Sample Assignment on Management Accounting - Instant Assignment Help

1. MANAGEMENT ACCOUNTING TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

2. TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 1.1 Classification of cost on the basis of nature..........................................................................3 1.2 Calculation of unit cost.........................................................................................................4 1.3 Calculation of the cost by using absorption costing technique.............................................5 1.4 Calculation of overhead absorption rate using direct labor hours.........................................6 TASK 2............................................................................................................................................7 2.1 Preparation of cost sheet and variance analysis...................................................................7 2.2 Various performance indicators used to identify the areas of potential improvements........8 2.3 Ways to reduce cost, enhance value and quality...................................................................9 TASK 3 ...........................................................................................................................................9 3.1 Nature and purpose of budgeting process.............................................................................9 3.2 Appropriate budgeting method for the organization and its need.......................................10 3.3 Material purchase budget and production requirement budget...........................................11 3.4 preparation of cash budget.................................................................................................12 TASK 4..........................................................................................................................................13 4.1, 4.2 Variance analysis and recommendation corrective actions.........................................13 4.2 Reconciliation statement ....................................................................................................15 4.3 Identifications of responsibility centers.............................................................................15 CONCLUSION..............................................................................................................................16 REFERENCES..............................................................................................................................17 INDEX OF TABLES Table 1: Calculation of total cost and per unit cost for a job...........................................................5 Table 2: Calculation of overhead absorption rate using direct labor hours.....................................7 Table 3: Preparation of budgeted and actual cost (In £)..................................................................8 Table 4: Variance analysis................................................................................................................8 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

3. Table 5: Production budget for July, August and September (In Units)........................................12 Table 6: Material purchase budget.................................................................................................13 Table 7: Reconciliation statement .................................................................................................16 Table 8: Responsibility centers......................................................................................................16 INTRODUCTION Currently, firms are competing with each other on the basis of price irrespective of the sectors in which they operate. This makes it inevitable for the firms to reduce their cost of production and other costs. By doing management accounting firms are keeping stiff control on its direct and indirect expenses. In the report, costs are classified in to various parts on the basis of functions and elements of costs etc. After that some of the performance indicators like sales and profit are explained in detail in the report. Apart from this, some of the measures that a companies can adopt in order to reduce their costs are also explained in detail in the report. After this, budget process and purpose for preparing it are also explained in the report. In the middle part of the report, various budgets like production and material budget are prepared and comments regarding same are made. Finally, at the end of the report responsibility center is explained and relevant managers are made responsible for the variance in the budget. THIS IS A SAMPLE ASSIGNMENT BUY COMPLETE ASSIGNMENT CONTACT TOLL-FREE NO: +44 2038681671 WHATSAPP NO: +44 7999903324 EMAIL: help@instantassignmenthelp.com WEBSITE: https://www.instantassignmenthelp.com TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

4. TASK 1 1.1 Classification of cost on the basis of nature Following are the categories in which costs are classified.  Elements of the cost- There are three elements of cost namely material, labor and overheads. Material cost refers to the expenses that are related to purchase of the raw material. Raw material that is used for production may be like zinc and copper etc. labor cost refers to the employee cost that is related to the employee’s that are working in the production place (Schaltegger, Gibassier and Zvezdov, 2013). On the other hand, there are overhead expenses that are indirectly related to the production process. These expenses may include carriage expenses etc.  Function- On the basis of functions all expenses are classified on the basis of functional departments like finance and production departments. Finance department may cover expenses related to processing of documents and finance cost that is paid on the raised amount (Jinga and et.al., 2010) . On other hand all marketing expenses are grouped by the marketing manager. Similarly, all expenses are grouped under the relevant departments in an organization.  Nature- On the basis of nature, costs is classified into two categories, namely direct cost, indirect cost. Direct cost refers to the expenses that are related directly to the production process. Purchase of raw material is a best example of direct cost. On the other hand, there are indirect expenses which are those expenses that are not related to the production process. The best example of the indirect cost is storage cost of the raw materials.  Behavior- On the basis of behavior cost is classified into three categories namely fixed, variable and semi variable cost. Fixed cost refers to the cost that does not get changed during the lifetime of the firm. Purchase of machine is the best example of fixed cost. On other hand, variable cost refers to the cost that keeps on changing continuously and never remains stable (Christ and Burritt, 2013). Purchase of raw material is a best example of TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

