Management Accounting Sample - Instant Assignment Help

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

2. Table of Contents Management Accounting............................................................................................................1 INTRODUCTION......................................................................................................................4 TASK 1.......................................................................................................................................4 AC 1.1 Classification of costs on the basis of element, function, nature and behaviour..4 AC 1.2 Calculation of total job cost and per unit job cost................................................5 AC 1.3 Calculation of the cost by using absorption costing technique............................6 TASK 2.......................................................................................................................................8 AC 2.1 Preparation of cost sheet and variance analysis...................................................8 AC 2.2 various performance indicators used to identify areas of potential improvements10 AC 2.3 Ways to reduce cost, enhance value and quality................................................10 TASK 3.................................................................................................................................11 AC 3.1 Nature and purpose of budgeting process..........................................................11 AC 3.2 Appropriate budgeting method for the organization and its need......................12 AC 3.3 Material purchase budget and production requirement budget..........................13 AC 3.4 preparation of cash budget.................................................................................14 TASK 4.....................................................................................................................................14 AC 4.1, 4.2 Variance analysis and recommendation corrective actions.........................14 AC 4.3 Identifications of responsibility centres.............................................................16 CONCLUSION........................................................................................................................16 REFERENCES.........................................................................................................................18 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

3. Index of Tables Table 1: Calculation of total cost and per unit cost for a job......................................................2 Table 2: Preparation of budgeted and actual cost (In £).............................................................5 Table 3: Variance analysis..........................................................................................................6 Table 4: Production budget for July, august and September (In Units)....................................10 Table 5: Material purchase budget (In Kg)..............................................................................10 Table 6: preparation of Cash budget.........................................................................................10 Table 7: Calculation of budgeted cost for 4000 units...............................................................11 Table 8: operating statement reconciling both budgeted and actual results.............................11 Table 9: Calculation of per unit variances................................................................................11 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

4. INTRODUCTION Every business organization has to take effective decisions to run business successfully. Management accounting plays a very important role in the organization. It helps the enterprises in taking both financial and non financial business decisions. It is the process of preparing necessary reports according to the requirements of manger so as to take short term decisions (Kinney and Raiborn, 2012). In this report, different tools are applied for such purpose. It includes preparation of budgets, job cost sheet and variance analysis. Moreover, the report identifies the factors that can be used for measuring business performance. Furthermore, the report describes the ways to improve business performance by reducing its cost and improve its sales. Thus, it is clear that all the tools help the organization in achieving its set targets or objectives. THIS IS A SAMPLE ASSIGNMENT BUY ERROR-FREE ASSIGNMENT TO SCORE TOP GRADE CONTACT US: TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com TASK 1 AC 1.1 Classification of costs on the basis of element, function, nature and behaviour Cost is very important factor and it can be classified into different types. Cost classification on the basis of element, function, nature and behaviour are as follows: Element of cost: Cost is classified into three elements which are material cost, labour cost and overhead. Material cost is related to material purchasing cost for production purpose. However, labour cost involves labour wages and the other remaining costs are termed as overheads. Function: On the basis of function, cost can be classified into different types of activities. It includes production, administration and selling and distribution department costs (Alcouffe, Berland and Levant, 2008). Production overhead includes all production related TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

