The rubbish is the garbage hoarded up in residential area that has to be collected to keep the surrounding environment clean and neat so that the disease can be kept away (COC, 2017). The residential rubbish may be vegetable peels, rotten fruits, used office ground, soap cover, empty bottles, floor sweeping dust, used mop cloths and others. Rubbish cane or bag is put in the residential area, in which the residents dispose their household rubbish and garbage. The rubbish begs then collected by the municipalities and it disposes it far away of the city (O’Connor, 2010).
The collection and disposal process of rubbish includes different kinds of cost such as landfill cost, container cost, cost of towing van, pickup and dumpster rent, taxes and regulations, cost of rubbish bags, cost of rubbish collectors, and others. However, it can be said that it includes labor cost, equipments cost, administration cost, land, recycling cost and others (NCC, 2017). Along with this, the cost of equipments and tools are included in cost structure of collecting and disposing of the rubbish. The rubbish bags are kept at the residential area, which are collected and disposed every week (WM, 2012). Apart from this, the cost of labor also adds to the total cost of the collection and disposal of the rubbish from the residential areas. The labor is required for driving the wastage conveying vehicles, for loading the rubbish bags on van and truck, and recycling the wastage for reducing the wastage and for ensuring the healthy environment (HCC, 2017). Disposal is the process of getting the rubbish out of the city and hoarding it up and recycling it for reducing the soil pollution and other environmental issues.
Along with this, the other cost elements in the collection and disposal of the wastage or rubbish from the residential area include basket or container, tricycle, compost pit, segregation shed, uniform, safety measures such as gloves, tools and equipment, supervisor salary, repair and maintenance, sanitation workers and others. All these cost have to include as these costs are basic cost elements in the collection and disposal of rubbish from the residential addresses. However, the cost in collection and disposal of the rubbish from residential area can be calculated easily. First of all, all the requirements for collecting and disposing the rubbish have to be indentified such as container, rubbish bags, labor, equipments and tools, vehicles, and others. After identifying the requirement, the cost for each requirement is assigned for per week because the rubbish is collected from the residential areas each week. The units of labor, containers, bags, and other requirement are multiplied by the cost per unit. Then this cost is multiplied by the number of weeks in a year for identifying the total cost for a year in collecting and disposing the rubbish.
Difficulties in calculation of cost:
Number of difficulties would occur in estimation and calculation of the cost in collecting and disposing the rubbish from the residential area. It is very hard to identify the requirement of the quantity of the rubbish per week in different residential areas which in turn cause difficulty in determining the requirement of the containers and rubbish bags. For this, the number of families and houses in the residential areas are identified and then the quantity of the rubbish per week is estimated. This helped in finding out the requirements in terms of number of containers, number of rubbish bags, number of vehicles for carrying the containers, and others.
Furthermore, after finding the requirement the cost per unit has to be identified therefore it is required to find the ongoing labor rate in the city or town. The minimum labor rate has been used here for this. The number of people required for collecting and disposing the rubbish are then multiplied by the labor rate for identifying the labor cost. The cost included in the collection and disposal of the wastage from the residential areas are realistic to a good extent.
Along with this, the calculation of the cost in collection and disposal of the rubbish is too long and tidy as first the cost per unit has been indentified, then the cost per week has been identified and then the total cost for one year has been identified. This caused the uncomfortable in calculation of the cost. Along with this, it was very hard to find the going on rate of labor, rubbish bags, and others tools and equipments as the price for this requirement vary at different places. Then the average price for the products or services was calculated and then the cost per unit was calculated. Lastly, it can be said that the cost calculated is exact realistic to the great extent.
Rates for services of ABC Council
Yes, there should be fixed fee for the services provided by the ABC Council for collecting the rubbish from the residential areas. The fee should be determined considering the cost of service. This is because the cost burden on the ABC council will be transferred to the people living in residential areas and gaining services. This also will improve the service of the ABC Council. Along with this, the fee for the services should be determined according to the weight of the waste and cost of service. The fee and rate of the services should be determined based activity cost this helps in determining the minimum fee criteria. The fees and charges for the services can ensure the compliance with the environmental regulations and ethical codes in society. This will make the people comply with the ethical codes. This will also generate capital for the Council that it can use further for investing in the more containers, equipments, vehicles, and measures and in recycling of the rubbish or wastage. The raised fund may be used in the welfare of the society by reducing the rubbish collection period that may help in reducing the pollution and other diseases due to solid waste and rubbish.
The management accountant is also known as corporate accountant. The management accountant is the person who aids in managerial planning and decision making by providing the information to the management about the financial transactions and accounting administration (Sunami, 2013). The management accountants are responsible of planning, preparing the budget, managing the risk, developing strategies and making decision in the organization (Lambert and Sponem, 2012). Therefore, the management accountant finds out the opportunities in market, analyze them to identify and mange the risk, arrange the finance for effective operation, and monitor the compliance. The main functions of the management accounts include the budgeting, tax handling, assets management, and helping in strategic decision making (Ahid and Augustine, 2012).
Role of management accountants towards their employer, people and company
Management accounting becomes an integral part of the business. It guides and advises management at every step of the business. The role of management accountant gives the end number of benefits to the company. The accountants is responsible for the financial security, handling all financial matters and thus helps company to drive the business overall management strategy. Management accountants focus on the financial planning, cost accounting and management issues. The below given are the major responsibilities of the management accountants regarding the company.
- Budgeting- An accountants make the budget for the company regarding their overall key activities in the different functional departments. They forecast the overall budgeting and report to the senior managers so that they can take strategic operational decisions. Budget indicates the financial plan of the company using quantitative figures and forecasted the needs of the individual departments and allocated the budget as per their programs and schedules. Moreover, allocation in budgets creates the conflicts among the departments and it results the loss of the productivity. Sometimes, the management accountants produced the special budgets as per the requirement of the special needs. Most of the time the accountants produced the budgets for the company which includes master, sales, production, material, labor and cash budgets.