5. variable expenses. At last, there is a semi variable cost whose some part remain fixed and some remain variable. This sort of cost has a feature of both fixed and variable cost. 1.2 Calculation of unit cost Unit cost is calculated by dividing entire cost by the number of units produced. For calculating unit cost same approach is followed. Calculation of unit cost is given below. Table 1: Calculation of total cost and per unit cost for a job Job cost sheet for Job no. 444 Particulars Direct material ( 50kg*200 units* 4£ per kg) Direct Labor ( 30 hours* 9£ per hour * 200 units) Fixed production overhead (80000£/20000*(200 Units *30 Total cost 40000 54000 hours) 24000 36000 154000 variable production overhead ( 6£ *6000 hours) Total cost Unit cost (154000£/200 Units) 770 Interpretation Here, per unit cost are 770 for 200 units that Jefferey & sons produced at their production place. For this material, labor and fixed costs as well as variable costs are considered in the calculation. First of all aggregate quantity of raw material and labor is computed and then value is multiplied by the per unit cost of the material and labor. In this way cost of material and labor is computed for final calculation. By doing calculation for fixed and variable expenses unit cost is calculated for Jefferey & sons products. 1.3 Calculation of the cost by using absorption costing technique a) Allocation and apportion of overhead into three production departments Primary distribution Service Producti departm on ent TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

6. Basis of Total in Machine X Machin Assembly Stores Mainten allocation (£) (£) e Y (£) 1 (£) (£) ance (£) Indirect wages and 362000. 99500.0 supervision 00 100000.00 0 92500.00 253000. 100000. Indirect material 00 100000.00 00 40000.00 Machine 50000.0 20000.0 light and heating hours 0 26666.67 0 3333.33 Area 100000. 10000.0 30000.0 10000.0 rent occupied 00 20000.00 0 30000.00 0 0 insurance and Book value 15000.0 machinery of machinery 0 3529.40 2205.90 4411.80 2205.90 2647.06 Book value 150000. 22058.8 22058.8 26470.5 depreciation of machinery 00 35294.12 0 44117.65 0 9 Area 25000.0 Insurance of building occupied 0 5000.00 2500.00 7500.00 7500.00 2500.00 salaries of work No. of 80000.0 16000.0 management employees 0 24000.00 0 24000.00 8000.00 8000.00 103500 272264. 69764.7 49617.6 0.00 314490.19 70 245862.78 0 5 b). Reapportion of the cost of service department into the three production departments Secondary distribution Service Producti departm on ent Basis of Total in Machine X Machin Assembly Stores Mainten TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

7. allocation (£) e Y (£) 1 (£) (£) ance (£) Primary distribution (Earlier table) 1035000 314490 272264 245862 69764 49617 Direct Stores material 34882 26161 8720 69764 - Direct machine Maintenance hours 23816 15877 9923 - 49617 1.4 Calculation of overhead absorption rate using direct labor hours Table 2: Calculation of overhead absorption rate using direct labor hours Particular Production Basis of Total in allocation (£) Machine X Machine Y (£) Assembly 1 (£) Primary distribution 103500 (Earlier table) 0.00 314490.19 272264.70 245862.78 Stores Direct material 34882.35 26161.76 8720.59 Maintenance Labor hours 2:1.5:1 22052.29 16539.22 11026.14 Total Cost 371424.83 314965.68 265609.51 Calculation of overhead absorption rates Machine Y = 314965.68/150000 labor hours = £ 2.10 Assembly = 265609.51/100000 labor hours = £ 2.66 Machine X = 371424.83/200000 Labor hours = £1.86 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

8. THIS IS A SAMPLE ASSIGNMENT BUY COMPLETE ASSIGNMENT CONTACT TOLL-FREE NO: +44 2038681671 WHATSAPP NO: +44 7999903324 EMAIL: help@instantassignmenthelp.com WEBSITE: https://www.instantassignmenthelp.com TASK 2 2.1 Preparation of cost sheet and variance analysis Table 3: Preparation of budgeted and actual cost (In £) Budgeted Output ( 2000 Units) Per unit cost Total cost 12 24000 9 18000 15000 5000 Actual Output ( 1900 Units) Per unit cost 12 10 Particular Material Labor Fixed Overhead Electricity (Fixed) Electricity Total cost 22800 19000 15000 5000 (variable) Maintenance Total 3.75*800 3000 5000 70000 3.75*700 2625 4800 69225 35 36.43 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