5. expenditures in the factory. It includes factory rent, productive wages and factory lighting. Administration overhead involves office expenditures such as stationery, office lighting and staff telephone expenditures. Moreover, selling and distribution cost involves advertisement and marketing related expenditures. Nature: On the basis of nature, cost can be classified into two types’ direct costs and indirect costs. Direct cost can be directly attributed to specific cost element like direct material cost and direct labour cost. However, indirect cost cannot be attributed to the specific cost element. Moreover, it is not directly related to the total production of the company. Hence, it is distributed on other basis such as direct labour hours. Fixed overheads come under indirect cost nature. Behaviour: There are three types of cost behaviour fixed cost, variable cost and semi variable cost. Fixed cost remains constant for the year and it does not change with the change in production (Kokubu and et. al., 2009). It includes depreciation, watchmen's salary and manger's remuneration. Variable cost changes with the production changes. If production increases then variable cost will be increased and vice versa. However, semi variable cost remains constant up to a certain production limit but after that it gets changed with the production. AC 1.2 Calculation of total job cost and per unit job cost Job costing: It is the process of determining the total expenditures incurred on a job... Overhead includes both fixed and variable overhead. As per the scenario, job cost sheet is prepared for identifying total cost and cost per unit for 200 units: Table 1: Calculation of total cost and per unit cost for a job Job cost sheet for Job no. 444 Particulars Direct material Direct Labour Fixed production overhead variable production overhead Total cost Unit cost Total cost 40000 54000 24000 36000 154000 770 Working note:  Direct material = 50kg*200 units* 4£ per kg. = 400000£  Direct labour = 30 hours* 9£ per hour * 200 units = 54000£ TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

6.  Fixed production overhead is absorbed on the basis of direct labour hours = Total overhead/Budgeted labour hours * Labour hours for 200 units = 80000£/20000*(200 Units *30 hours) = 80000£/20000*6000 = 24000£  variable production overhead = 6£ * (30 hours*200 Units) = 6£ *6000 hours = 36000£  Calculation of per unit job cost = Total job cost/Number of units = 154000£/200 Units = 770£ AC 1.3 Calculation of the cost by using absorption costing technique a) Allocation and apportion of overhead into three production departments Primary distribution Service Produc depart tion ment Mainte Basis of Total in Machine Machin Assembly Stores nance allocation (£) X (£) e Y (£) 1 (£) (£) (£) 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 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

7. 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 Produc depart tion ment Mainte Basis of Total in Machine Machin Assembly Stores nance allocation (£) X e Y (£) 1 (£) (£) (£) Primary distribution 103500 272264. 69764.7 49617.6 (Earlier table) 0.00 314490.19 70 245862.78 0 5 Direct 26161.7 Stores material 34882.35 6 8720.59 69764.7 - Direct machine 15877.6 49617.6 Maintenance hours 23816.47 5 9923.53 - 5 c) Overhead absorption rate for each of the production department X, Y and assembly Overhead absorption rate = Fixed overhead/ machine hours Overhead absorption rate for department X = 314490.19+ 26161.76+ 15877.65/80000 = 373189/80000 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

8. = £4.66 Overhead absorption rate for department Y = 272264.70+ 26161.76 +15877.65/ 60000 = 314304.11/60000 = £5.24 Overhead absorption rate for Assembly = 245862.78+ 8720.59+ 9923.53/10000 = 264506.90/10000 = £4.41 d). Calculation of the overhead Total overhead cost = 4.66+ 5.24+ 4.41 = 14.31 Total cost of the product= Material+ labour + overhead = 8+ 15+ 14.31 = £37.31 TASK 2 AC 2.1 Preparation of cost sheet and variance analysis Table 2: 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 Labour 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 Working Note  Material cost for 1900 Units = per unit material cost * number of units = 12£*1900 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

9. =22800£  Labour cost for 1900 units = Per unit labour cost * number of units = 10£*1900 = 19000£  Electricity cost:It is a semi variable cost that remains same for 1200 units and after that it gets changed.  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£  Cost per unit= Total cost / number of units Budgeted = 70000£/2000 units = 35£ per unit Actual = 69225£/1900 units = 36.43£ per unit Variance Analysis: It can be done by comparing the budgeted and actual figures that are explained below: Table 3: Variance analysis Budgeted cost 24000 18000 15000 8000 5000 70000 Particular Material Labour Fixed Overhead Electricity Maintenance Total Actual cost 22800 19000 15000 7625 4800 69225 Variance 1200 -1000 0 375 200 775 Variance Analysis: Company decided its budgeted cost for 2000 units and actual cost is calculated for 1900 units. In context to material, the budgeted and actual cost per unit is equal to 12£ per unit. The budgeted cost is 24000£ while the actual cost is incurred to 22800£ TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

