HI5017 Managerial Accounting: Activity-Based Costing and Benchmarking for Chorus Limited

HI5017 Managerial Accounting
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Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
a) An explanation of ABC model and its features..................................................................5
b.) An explanation of how ABC model aligns with the current goals and strategies of the
company.......................................................................................................................................6
i) An identification of the company’s mission and objectives....................................................6
ii) An identification of the company’s corporate strategies:.......................................................6
iii) An explanation of how ABC model assists in achieving the company's strategies:..............7
c) Provide at least two (2) recommendations about the implementation of ABC model for your
company based on your research findings...................................................................................8
d) Apart from ABC model, suggest one other management accounting tool suitable for your
company and justify it.................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Executive Summary
ABC model indicates the Activity-based costing which is one of the accounting methods that
identifies the activities that a company performs and then convert indirect costs to products.
Activity-based costing provides cost volume and profitable relationships. In this report, it defines
the ABC model and it features which are used in accounting method and can be adopted by
Chorus company which is providing telecommunication services. ABC model has assigned the
strategies of the company and estimate cost of each service provided by the company. Report
assignments have different goals of the ABC model that is used in the company. This report also
explains the objectives which the company want to achieve. There are 2 recommendations which
are used in the implementation of ABC model. In this assignment, there is one other tool of
management accounting which is suitable for the company.
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Introduction
Activity-based costing is a method that is used to identify information and costs of services
provided by chorus limited to improve business processes. In the activity-based costing, one can
analyze activities, processes, and cost of the products and calculate the total cost of them. In this
report, there is a discussion about the ABC model and the features which are used in the ABC
model. There are different goals of activity-based costing which are used to achieve the
objectives of a company. This report includes various goals like to analyze the inaccurate cost
information and to help the management in the decision-making process. Abc model explains the
strategies and various objectives of the company. The company gets different benefits while
using the activity-based costing method.
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