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Hospitality Management Accounting : Assignment

   

Added on  2021-04-17

7 Pages1437 Words96 Views
Running head: MANAGEMENT ACCOUNTINGManagement accountingName of the Student:Name of the University:Author Note

1MANAGEMENT ACCOUNTINGTable of ContentsIntroduction:....................................................................................................................................2Discussion:.......................................................................................................................................2Several cost of management accounting:........................................................................................2Relevance of various costs in decision-making process of organization:.......................................2Conclusion:......................................................................................................................................2

2MANAGEMENT ACCOUNTINGIntroduction:The report is prepared to discuss several cost associated with the managementaccounting. Behavior and nature of each management accounting cost is incorporated in thereport. Moreover, the relevance of each cost in the decision making process of business isevaluated. Cost in the management of accounting can be classified into different categories fordifferent purposes. Several bases are used for classifying cost that involves classification bytime, by elements, by changes in activity, according to ease of traceability, according to timingof charge against revenue and according to relevance of decision-making (Osadchy &Akhmetshin, 2015). Classification of costs helps in making decisions relating to costing andpricing of products. Discussion:Several cost of management accounting:In accordance to changes in volume and activity:Fixed cost- Fixed cost is a cost that is remains constant irrespective of level of activities.Any fluctuations in level of activities do not influence the cost that is incurred for a period withinturnover limits and certain level of output. Fixed cost does not arise with the production ratherthey arise with passage of time. Variable cost- Variable cost is cost that is incurred corresponding to level of output.Such cost varies proportionately and directly with the level of output produced. Direct labor anddirect material are the cost that varies directly with level of output produced. In according ease of traceability:

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