier, P., Becker, S., Koziolek, A., Koziolek, H. and Kounev, S., 2015. Quantitative evaluation of model-driven performance analysis and simulation of component-based architectures. Software Engineering, IEEE Transactions on, 41(2), pp.157-175.

Butler, S.A. and Ghosh, D., 2015. Individual differences in managerial accounting judgments and decision making. The British Accounting Review,47(1), pp.33-45.

Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.

Fanelli, A., Leniowski, D., Monaco, G. and Sankowski, P., 2015. The ring design game with fair cost allocation. Theoretical Computer Science, 562, pp.90-100.

Jerraya, A. and Bacivarov, I., 2016. Performance Evaluation Methods for Multiprocessor System-on-Chip Designs. Electronic Design Automation for IC System Design, Verification, and Testing, p.85.

Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.

Strumickas, M. and Valanciene, L., 2015. Research of management accounting changes in Lithuanian business organizations. Engineering Economics, 63(4).

OR

At MyAssignmenthelp.com, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.

Most Downloaded Sample Of Accounting

BCOM101 Business Communication1

Download : 0 | Pages : 5

Answer: Introduction The article titled “Team performance in cross cultural project teams: The moderated mediation role of heterogeneity, consensus, trust and faultlines has been studied by Merce Mach and Yehuda Baruch. Merce Mach is the faculty of business and economics at University of Barcelona, Spain and Yehuda Baruch is the faculty of Southampton Business School, United Kingdom. The main purpose of carrying out this study is analyz...

Read More arrow Tags: Australia Ravenhall Management Business Communication University of New South Wales 

HA2032 Corporate And Financial Accounting3

Download : 0 | Pages : 10

Answer: Part-(i) The question is very important from financial accounting of view as it is one of the fundamental aspect of business on account of its strategic importance in understanding the true and transparent position of the company. Any error of non-reporting can hide material facts and may lead to wrong understanding of the financial position of the company. The said statement is used by multiple user with multiple vested interest incl...

Read More arrow

HA 3011 Advanced Financial Accounting

Download : 0 | Pages : 10

Answer: Introduction From the article of Paul M. Healy and Krishna G. Palepu, it is notable that Enron undertook massive risks while presenting its financial statements that resulted in its downfall. The accounting standards were used by the Enron in a wrong manner that led to the reflection of wrong details. The mark-to-market mechanism was used to fool the public followed by the wrong usage of SPE and then using the stock options in a compl...

Read More arrow

HA2032 Corporate And Financial Accounting1

Download : 0 | Pages : 10

Answers: Introduction: Regulation of financial accounting is a very important aspect because of a variety of reasons. The most important aspect is the use of the financial statement by the outside public and interpreting the financials of the company in its own way, so a proper set of guidelines need to be prescribed for the accounting to be done and a standard and method to be set so that the different users to the financial statement interp...

Read More arrow

ACCT602-Financial Reporting Issues

Download : 0 | Pages : 8

Answer Introduction  The preset report is developed for undertaking a research into a selected area related to financial accounting and reporting. The area of research selected to be explored in this report is examining the importance of conceptual framework for standardization of global financial reporting process. This has been carried out through presenting a critical review of the 8 academic articles selected that has presented an in...

Read More arrow
Next
watch

Save Time & improve Grade

Just share your requirement and get a customized solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,140,679

Orders

4.9/5

Overall Rating

5,047

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

203 Order Completed

97% Response Time

Richard Alpert

PhD in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

647 Order Completed

98% Response Time

Adlina Han

Masters in Marketing with Specialization in Branding

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

3076 Order Completed

99% Response Time

Emily Wei

Doctor of Philosophy (Ph.D) in Civil Engineering

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

Great job awesome, I got a good grade for that and I'm sure to refer couple of friends who are not award of it. Thank you

flag

User Id: 341686 - 18 Nov 2019

Australia

student rating student rating student rating student rating student rating

got a 99! The paper was missing out one detail but can\'t complain! it helped my grade tremendously.

flag

User Id: 171706 - 18 Nov 2019

Australia

student rating student rating student rating student rating student rating

this one was the best mark I got. hope I can get a very good price in the future

flag

User Id: 4793 - 18 Nov 2019

Australia

student rating student rating student rating student rating student rating

good job. I expected it to be less than good but I was surprised to see good solutions and answer. Thank you very much and I will come again here in case if I needed a help.

flag

User Id: 343254 - 18 Nov 2019

Australia

student rating student rating student rating student rating student rating
Have any Query?