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Provide Management Accounting Information Assignment

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Added on  2020-07-22

Provide Management Accounting Information Assignment

   Added on 2020-07-22

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PROVIDE MANAGEMENTACCOUNTINGINFORMATION
Provide Management Accounting Information Assignment_1
TABLE OF CONTENTSPROVIDE MANAGEMENT ACCOUNTING INFORMATION..................................................1Part A Written assignment ..............................................................................................................11 Does the organization allocate total cost of electricity?......................................................12 Basis for allocation of total cost of electricity ....................................................................13 Calculating the percentage and cost of total cost of each allocation...................................1Part B...............................................................................................................................................11 Title of report/Budgets........................................................................................................12 & 4 Department to which budget applicable.......................................................................13 Primary function of budget..................................................................................................85 Users of budget within and outside firm.............................................................................8REFERENCES................................................................................................................................9
Provide Management Accounting Information Assignment_2
Part A Written assignment 1 Does the organization allocate total cost of electricity?Yes, Rio Tinto allocate total cost of electricity across its different departments that aremining, processing and administration department. It can be said that according to use ofelectricity same is allocated among departments (Burkhard and et.al., 2012). 2 Basis for allocation of total cost of electricity For allocation of total cost of electricity simply through meters units of electricityconsumed by mining, processing and other departments is identified separately is identified. 3 Calculating the percentage and cost of total cost of each allocationUnitsMining department100043%Processing department70030%Administration60026%2300Cost per unit20Mining department20000Processing department14000Administration12000It can be seen from the table that units consumed by mining department is 1000 and 700units are consumed by processing departments as well as 600 units are consumed by theadministration. This reflects that 43% of units are consumed by mining department followed by30% is consumed by processing departments followed by 26% is consumed by administrationdepartment. From the cost table it can be seen that per unit cost is assumed to be 20 and overallelectricity bill for mining department is 20000, 14000 for processing department followed by12000 is allocated to administration department. Part B1 Title of report/BudgetsBudgets for the Rio Tinto related to varied departments and operations.2 & 4 Department to which budget applicable1
Provide Management Accounting Information Assignment_3
Figure 1Finished goods inventory budget(Source:Manufacturing budget, 2017)Above given budget is prepared by the inventory department of an organization which is Rio Tinto in order to keep track record of inventory that is in business.2
Provide Management Accounting Information Assignment_4

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