Activity-Based Costing: Findings from Real-Life Manufacturing and Healthcare Business Studies

Managerial Accounting

Managerial Accounting 1
Executive Summary
The management accounting is the provision that is related to the financial data and advice to the
company for making use of accounting tools that mainly include budgeting, activity-based
costing and others. These tools are essential to be used in the organization for the development of
business. The rise in the competition is not allowing the company to conduct the business
activities without the activity-based costing method. The report includes the description related
to the two studies that is based on the real-life manufacturing and healthcare business. The
analysis of the selected studies has been done which include purpose, similarities and differences
with the outcomes. Further, the findings of the studies reflect the outcomes that help the
Australian companies in implementing an ABC system in their business organisation.

Managerial Accounting 2
Contents
Introduction......................................................................................................................................3
Explanation of activity-based costing..............................................................................................4
Advantages of Activity-based costing method............................................................................6
Accurate product cost..............................................................................................................6
Information for the cost behaviour..........................................................................................7
Cost information......................................................................................................................7
Explanation of the purpose of the two studies.................................................................................8
Similarities and differences in the findings of the two studies........................................................9
Similarities in findings of both the studies..................................................................................9
Differences in the findings of both the studies..........................................................................10
Outcomes from the two studies.....................................................................................................11
Article 1.....................................................................................................................................11
Article 2.....................................................................................................................................12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

Managerial Accounting 3
Introduction
The report is based on one of the topics of the management accounting. The management
accounting topics are activity-based costing (ABC), budgeting, standard costing and many
others. The topic that has been selected for this report is Activity-based costing. Activity-based
costing is one of the important tools that are used by the real-life organisations. The aim of the
report is to explore the findings from the literature research from the selected studies. The studies
that have been selected include Article 1- Activity-Based Costing (ABC) – An Effective Tool for
Better Management and Article 2- The Excellence of Activity-Based Costing in Cost
Calculation: Case Study of A Private Hospital in Turkey.
Further, the details related to the management accounting topic has been discussed. In addition,
the explanation of the two studies, the research question and the similarities and differences in
the findings of the two studies are discussed in the report. In the end, the specific outcomes or
lessons learned from the two studies are discussed. These findings will further provide the
benefits to the Australian companies who are making use of the Activity-based costing
management accounting tool in their business operations.