9.  Variable electricity cost per unit= Difference in total cost/highest and lowest units difference = (8000£-5000£)/ (2000-1200) = 3000£/800 = 3.75£ per unit  Fixed cost = 5000£  Variable cost= 3.75£*(1900-1200) = 3.75£ * 700 = 2625£  Maintenance cost = 5000£ – (1000£/500*100) = 5000£ – 200£ = 4800£ Variance Analysis Table 4: Variance analysis Budgeted cost Particular Material Labor Fixed Overhead Electricity Maintenance Total (2000) 24000 18000 15000 8000 5000 Actual cost (1900) 22800 19000 15000 7625 4800 Variance 1200 -1000 0 375 200 70000 69225 775 Interpretation On analysis of the facts it can be seen that Jeffrey & sons variance is positive and on all fronts it gives good performance. But variance on labor cost is negative because the actual expenses are greater than projected expenses. If we look at these figures from different side then it can be seen that this is not the firm achievement. This is because, the firm actual sales are 1900 units and budgeted sales was 2000 units. Firm produces less and due to this reason it requires fewer amounts of resources at the production place. Due to this reason variance is positive in the TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

10. table. But even though labor variance is negative and this happens because firm does not reduce size of labor force employed in its production process. Hence, it can be said that there are inefficiencies in an organization and Jeffrey & sons needs to make sound business decisions. 2.2 Various performance indicators used to identify the areas of potential improvements Some of the performance indicators that can be used to measure areas of potential improvements are as follows.  Profit- It is a part of that remain after deducting all expenses from the earned revenue. If firm takes some of the steps that will lead to increase in company profit. Then firm can use profit as a tool to measure effectiveness of the areas of the potential improvements that were made to increase company profit. This is a parameter that is commonly used by the firm to identify and measure effectiveness of the area of potential improvements (Shah, Malik and Malik, 2011). Many times firm sales fall continuously and in such a situation by identifying various factors that contributes to profit earning firm identify areas of potential improvements. In such a situation companies by formulating a strategy improve their performance in the areas where potential improvements were required.  Turnover- It refers to the sales that a firm made at the end of the specific period. It is also used to identify areas of potential improvements. Many times firm makes an efforts but even though its sales does not grow at a fast pace. In such a situation all things that contribute to sale are identified and firm prepare a tactics in order to give good performance on the factors where it is weak (Morales and Lambert, 2013). In this way areas of potential improvements are identified and firm performance is improved.  Customer satisfaction- This is another area of potential improvement which do not need to be identified (Contrafatto and Burns, 2013). This is because it is an area where every company needs to do lots of work in order to develop loyal customer base in order to compete with competitors. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

11. 2.3 Ways to reduce cost, enhance value and quality There are many ways to reduce cost and enhancement of value. In order to reduce cost firm needs to generate economies of scale. It is a concept which is focusing on reduction of cost. Under this some of the steps are taken that lead to cost reduction. This ultimately led to decline in the cost of production (Papaspyropoulos and et.al, 2012). Hence, in this regard firm can reduce its transportation cost. By using transportation problems technique Jefferey and sons can identify shortest for transportation of the product. This will lead to reduction in the firm cost of production. In order to enhance value and quality Jefferey and sons can undertake research and development activity (Cadez and Guilding, 2012). By doing so, firm can bring many new changes in the product and make it innovative in nature. This will also act as USP for the company product. THIS IS A SAMPLE ASSIGNMENT BUY COMPLETE ASSIGNMENT CONTACT TOLL-FREE NO: +44 2038681671 WHATSAPP NO: +44 7999903324 EMAIL: help@instantassignmenthelp.com WEBSITE: https://www.instantassignmenthelp.com TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

