ACCT5000 Management Accounting | Assignment

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ACCT5000 management Accounting

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Table of Contents
Introduction................................................................................................................................3
Issue 1.........................................................................................................................................3
a).............................................................................................................................................3
b)............................................................................................................................................4
Issue 2.........................................................................................................................................5
a).............................................................................................................................................5
b)............................................................................................................................................5
Conclusion..................................................................................................................................6
Recommendations......................................................................................................................6
Reference....................................................................................................................................7

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Introduction
The business is established to carry out various activities and in that there will be
consideration of various important elements. There is the requirement for various approaches
to be used in this process and in the undertaking of them various challenges are also faced. In
the report, all the issues will be identified and the manner in which they are to be dealt with
will also be considered. The cost account and cost behaviour will be undertaken and with
that, the manners in which financial information proves to be beneficial will also be
considered.
Issue 1
a)
Cost is the main aspect of the manufacturing process which shall be identified in order to
make various other decisions. By the identification of the cost, it will be possible to identify
the total expenses which have been incurred and the amount which is to be earned on the
same. The price which will be charged from the customers is to be decided in an appropriate
manner and that will be possible with the cost only (Kidane, 2012). The addition of the profit
margin will be made to the cost which will be providing the company with the appropriate
selling price.
The information in relation to the cost will be collected and then that will be used to
formulate the policies and strategies for the benefit of the business. There are many such
expenses which are incurred in the business but can be eliminated and they all will be
identified so that corrective measures can be taken for them. There is the breakeven that is
involved and it is the point at which the business will not be making any profits or losses.
This means the complete cost will be recovered at this stage and after that, the profits will be