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Activity Based Costing in Management Accounting - Doc

   

Added on  2021-06-14

15 Pages2651 Words59 Views
ManagementAccountingCodan Limited

Activity Based Costing 1Executive summary In the era of competition, the managers of the company make use of different tools of management accounting so that they can make effective decisions for the organization. The report includes one of the major management accounting tools that can help the managers of Codan limited while making the decision. This tool is Activity-based costing model which helps the company in allocating the cost effectively which is the only way to make the effective decisions for the company. The report includes the brief description of ABC model and the strategies of the company.

Activity Based Costing 2ContentsIntroduction......................................................................................................................................3About Codan Limited..................................................................................................................3ABC model......................................................................................................................................4Features of ABC model...................................................................................................................5ABC model supports goals and strategies of Codan Limited..........................................................5Codan mission and objectives.....................................................................................................5Codan Limited corporate strategies.............................................................................................6Increasing the revenue.............................................................................................................6Profitability and sales of Codan group....................................................................................7Strategy to maintain a competitive advantage.........................................................................7ABC model support to accomplish the Codan strategies................................................................7Recommendations..........................................................................................................................10Suitable management accounting tool...........................................................................................11Conclusion.....................................................................................................................................12References......................................................................................................................................13

Activity Based Costing 3Introduction The purpose of the report is to explain the top management of the Codan Limited about the ABC model of management accounting that can help them in managing the information and taking theappropriate decisions for the company. The effective way to make them understand the ABC model is an alignment of a model with the current corporate strategies of the company. Therefore, the report includes brief details related to ABC model and also about the organization.In the end, the report states the alignment of the strategies with the ABC model and recommendation while implementing Activity-based costing model.About Codan Limited Codan Limited is well-known manufacturer and suppliers of the communication, mining, detection technology. The company makes use of the technology with the help of which they cansolve the problems related to the communications, safety, productivity, and security(Codan, 2018). The company came into existence in the year 1959 in Adelaide, South Australia. The company is one of the listed companies in Australian Securities Exchange. The company offers its products in more than 150 countries (Codan, 2018).

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