12. TASK 3 3.1 Nature and purpose of budgeting process Process for preparing a budget is as follows.  Gather information- This is the first stage of the budget process and under this process information that is required for preparing a budget is collected. This information may be related to the several departments like production finance and HR etc (Coyne and et. al., 2010). Relevant data is collected by the managers from his subordinates. After that he proceeds for the next steps.  Recording all sources of income- In this of the budget preparation process all sources of income is recorded. These sources may be sales, lease and investment that are made in the financial products. In this stage managers evaluate current economic environment and predict future scenario related to the same component of the business environment (Viere, Schaltegger and von Enden, 2012). On the basis of this evaluation projections of the income are made by the managers.  Creating a list of monthly income- Projection made in above step is on annual basis and in order to estimate the monthly income entire projected earning is divided by the 12 months (van der Meer-Kooistra and Vosselman, 2012). By doing so managers came to know about the per month income hat business can generate in the future.  Estimating expenses-In the fourth stage of the budget preparation a list of expenses is prepared. In order to prepare this list project expenses are demanded from the all departments of an organization. After receiving all these departments’ projections same are included in the list. In this list of expenses is prepared by the managers.  Preparing a final budget- This is final stage of budget preparation and under this all estimated figures of income and expenses is arranged in a systematic manner. First of all income is recorded and then expenses are placed in the table (Faÿ, Introna and Puyou, 2010). After that expenses are deducted from income and balance is transferred to the next time period. In this way, final budget is prepared by the manager. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

13. Purpose of preparing a budget The main purpose of preparing a budget is to control cost and motivate employees to achieve an objective. In the budget figure is determined for all expenses and main target of Jeffrey and sons is to keep expenses below determined value. By doing this cost of production is reduced for the product (Askarany, Yazdifar and Askary, 2010). On other hand, budget is also used to motivate employees to work hard. These figures acts as a target for the employees and due to this reason budget motivate employees to work hard. Hence, it can be said that budget has a multi dimensional benefits for the firm. 3.2 Appropriate budgeting method for the organization and its need The budgeting methods that Jeffrey and sons can used are as follows.  Incremental budgeting- Under this type of budgeting an increment is made to the past budget. In this past budget is considered by the managers. Firm determined a growth rate and that rate are added to the past data in order to compute new budget. This type of budgeting is widely used by the mangers because with passage of time business grows and expenses also grow (Victoravich, 2010). Due to this reason incremental budget is very popular among the business firms. In order determine growth rate many economic data are considered. These economic data are GDP data and inflation rate data. A business cannot run at a rate greater then nation GDP. Hence, by using GDP growth rate projections can be made. On the other hand, by using inflation rate future expenses can be estimated by the managers. Hence, by making use of these data budgets can be prepared in the proper manner.  Zero based budgeting- In this budgeting technique inputs are taken from the departments. Until departments will not send projected expense statement to the top management no amount will be allocated to the specific department. These departments also need to justify their assumptions in order to get budget from the top management. Hence, it can be said that in this budget cautious approach is followed and accurate TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

14. budget is prepared (Libby and Lindsay, 2010). Due to this reason this approach of budget preparation is widely used by the business managers.  Top down budgeting- In this type of budgeting two level of management work on the budget and these levels are top and middle level of the management. In case of this kind of budget top management prepare a budget and communicate same to the middle level of the management (Quinn, 2014). Then middle level managers allocate budget amount among all departments and these allocations are communicated to the middle level of the top level of management for approval. After approval from the management the budget amount is allocated among the all departments. 3.3 Material purchase budget and production requirement budget Table 5: Production budget for July, August and September (In Units) July 105000 11000 94000 August 90000 13500 76500 September 105000 15750 89250 October 110000 16500 93500 Sales Op. Stock Cl stock (15% of the following month) Production 13500 107500 15750 92250 16500 105750 15000 108500 Interpretation From analysis of figures it can be seen that in the month of August production decline and as a result sales of the firm also decline. But in the next month again production increases. In last month same trend is observed in the budget. This reflects that firm is thinking that some of the short term fluctuations can be observed in demand. Otherwise, in ling term there will be demand for the product. Table 6: Material purchase budget Material Require (2 per kg) 215000 184500 211500 Less- Opening stock 52000 45000 52500 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

