HI5017 Managerial Accounting.

HI5017
Managerial Accounting

Contents
PART-A......................................................................................................................................................3
Analysis of the case study given..................................................................................................................3
1. Sort of costing and describe three type of costing with examples........................................................3
2Infomation which are relevant and irrelevant for the decision making of appliance..............................4
3. Total cost incurred for the couple to laundry and computation............................................................5
1. Purchase of the Appliance (alternative 1)........................................................................................5
2. Self-service laundry (alternative 2)..................................................................................................5
3. Delivery laundry service (alternative 3)..........................................................................................7
4. Hiring of additional employees and its computation............................................................................7
5. Option to stay at current option or go forward with rental space? Number of children to be served?
Additional employees to be hired?..........................................................................................................9
Remain in the current Location...............................................................................................................9
Option B: Move to a larger facility........................................................................................................11

Part B: Journal Article Critique.................................................................................................................12
1. Parts of MAS in Apple and Cannon and evaluation of the relevancy in making the strategic decision
effectively..................................................................................................................................................12
2. Article focuses on the innovation process in firm and creation of the innovative and transmit
information in process. Explain how MAS contributes to innovation process.......................................14
3. 4 lesson learned from the article and its implication on the companies and given justification of
answers related to 2 outcomes from each companies.............................................................................15
References.................................................................................................................................................17

PART-A
Analysis of the case study given
1. Sort of costing and describe three type of costing with examples.
There are several types of costing such as fixed cost, variable cost and other operating sunk cost.
Fixed costing—this is the costing which is incurred by company on fixed basis annually and
does not change with the changes in the production unit. For instance, annual license fees paid by
company is $ 225 which is incurred annually on fixed basis.
Incremental fixed cost expenses- this is the different type of costing which is incurred by
company on fixed basis but it changes gradually with the time and does not change with the
changes in the unit. For instance, annual insurance fees paid by company is fixed at $ 3840
which may vary with the changes in time (Laudon, and Laudon, 2016)
Variable costs- This variable costing of the business is the cost incurred on the basis of the
incurred units. The cost of the variable cost depends upon the monthly charges. For instance,
laundry service is pegged at $ 52 per month.
2Infomation which are relevant and irrelevant for the decision making of appliance
There are several business costing which are incurred as below and would be relevant for the
decision making of the appliance
a) Costing required for making the initial investment.
b) Delivery charges of the appliance
c) Installation cost incurred for the appliance
d) Incurred cost for the appliance