ANZ Bank: Assistance of Activity Based Costing in Managerial Accounting

Managerial Accounting
Assistance of Activity Based Costing
18ANZ Bank

MANAGERIAL ACCOUNTING 1
Executive Summary
The records of bookkeeping talk about various stories of how a business spends and earns
money. Management accounting represents this information or data in a way that will be
valuable for taking strategic decisions for the operations of the company. The aim of this
report is to discuss how tools of management accounting are useful in the business
organization and what areas need to be considered while implementing those tools.

MANAGERIAL ACCOUNTING 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Activity Based Costing and its features.................................................................................3
Features..............................................................................................................................4
Profile of ANZ Bank..............................................................................................................5
Mission and Objectives of ANZ Bank...............................................................................5
Objectives...........................................................................................................................5
Strategies of ANZ Bank.........................................................................................................6
Marketing Mix of ANZ Band............................................................................................6
Implementing Activity-based Costing for Assistance in Achieving Strategies of ANZ Bank
................................................................................................................................................7
Reviewing the financial reports of the company................................................................8
Establish aims and necessities of the ABC system............................................................8
Find main activities............................................................................................................8
Tracing overheads to activities...........................................................................................8
Trace overhead to the cost objects.....................................................................................8
Compute the cost of production of every cost object.........................................................8
Utilizing the analysis of activity-based costing for decision making and enhancements. .8
The recommendation in regards to the implementation of Activity-based costing...............9
The suggestion of Management accounting tool...................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

MANAGERIAL ACCOUNTING 3
Introduction
Accountancy is said to be a methodology of recording, categorizing, and reporting the events
and transactions of the business organization. It delivers feedback to the management in
regards to the financial outcomes and performance of the company (Accounting tools, 2018).
This report will be focusing on one of the important accountancy concepts that are
management accounting and its tools. Management accounting is also known as cost
accounting. It is the procedure of evaluating the operations and cost of business in order to
create internal financial report, account, and records to assist executives in the process of
decision making in attaining goals of the company (Nørreklit, 2017). The tool of management
accounting that will be discussed in this report is Activity-based costing and its features.
Along with this, an overview of the ANZ Bank will be provided with its objectives and
mission. The report will help in explaining how activity-based coating can support ANZ
Bank in meeting its goals and strategies. The recommendation will be provided for the
execution of activity-based costing and suggestion of one more tool of management
accounting that could be used by ANZ Bank to attain goals, objectives, and strategies.
Activity Based Costing and its features
Source [(Knowledge Hut, 2018)]