10. for 2000 units and 1900 units respectively. Therefore, the variance rose to 1200£. However, the budgeted labour cost per unit is 9£ while in actual it is increased to 10£ per unit. Thus, it created negative impact for the company due to increased cost by 1000£. Fixed overhead remains constant and do not change with the production. It is constant to 15000£. In addition to it, electricity cost is semi variable cost that is constant to 1200 units and after that the electricity cost per unit will be 3.75£. The budgeted electricity expenditures are decided to 8000£ while in actual it incurred to 7625£. Therefore, the variance arises to 375£ and maintenance expenditures showed a variance of 200£. Due to the following reasons the overall variance incurred to 775£. It is calculated by difference between budgeted and actual cost amounted to 70000£ and 69225£ respectively. The budgeted cost per unit is decided to 35£. However, actually the cost per unit is incurred to 36.43£. Hence, it negatively impacts the organization because the actual cost is higher. Therefore, it becomes necessary for the organization to reduce its cost to mitigate the variances. THIS IS A SAMPLE ASSIGNMENT BUY ERROR-FREE ASSIGNMENT TO SCORE TOP GRADE CONTACT US: TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com AC 2.2 various performance indicators used to identify areas of potential improvements Performance indicators: These are the tools for measuring business performance. There are different types of key performance indicator which are available in every organization that is explained below: Turnover: Business performance can be measure by determining the business turnover. . It is considered as the total cash generated from business sales operations. Higher turnover indicates that business is performing better in the market. However, lower turnover is indication of worst business performance (DRURY, 2013). Thus, every business TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

11. organization has to make efforts to increase its sales on a regular basis so as to increase its profits. It can be done by providing better quality of goods and better customer services. Moreover, it can be done by making an effective marketing strategy. Profitability: It is another tool for business performance measurement. Higher profits contribute in improving the business performance and vice versa. A business can increase its profitability by increasing its turnover. Moreover, it can be increased by decreasing the cost (Malmi and Granlund, 2009). Customer satisfaction: If the satisfaction level of customers gets improved than it is beneficial for the company. It is a sign of improved business performance and it can be identified by getting customer feedbacks. The organization has to provide better quality of products at reasonable rate for such purpose (Cost and Mangement Accounting, n.d.). Moreover, the company has to provide goods or services according to customer choice and preferences. AC 2.3 Ways to reduce cost, enhance value and quality It is very important for the organization to reduce cost, enhance value and improve its quality so as to increase its profitability. Reduce the cost: Cost can be reduced by curtailment of unnecessary expenditures. Moreover, it can be increased by using upgraded technology for production. Furthermore, non-performing assets can be sold out that contributes to unnecessary cost factors. In addition to it, optimum utilization of resources and reducing the waste will lead to lower the cost to the company. On contrary, per unit costs can be decreased by producing large number of units (VanDerbeck, 2012). Enhance value: Business value can be increased by increase the business sales and profitability. It can be done by providing high amount of return to the shareholders. Moreover, expansion of business also contributes to increased business value. Quality: Quality can be improved by up gradation of technology on a regular basis. The organization has to use new technology of machinery for production (Chen, Weikart and Williams, 2014). Moreover, by using better quality of raw material the company can improve its product quality. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