- Handling Taxes- They analyses the taxation part of the income through various rules like GAAP, IFRS and IAS and calculate the taxable amount from the income.
- Decision making- The management accountant is responsible for the strategic decisions in the company among various alternatives. For e.g. In a manufacturing unit, the responsibility of the management accountant is to determine the best product to manufacture that is more profitable to the company and the price charge to the customers. Moreover, the management accountant compares the price of the product with the cost associated with the manufacturing of the product. Managerial accountants perform cost analysis for certain products and divisions which include variable costs and fixed costs. The managerial accountant gives the direct information to the production manager which helps to take the production decisions in the future.
Managerial accountants perform the cost analysis of the products and services of different divisions which include variable and fixed costs. On the basis of cost predictions, top management would forecast and develop the fruitful strategy for the company.
The management accountants are responsible to follow the ethical practices in their accounting. They have the social contract towards the society and their profession. They are bound to follow the codes, standards and regulations in their practices. They are the assets of the organization and business and they are socially bound towards their practices and provide the fair information to their users. They tend to responsible to maintain the integrity of the profession by provides good financial reporting to its users. They are responsible to protect the interest of the public regarding the accountancy profession.
As a professional they are seen to be a privileged position in the society and they are dealing with all the issues that are related to the public interest. Accountants not only maintain the high standards in their profession but also help the organizations to act ethically. Moreover, it provides the professional advice to the small business owners to follow the management accounting process in their business operations to increase the reliability of the profession. They are responsible to indicate the major challenges and benefits to the small business owners and provide the best solutions to the public to follow these practices. The management accountants work with the small business owners and emphasize them to follow the specific responsibilities regarding their profession. This professional information benefits the owners to take strategic decision in the long term.
Management accountants provide the fair information regarding the employee’s productivity in the company. They also responsible to adapt the fair accounting standards and provides benefits to the employees of the company. Moreover, the accountants are responsible to disclose all the information to the stakeholders of the company so that they can use the information for their benefits. They are solely responsible to protect the interest of the people towards accounting practices. They are responsible to meeting the expectations of the customer’s as well as it helps the lower level of management to handle the basic accounting tasks such as recording income and expenses, track tax liabilities and make reliable financial statements on the basis of these data. They adopt the social sustainability practices in their accounting and conditions monitors the financial activities at each functional level to maintain the viability of the profession and develop the trust among the people internally and externally.
The public accountants emphasize many big organizations to fulfill the corporate social responsibilities and sustainability practices in their profession to the benefit of the public. They are solely responsible on trust of the public. This profession is driven by the public trusts and they lose their legitimacy if there is no public trust is exists between them. It is important for any public accountant to work for the benefit of the public and ensures that their trust and interest would not be down towards this profession
An accountant with the help of its expertise, education, training and analytical skills provides multiple benefits to the growing society needs. The accountants provide justice in the matter of the taxation, fraud, financial policies, budgeting and even economic principles. An accountant handles the taxation matters of the business or a person so that they run the business smoothly in the society without bearing any unnecessary tax liabilities. Moreover most of the accountants provide the consultant’s services to the society regarding their jobs or ne startups. They analyse the business structure and reporting standards and plan the internal operations and control functions. On the basis of business structure, it gives the idea to the individual for long term planning.
They collect, analyse, interpret and present all the important information that is beneficial for the management. They ensure the society regarding any fraud and misrepresentations done by the organizations and provide services in the areas of costing, budgeting and evaluation of the new investments, disinvestments and working capital management. The accountants also responsible to provide effective accounting information to the various levels like political, social, economical and legal. On the basis of information it assists society to make informed decisions in relation the effective allocation of resources. The measurement of accounting information at all levels of the society. The measurement of accounting profits and costs influenced on the jobs, taxes and prices.
Ethical conflicts due to imbalance between responsibilities of MA:
The management accountant cannot look at the interest of one part only but have to consider the interest of the all the parties at one time. However, the management accountant should consider the ethical principle and codes while performing his or her duty. The management account should perform his responsibilities regarding profession to ensure the compliance with relevant law, regulation, and knowledge and skills (Finch, 2016). Along with this, it is the ethical responsibility of the management accountants to provide clear, accurate, and reliable information. The imbalance in the responsibilities may cause the ethical conflicts. For example, if the management accountant considers the interest of the employer only and does not consider the interest of the shareholders in company, then it may lead ethical conflicts (Accountingverse, 2017). And the management accountant reports the information in annual report favorable to the employer but beguile the shareholders. This may cause ethical conflicts in responsibilities of the accountant to people and employer.
Apart from this, for example the management accountant is obliged to ensure the confidentiality of the information. But to keep the interest of the shareholders, it is also responsibility of the management accountant to provide the shareholders with accurate and clear information (Finch, 2016). This may cause the ethical conflicts between responsibility of confidentiality of information to employers and responsibility of the accurate and clear information to the shareholders. Furthermore, the responsibility of administering tax policy and procedure also conflicts with responsibility to compliance with government rules and regulations. Therefore, for example, the management accountant is responsible for managing the income and tax policy so that tax can be reduced but this manipulation and responsibility may conflict with responsibility of compliance with regulation of accurate and complete tax payment (Accountingverse, 2017). Furthermore, for example if the management account ignores small mistakes in the accounts of the company and approve it then this action of the management can cause conflicts with the responsibility of honesty and fairness in accounts. This negligence behavior of the management accountant may affect the interest of people uses the accounting information of the company.
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