15. Total 163000 139500 159000 Add- Closing stock 46125 52875 54250 Purchase 209125 191250 212875 Working note; Material requirement = Production * material required per unit July = 107500 * 2 = 215000 Kg August = 92250 * 2 = 184500 kg September = 105750 * 2 = 211500 kg Closing Stock = It is required to 25% of the next month requirements. July = 92250 Units*2 Kg*25% = 46125 Kg August = 105750 units*2kg *25% = 52875 Kg September = 108500 Units*2Kg*25% = 54250 Kg Interpretation On analysis of figures it can be seen that production and purchase budget are going in same direction. This is happening because purchase budget is closely linked to the production budget. This budget is prepared by considering future demand for the company product. Hence, it can be said that this budget is prepared in proper manner. 3.4 preparation of cash budget Cash budget is prepared by estimating cash inflow and cash outflows for a certain period. July August September Cash inflows 900000 731250 864000 Sales receipt Total cash inflows 900000 731250 864000 Cash outflow Purchase 365969 334668 372531 Labor 322500 276750 317250 Variable overhead 108500 98350 100350 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

16. Fixed overhead 75000 87500 87500 Total cash outflow 871969 797288 877731 Net cash flow 28031 66038 13631 Opening cash balance 16000 44031 22007 Closing cash balance 44031 22007 35638 Interpretation In the month of July balance is negative and this happens because expenditures exceed receipts. Then negative amount is charged on the next month cash inflows. In the next month again expenses exceed income and due to this reason in the month of August negative balance are charged to the next month cash receipt. In the month of September again same trend is repeated. Due to negative business conditions budget is in deficit for the mentioned months. TASK 4 4.1 Variance analysis and recommendation corrective actions Calculation of Budgeted cost for 4000 Units are as follows: Particular Sales (A) Material Labor Fixed Overhead Total Cost (B) Profit (A - B) Per unit cost 4 0.96 0.8 Budgeted 16000 3840 3200 4800 11840 4160 2.96 1.04 Working Note: Sales = 4000 * 4£ = 16000£ Material cost = 0.4kg*2.40£*4000 = 3840£ Labor cost = 8£*6/60*4000 = 3200£ Fixed overhead = 4800£ Calculation of variance TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

17. Particular Sales Material Labor Fixed overhead Profit Budgeted 16000 3840 3200 4800 4160 Fixed 14000 3360 2800 4800 3040 Actual 13820 3420 2690 4900 2810 Sales variance Particulars Variance Sales volume variance ( -50*1.04) -520 (Adverse) Sales price variance ( 14000 - 13820) 180 (A) Particulars Formula Calculation Net variance Material price AQ*(SP-AP) 1425(2.4£ - 2.4£) Zero variance Material usage (SQ-AQ)*SP [( 3500 *0.4)-(1425)* 60(Adverse) variance (2.40)] Total 60 (Adverse) The labor variance Particulars Formula Variance Net variance Labor rate variance (SR-AR)*SH [(8£-7.8£)*350] 70 (f) Labor efficiency (SH-AH)*SR [(3500*0.1)-(345)]*8£ 40(f) variance Fixed overhead variance Particulars Variance Net variance Budgeted fixed 4800 production overhead Actual fixed overhead 4900 Fixed overhead Budgeted -Actual 4800 - 4900 100 (A) TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

18. expenditure variance Interpretation On analysis of figures it can be seen that firm sale less products then it intends to sales in the market. On other hand, in case of material and labor variance is positive and this reflects that firm produces less quantity be envisaging that in future there will be less demand for the product. This is proved from the reduced amount of sales. Fixed overhead of the firm get increase and it means that firm make an over expense on fixed assets. Thus, it can be said that firm is not able to make accurate prediction regarding budget. 4.2 Reconciliation statement Table 7: Reconciliation statement Favorable Adverse Total Budgeted profit 4160 (4000*1.04) Sales price variance -180 Sales margin volume -520 variance Material price variance 0 Material usage -60 variance Labor rate variance 70 Labor efficiency 40 variance Fixed overhead -100 expenditure variance Fixed overhead -600 capacity variance Total variance 110 -1460 -1350 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