12. Therefore, it can be concluded that reduction in cost, improving the product quality and enhancing the value lead to increase in sales and profitability. Moreover, it helps the organization to create a corporate image in the market. TASK 3 AC 3.1 Nature and purpose of budgeting process Budgeting process: Planning the operating activities of a business is termed as budgeting. It is a pre planned process of the business in order to make effective business decisions. It is a monetary plan of the business organization that estimates income and expenditures for a specific period. Nature of budgeting process: The nature of budgeting process revolves around different stages. It includes determination of possible revenues and expenditures by analysing the market behaviour. Revenues are forecasted by estimating the cash that can be generated from sales or other business operations (Zimmerman and Yahya-Zadeh, 2011). However, expenditures are forecasted by estimating the material cost, labour cost and overheads in terms of production, administration and selling and distribution overheads. In the budgeting process, initially standard revenues and expenditures are set by the organization so as to compare with the actual outcomes. It is done for determining the variance expenditures and incomes. The balance of budget may be surplus and deficit. If the actual revenues are higher than its expenditures; then it is called surplus. However, if expenditures are greater than standard or budgeted than it is termed as deficit budget. Purpose of Budgeting process: The main purpose of it is to create an estimation of future business revenues and expenditures so as to determine the profitability. Moreover, it is prepared to provide a financial framework to the managers for taking effective and strategic decisions (Datar and et. al., 2013). In addition to it, it helps the managers to compare the actual revenue and expenditure with the budgeted values for analytical purpose. It can be done through variance analysis method. Thus by doing this the management can identify the reasons for differences between actual and budgeted figures. AC 3.2 Appropriate budgeting method for the organization and its need There are different methods available to the organizations for budgeting purpose. The three budgeting methods are described below: TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

13. Incremental budgeting: It is the traditional way of budgeting process. In this method, the budget is prepared by taking current year's budget or actual values as base and every time the amounts are increased. In this method, both revenues and expenditures are increased by a certain percentage or value (Kaplan and Atkinson, 2015). It is considered as the simplest method of constructing the budget consistently. Moreover, it helps in maintaining coordination between different time period budgets. However, the disadvantage of this method is that it does not consider the changes impact. Moreover, spending are increased on a regular basis contributes to increase in total cost. THIS IS A SAMPLE ASSIGNMENT BUY ERROR-FREE ASSIGNMENT TO SCORE TOP GRADE CONTACT US: TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com Zero Based budgeting: It overcomes the limitation of in cement budgeting method as it starts from zero. In this method, initially management identify all the business activities and resources are allocated to the departments in order to get high amount of profitability. The advantage of this method is that it ensures optimum utilization of resources so as to reduce cost. Moreover, it identifies the waste activities so as to eliminate it. Top down budgeting: In this method, higher cost factors are determined at initial level. After that, lower cost factors are forecasted on the basis of higher level task cost (Cardinaels, 2008). It promotes upper level commitment and can helps to achieve business objectives. It helps the managers to take effective business decisions. As per the given scenario, the organization is using incremental budgeting method in which sales is considered as key factor. In this method, the organization is regularly increased its revenues and expenditures by taking one period budget as base. It may be increased by a certain percentage or by any amount (Mongiello, 2015). Moreover, the business is trying to maintain coordination between budgets for different time duration by adopting such method. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

14. Appropriate budgeting method: In all the three methods, it became clear that zero base budgeting is the most appropriate method because every time budget is prepared by taking absolute value to zero. Moreover, it does not assume that all the previous period business operations will take place in the current year. Therefore, initially the management identify the operating activities and its purpose. Moreover, alternative methods are identified to achieve such objectives and select the best method (Blocher, Chen and Lin, 2008). Thereafter, resources are allocated to the various business activities at least cost. Thus, it can be said that this method ensure optimum utilization of resources in an efficient manner. In addition to it, this method is also suggested because it eliminates the waste or scrap activities so as to reduce unnecessary nature of expenditures. AC 3.3 Material purchase budget and production requirement budget Table 4: Production budget for July, august and September (In Units) Sales 105000 Op. Stock 90000 13500 76500 15750 92250 105000 15750 89250 16500 105750 11000 94000 13500 107500 Cl stock (15% of the following month) Production Working Note: Calculation of closing stock of finished goods: 15% of next year sales July: 90000Units*15% = 13500 Units August: 105000Units*15% = 15750 September: 110000Units *15% = 16500 Units Table 5: Material purchase budget (In Kg) Material Require (2 per kg) Less- Opening stock 215000 52000 163000 184500 45000 139500 211500 52500 159000 Add- Closing stock (25% of the following month) Purchase 45000 208000 52500 192000 55000 214000 AC 3.4 preparation of cash budget Cash budget is prepared by estimating cash inflow and cash outflows for a certain period. Table 6: preparation of Cash budget TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

