Visualization And Computer Graphics

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student
Name of the University
Author's Note:

MANAGEMENT ACCOUNTING1
Executive Summary
The purpose of this report is to state why it is essential for any business to know what it costs to
make a product or provide a service in a systematic way, which also provides benefits to
management of having accurate cost information. The characteristics of management accounting
information, which helps management to make effective decisions, has also been discussed in the
report. In addition, the report covers certain benefits gained from analyzing cost behavior along
with some further discussion on methods used to obtain cost formula. Lastly, some general issues
related to the collection of data for analysis has been discussed with some recommendations to
mitigate the problem.

MANAGEMENT ACCOUNTING2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Response to Issue no.1:................................................................................................................3
a) Importance of accurate cost information.......................................................................3
b) Management accounting information............................................................................5
Response to Issue no. 2:...............................................................................................................6
a) Benefits gained from analyzing cost behavior..............................................................6
b) Common problems faced in the process of collecting information for analysis...........8
Conclusion.......................................................................................................................................9
Recommendations............................................................................................................................9
References......................................................................................................................................11

MANAGEMENT ACCOUNTING3
Introduction
Cost information related to a product or service is an important element in a business,
which also provides benefits to the management of having accurate cost information. The
characteristics of management accounting information, which helps management to make
effective decisions, has also been discussed below. In addition, certain benefits are there which
can be gained from analyzing cost behavior, which strengthens the effort of management to plan
and effectively control the cost of business with some further discussion on methods used to
obtain cost formula. Lastly, some general issues related to collection of data for analysis have
been discussed with some recommendations to mitigate the problem.
Discussion
Response to Issue no.1:
a) Importance of accurate cost information
It is important for any business, in this case, Henganofi Corporation, to know what it costs
to make a product or provide a service in a systematic and properly recorded way. There should
be proper information related to the cost of products or services as if the business is not aware of
the relevant cost of its product; it will lead them to operate in the dark. The responsibility of
business is to measure its profit along with the right to measure its cost (Adigbole and
Osemene).1All the costs must be carefully recorded by them so that profit can be ascertained
every year, and management can get relevant information to implement their decision. The cost
information is required for the following purposes:
1 Adigbole, Ezekiel, and Olubunmi Osemene. "Strategic Cost Management And Accuracy Of Cost Information In
Selected Manufacturing Firms In Lagos And Ogun States, Nigeria." International Journal of Accounting and
Finance (IJAF) 8, no. 1 (2019): 129-151.