19. Actual profit 2810 4.3 Identifications of responsibility centers Table 8: Responsibility centers Variance Who is responsible Sales price variance Sales manager Sales margin volume variance Sales manager Material price variance Buying manager Material usage variance Production manager Labor rate variance HR manager Labor efficiency variance Production manager Fixed overhead expenditure variance Various managers Fixed overhead capacity variance Responsibility center refers to the making someone responsible for the mistakes Various managers committed by the specific department (Holtzman, 2015). Managers that are giving leadership are made responsible for the failure of the department. For sales price variance sales manager is held responsible under this concept. In same way for material usage variance production manager is made responsible. Sometimes it is not possible to held manager responsible for specific mistake. In such a situation multiple managers are made responsible for the mistake that is committed in an organization. CONCLUSION On the basis of entire discussion it is concluded that there are many types of costs and some of them are fixed and variable in nature. Firms must try to identify the variable costs and should make an effort in order to reduce their cost of production. In respect to this, firms need to adopt cost control techniques at the facility. In order to reduce cost firms can prepare a budget and for this lots of data need to be collected from the internal sources of information. Management needs to prepare some of the steps that can be taken in order to keep costs under TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

20. control. By doing this chances of negative variance can be eliminated to large extent. If negative variance comes in existence then management can do deep analysis of the business operations in order to identify the reasons due to which this variance comes in existence. By doing so, company can be managed in proper manner. THIS IS A SAMPLE ASSIGNMENT BUY COMPLETE ASSIGNMENT CONTACT TOLL-FREE NO: +44 2038681671 WHATSAPP NO: +44 7999903324 EMAIL: help@instantassignmenthelp.com WEBSITE: https://www.instantassignmenthelp.com TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

21. REFERENCES Books & journals Askarany, D., Yazdifar, H. and Askary, S., 2010. Supply chain management, activity-based costing and organisational factors. International Journal of Production Economics. 127(2). pp.238-248. Cadez, S. and Guilding, C., 2012. Strategy, strategic management accounting and performance: a configurational analysis. Industrial Management & Data Systems. 112(3). pp.484-501. Christ, K.L. and Burritt, R.L., 2013. Environmental management accounting: the significance of contingent variables for adoption. Journal of Cleaner Production. 41. pp.163-173. Contrafatto, M. and Burns, J., 2013. Social and environmental accounting, organisational change and management accounting: a processual view. Management Accounting Research. 24(4). pp.349-365. Coyne, J.G., et,al., 2010. Accounting program research rankings by topical area and methodology. Issues in Accounting Education. 25(4). pp.631-654. Faÿ, E., Introna, L. and Puyou, F.R., 2010. Living with numbers: Accounting for subjectivity in/with management accounting systems. Information and Organization. 20(1). pp.21- 43. Jinga, G., et.al., 2010. Accounting systems for cost management used in the Romanian economic entities. Accounting and Management Information Systems. 9(2). p.242. Morales, J. and Lambert, C., 2013. Dirty work and the construction of identity. An ethnographic study of management accounting practices. Accounting, Organizations and Society. 38(3). pp.228-244. Papaspyropoulos, K.G., et.al., 2012. Challenges in implementing environmental management accounting tools: the case of a nonprofit forestry organization. Journal of Cleaner Production. 29. pp.132-143. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE

22. Schaltegger, S., Gibassier, D. and Zvezdov, D., 2013. Is environmental management accounting a discipline? A bibliometric literature review. Meditari Accountancy Research. 21(1). pp.4-31. Shah, H., Malik, A. and Malik, M.S., 2011. Strategic management accounting: A messiah for management accounting. Australian Journal of Business and Management Research. 1(4). pp.1-7. van der Meer-Kooistra, J. and Vosselman, E., 2012. Research paradigms, theoretical pluralism and the practical relevance of management accounting knowledge. Qualitative Research in Accounting & Management. 9(3). pp.245-264. Viere, T., Schaltegger, S. and von Enden, J., 2012. Supply Chain Information in Environmental Management Accounting –the case of a Vietnamese Coffee Exporter. Issues in Social and Environmental Accounting. 1(2). pp.296-310. Online Holtzman, P. M., 2015. [Online]. Management accounting: Types of responsibility centers. Available through: < http://www.dummies.com/how-to/content/managerial-accounting- types-of-responsibility-cent.html>. [Accessed on 28th January 2016]. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com ASSIGNMENT WRITING SERVICE