15. Particular Cash balance Cash Receipts Cash sales Total cash receipts Cash Expenditures Material Purchase Direct wages Variable overhead Fixed Overhead Bad debts Total cash July 16000 August -3250 September -22300 900000 916000 821250 818000 864000 841700 364000 322500 110500 75000 47250 336000 276750 99550 87500 40500 374500 317250 103270 87500 47250 expenditures Cash Deficit or 919250 840300 929770 surplus -3249.99 -22300 -88070 From the prepared budget, it is clear that in all the months’ business will have a deficit cash balance. Therefore, the organization has to make efforts increase its cash sources so as to eliminate the negative balance. For this purpose, the organization has to reduce the bad debts and its expenditures. Moreover, it has to increase its sales so as to generate high amount of cash. By doing this the company will be able to have surplus amount of cash availability. TASK 4 AC 4.1, 4.2 Variance analysis and recommendation corrective actions Table 7: Calculation of budgeted cost for 4000 units Particular Per unit cost Material Labour Fixed Overhead Total Budgeted 3840 3200 4800 11840 0.96 0.8 2.96 Table 8: operating statement reconciling both budgeted and actual results Particular Budgeted Sales 16000 Material 3840 labour 3200 Fixed Overhead 4800 Total 11840 Operating profit 4160 Actual 13820 3420 2690 4900 11010 2810 Variance 2180 420 510 -100 830 1350 Table 9: Calculation of per unit variances Budgeted 4 Particular per unit sales Actual 3.95 TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

16. Per unit cost Per unit profit 2.96 1.04 3.15 0.8 From the above statements, it is clear that total budgeted cost and actual cost will arrive to 11840£ and 11010£ respectively. However, per unit cost will be amounted to 2.96£ budgeted and 3.15£ actual. In addition to it, budgeted profit and actual profits are 4160£ and 2810£ respectively. Therefore per unit profit is 1.04£ for 4000 budgeted units and 0.80£ for 3500 actual sales. Variance in sales: Total budgeted sales are decided for 400 units while in actual only 3500 units were sold out. The total budgeted sales is decided to 16000£ while in actual only 13820£ sales in incurred. This creates a negative impact to the company by decline in sales to 500 units. Therefore, the company has to increase its sales by improving its quality and reduce its prices and marketing its products. THIS IS A SAMPLE ASSIGNMENT BUY ERROR-FREE ASSIGNMENT TO SCORE TOP GRADE CONTACT US: TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com Variance in cost: The amount of budgeted material and labour cost is 3840£ and 3200£. However, actual cost is incurred to 3420£ and 2690£ respectively. Furthermore, per unit budgeted material cost is 0.96£ and actual cost is 0.97£ it impacted the company in adverse manner. In addition to it, per unit budgeted labour cost is amounted to 0.8 and in actual it is 0.77£. Thus, the actual figure is lower than the budgeted so it is beneficial for the company. However, budgeted fixed overhead was 4800£ while in actual it get increased to 4900£. Therefore, the budgeted total cost per unit was decided to 2.96£ while in actual it get increased to 3.15£ per unit. Thus, it can be said that the organization has to decrease its material and fixed overheads in order to decrease the cost per unit. Material cost may be increase due to improper utilization of purchased quantity and due to wastage. Therefore, the TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

17. company has to ensure that purchased quantity of material are proper utilised in an effective manner. In addition to it, the organization has to ensure that material is not wasted by the labour. By doing this the company can decrease its total cost and cost per unit. Variance in profits: Company was decided profit per unit amounted to 1.04£. However, in actual the organization generated profit amounted to 0.8£. It is lower than the set standards and a reason for low profitability. It is due to lower the selling price per unit and increase the cost per unit. Therefore the company has to provide better quality of product and customer services at reasonable rates. Moreover, by adopting new technology it can increase its quality in order to increase its sales and the profitability. AC 4.3 Identifications of responsibility centres Responsibility centres: Purchase department is responsible in order to eliminate the material variances. He has to correctly identify the sources from where material can be purchased at reasonable rates. For that purpose they have to analyse the market and supplier terms. Sales department is responsible for decreasing in sales so they have to identify the reasons for such decrease (Whitecotton, Libby and Phillips, 2013). Moreover, selling and distribution department is also responsible for this purpose. This is because an inefficient marketing strategy also leads to lower the sales. Therefore, both this department has to first analyse the demand for such product and according to it production will be done. Moreover, they have to analyse the customer preferences and their buying behaviour and according to it changes should be done. In addition to it, production department also has to analyse the production cost and try to mitigate any increases in budgeted cost. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

