logo

Analyse Various Costing Techniques - Jeffrey and Son's

18 Pages4863 Words202 Views
   

Added on  2020-01-15

Analyse Various Costing Techniques - Jeffrey and Son's

   Added on 2020-01-15

ShareRelated Documents
MANAGEMENTACCOUNTING
Analyse Various Costing Techniques - Jeffrey and Son's_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................41.1 Different types of classification of cost.................................................................................41.2 Computation of total cost and unit cost of job 444 by making use of job costing.................51.3 Computation of cost of exquisite by making use of absorption costing technique...............61.4 Analysis of cost data of exquisite using appropriate techniques...........................................8TASK 2............................................................................................................................................92.1 Preparation and analysis of routine cost reports....................................................................92.2 Use of performance indicators in order to identify potential improvements in business....112.3 Recommendation for cost reduction and value enhancement for business.........................12TASK 3..........................................................................................................................................133.1 Explanation of purpose and nature of the budgeting process..............................................133.2 Selection of appropriate budgeting methods in accordance with the needs of organization....................................................................................................................................................143.3 Preparation of production and material purchase budget....................................................143.4 Preparation of cash budget...................................................................................................15TASK 4..........................................................................................................................................164.1 Computation of variances along with the identification of possible causes andrecommendation for corrective actions......................................................................................164.2 Preparation of reconciliation operating statement...............................................................174.3 Management report in accordance with the identified responsibility centres......................17CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................19
Analyse Various Costing Techniques - Jeffrey and Son's_2
INDEX OF TABLESTable 1: Computation of cost of Job 444.........................................................................................5Table 2: Computation of total cost of exquisite...............................................................................6Table 3: Allocation of cost of support departments on the basis of machine hours........................6Table 4: Units to be produced .........................................................................................................7Table 5: Computation of total cost of exquisite...............................................................................8Table 6: Allocation of cost of support departments on the basis of labour hours...........................8Table 7: Units to be produced .........................................................................................................8Table 8: Routine cost report of September......................................................................................9Table 9: Computation of standard budget at 1900 units................................................................10Table 10: Production budget of Jeffrey and Son's .......................................................................14Table 11: Material purchase budget of Jeffrey and Son's .............................................................15Table 12: Cash budget of Jeffrey and Son's ..................................................................................15Table 13: Computation of amount receivable from debtors..........................................................15Table 14: Computation of amount of overhead payment..............................................................15Table 15: Computation of production cost ...................................................................................16Table 16: Sales budget...................................................................................................................16Table 17: Computation of variances of Jeffrey and Son's ............................................................16Table 18: Reconciliation operating statement of Jeffrey and Son's ..............................................17
Analyse Various Costing Techniques - Jeffrey and Son's_3
INTRODUCTIONManagement accounting is considered as an important part of accounting that is mainlyassociated with costing and budgeting. These tools play important role while taking differentmanagement decisions associated with the determination of cost of production and operationalactivities. In this process, business entity uses different costing tactics for handling of differentmanagement and business operations based on the production of different goods and pricing(Bhimani and Bromwich, 2009). These techniques help organization for selection of appropriatestrategies for reduction of cost and increase in profit volume. Present study is going to analysisvarious costing techniques with reference to the case of Jeffrey and Son's Ltd. In this process,this report is examine different types of cost and budgets along with their practical applicabilityin the given case scenario. In addition to this, cost report will be prepared for evaluation ofpresent conditions of business and for taking appropriate management decisions. TASK 11.1 Different types of classification of costCost is termed as different expenditure made by an organization for the completion ofbusiness activities. Cost of business can be categorized in below mentioned elements: Type of element Description ElementsElement is determined two type of cost such as direct and indirect cost.Direct costs include all expenses incurred during the productionactivities of organization such as material, labour, lighting and plant etc(Lucey, 2002). On the other hand, indirect cost is mainly associatedwith other operations that ensure smooth production and operations andactivities. Example of indirect cost is lubricating oil, small tools etc. FunctionClassification of cost is carried out with various functions and activitieswhich are Administration, Distribution, Research and Development,Selling, Finance, Production management and Quality Check.NatureThe nature of expense is determined the cost in the from of material,labour as well as overhead expenses (Prior, 2004). Material expensesare mainly related with the purchase of raw material, labour expensesare based on the wage rate that are considered as human resources andoverhead expenses include other expenses that influence production4
Analyse Various Costing Techniques - Jeffrey and Son's_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting Assignment (MA)
|20
|5365
|224

Management Accounting - Jeffrey and Sons Ltd.
|20
|4687
|70

Assignment on Cost and Management accounting
|21
|5954
|97

Case Study of Jeffrey and Son's | Report
|23
|5849
|40

MANAGEMENT ACCOUNTING INTRODUCTION 1 TASK 11 AC 1.1 Classification of different types of cost1 AC 1.2 Unit cost and total job cost for Exquisite using absorption costing 3 Method3
|21
|6431
|412

Role of Management Accounting
|20
|5348
|89