StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Management Accounting - Assignment Example

Cite this document
Summary
When the company produces one foot of PVC pipe at $0.30 and sells it at $0.39, the company makes $0.09 as profit for every foot produced…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.6% of users find it useful
Management Accounting
Read Text Preview

Extract of sample "Management Accounting"

Download file to see previous pages

At this moment, the strategies that are to be applied in this case are related to the performance of the company are no longer connected to the profitability of the company (Shaffer, 23). Thus, as the strategy to compare overhead costs and overall productivity of the company, it is clear that the company is operating at net loss and strategies should aim at reducing the burden on operating losses. Thus, a strategy to increase performance would consider cutting back on losses an improvement plan.

Following the calculations below, the performance of the company depends on the use of available resources in the production of pipes. Based on the cost of raw material and the units produced it is clear that non-overhead costs remained the same at $0.15 considering 10,000,000 feet of pipe costing $1,500,000 and/or 6,000,000 feet costing $900,000. If the company is to trade the new batch of pipes at $0.35, then the company would be gaining $0.1 as profit for every foot of pipe sold. Based on the table below, decreasing the price of the pipes would be the best decision for the company to cut back on losses and acquire an economies of scale strategy.

There are various levels of costs involved in the case of Riverside Hotel. These involve fixed, variable, and sunk costs. In terms of the fixed costs, all overhead costs are fixed and include the cost of acquiring the equipment for preparing meals, the premises, power, and heat. Specifically, one of the fixed overhead costs include the price of the oven which is priced at $20,000. On the other hand, non-overhead costs include the price of the salad which is $1 and the prime rib which costs $7.

The fixed price of the prime rib and the salad make up the cost of materials. However, for every meal made, the used ingredients add up to the final price. In this case, the price of making dinner using the prime rib and salad is fixed at $8 assuming that there is no labor, equipment, and power

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Management Accounting Assignment Example | Topics and Well Written Essays - 1000 words - 3”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1666231-management-accounting
(Management Accounting Assignment Example | Topics and Well Written Essays - 1000 Words - 3)
https://studentshare.org/finance-accounting/1666231-management-accounting.
“Management Accounting Assignment Example | Topics and Well Written Essays - 1000 Words - 3”, n.d. https://studentshare.org/finance-accounting/1666231-management-accounting.
  • Cited: 0 times

CHECK THESE SAMPLES OF Management Accounting

Management Accounting and Decision Making

Task 1 Cash Budget   Months Particulars April May June July August September Revenue 27,000 41,850 67,500 111,600 125,550 81,000 Cash Purchases 5,400.... 8,370.... 13,500.... 22,320.... 25,110.... 16,200....               Cash Sales 8,100 12,555 20,250 33,480 37,665 24,300 Cash from credit sales - - 18,900....
8 Pages (2000 words) Essay

Why Do Managers Want to Manipulate Their Budgets

However, the aggregate accounting performance from his action is focusing on organization as whole.... hellip; In most cases, the approval process takes a longer time than preparing and this is because the managers have to decide on prioritizing and the involved discussion between the management team.... In fact, the process of approving budget involves the following steps: budget consolation, reviewed by financial staff, reviewed by top management, discussion with division manager, and making the tough decision....
8 Pages (2000 words) Coursework

Management Accounting 3

Balanced score card have evolved from being a simple performance measuring tool to one of the highly used strategic management tools organization could ever have.... The balanced score card is a strategic planning and measuring tool which is basically used to align the business activities undertaken by the firms with its strategies and vision....
4 Pages (1000 words) Essay

Management Accounting Assignment

The assignment 'Management Accounting Assignment' devoted to managerial accounting, which is not standardized like the financial statements, thus there are many variations in the types of reports that are prepared.... Cost accounting is correlated with managerial accounting work since it is highly used in the preparation of managerial accounting work.... hellip; The report created in managerial accounting are not standardized like the financial statements, thus there are many variations in the types of reports that are prepared....
4 Pages (1000 words) Assignment

Management Accounting case study assignment

In case of Condition 1, when Clearday operates by using rented airplanes from Plummet aviation then the total annual cost stands to £ 28000 as the total operating hours in a year is 400 and the rent paid is £70 per hour.... In such case, Clearday does not have to incur any other… It is only concerned about the rent it has to pay. In case of condition 2 when Clearday wishes to own an airplane so that they do not have to rent it then, they are faced to some other additional costs like the cost of maintenance etc....
4 Pages (1000 words) Essay

Administration Techniques in Management Accounting

This assignment "Administration Techniques in Management Accounting" discusses determine and cost the cost drivers by considering the total activity cost and the amount of the activity that was performed.... This is done by dividing the total activity cost for the period.... hellip; Activity-based costing is the cost attribution to cost units on the basis of the benefit the product receives from the activity performed such as ordering, material receiving, and handling, setting up machines, scheduling of jobs, or assurance of quality....
4 Pages (1000 words) Assignment

Performance of Easy Hotel and Intercontinental Group

The hotel group currently has a hotel portfolio embracing 1700 rooms and has three fully owned hotels and 17 franchised hotels operating in nine countries.... Its profits have increased to £3.... million and… The profits before tax have been reported to increase to £2 million.... The key performances metrics are as reported by the company are occupancy rate, average daily rate (ADR) and profits per room The franchised hotels performed amazingly in the recent year....
14 Pages (3500 words) Essay

Strategic Management Accounting

This actual and planned comparison of the cost and price is greatly required and used by the management.... This actual and planned comparison of the cost and price is greatly required and used by the management.... This comparison would clearly highlight whether the required level of the organizational short term and long term goals and objectives are achieved or the management has failed to achieve the required level of organizational objectives in the most required way and most required manner....
12 Pages (3000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us