18. CONCLUSION From the above report, it can be concluded that management accounting is vital for every organization. It helps the organization to reduce the cost so as to increase its sales and profitability. By doing this the organization can achieve its set business targets and objectives. This report describes that budgeting process is a tool for controlling the cost of the production. It can be done by comparing the actual and budgeted figures so as to know the variances and then take corrective actions to mitigate it (Needles and Crosson, 2013). Moreover, the report explains that by preparing cash budget is also very important tool that ensure adequate amount of cash availability. Thus, it can be concluded that management accounting is helpful for the organization in taking many business decisions regarding production, sales, cost and profitability. THIS IS A SAMPLE ASSIGNMENT BUY ERROR-FREE ASSIGNMENT TO SCORE TOP GRADE CONTACT US: TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

19. REFERENCES Books and Journals Alcouffe, S., Berland, N. and Levant, Y., 2008. Actor-networks and the diffusion of management accounting innovations: A comparative study. Management Accounting Research.19(1). pp. 1-17. Blocher, E., Chen, K. H. and Lin, T. W., 2008. Cost management: A strategic emphasis. McGraw-Hill/Irwin. Cardinaels, E., 2008. The interplay between cost accounting knowledge and presentation formats in cost-based decision-making. Accounting, Organizations and Society. 33(6). pp. 582-602. Chen, G. G., Weikart, L. A. and Williams, D. W., 2014. Budget tools: Financial methods in the public sector. CQ Press. Datar, S. M. and et. al., 2013. Cost accounting: a managerial emphasis. Pearson Higher Education AU. DRURY, C. M., 2013. Management and cost accounting. Springer. Kaplan, R. S. and Atkinson, A. A., 2015. Advanced management accounting. PHI Learning. Kinney, M. and Raiborn, C., 2012. Cost accounting: Foundations and evolutions. Cengage Learning. Kokubu, K., Campos, M. K. S., Furukawa, Y. and Tachikawa, H., 2009. Material flow cost accounting with ISO 14051. ISO Management System.9(1). pp. 15-18. Malmi, T. and Granlund, M., 2009. In search of management accounting theory. European Accounting Review.18(3). pp. 597-620. Needles, B. and Crosson, S., 2013. Managerial accounting. Cengage Learning. VanDerbeck, E., 2012. Principles of cost accounting. Cengage Learning. Whitecotton, S., Libby, R. and Phillips, F., 2013. Managerial accounting. McGraw-Hill Higher Education. Zimmerman, J. L. and Yahya-Zadeh, M., 2011. Accounting for decision making and control. Issues in Accounting Education. 26(1). pp. 258-259. Online TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE

20. Mongiello, M., 2015. Management accounting. [pdf]. Available through: <http://www.londoninternational.ac.uk/sites/default/files/programme_resources/lse/lse_ pdf/subject_guides/ac3097_ch1-3.pdf>. [Accessed on 30th November, 2015]. Cost and Mangement Accounting, n.d. [Pdf]. Available through: <http://www.icsi.in/Study %20Material%20Executive/Executive%20Programme-2013/COST%20AND %20MANAGEMENT%20ACCOUNTING%20%28MODULE%20I%20PAPER %202%29.pdf>. [Accessed on 30th November, 2015]. TOLL-FREE NO: +44 2038681671 EMAIL: help@instantassignmenthelp.com WHATSAPP NO: +44 7999903324 WEBSITE: https://www.instantassignmenthelp.com UK ASSIGNMENT WRITING SERVICE