Management Accounting Research & Practice

This assignment delves into the field of management accounting research, examining its evolution over 25 years and highlighting the role of innovation in shaping its future. It discusses the integration of management accounting into management control systems and explores the impact of lean manufacturing and cost consciousness on contemporary practices. The assignment also touches upon the application of management accounting principles in different industries like hotels & restaurants and the UK service sector, considering the influence of factors like regulation and informatics.

Running head: MANAGEMENT ACCOUNTIGN
Management Accounting
Name of the Student
Name of the University
Authors Note
Course ID

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Executive summary:
Management accounting refers to the procedure used in the planning of the management
reports together with the accounts that helps in providing timely and appropriate
understanding of the monetary information to the executives. Such kind of management
accounting information helps the managers in undertaking the short and long term decisions.
On the alternative, the financial accounting assist in providing the information to the financial
users that helps in correct implementation of the business functions. Cost accounting on the
other hand helps in determining the cost that is engaged in the sale of products that is
manufactured by implementing numerous techniques and means. As evident in the first part
of the case study the ultimate purpose of this study is ascertain the cost of overhead that is
incurred in determining the product cost. The second part is engaged in the assessment of the
cash flow in order to determine the potentiality of the new plan that can be implemented by
the manager.

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Table of Contents
Assessment task part A:.............................................................................................................4
Answer to requirement 1:...........................................................................................................4
Answer to requirement B:..........................................................................................................4
Answer to question C:................................................................................................................5
Assessment Task Part B:............................................................................................................6
Answer to requirement A:..........................................................................................................6
Answer to requirement 2:...........................................................................................................7
Revenue generated under the current plan:................................................................................8
Yearly Membership Revenue:....................................................................................................8
Total amount of Court Fees:......................................................................................................8
Total volume of Sales revenue derived:.....................................................................................9
Sales generated under the new plans of membership:...............................................................9
Revenue derived from the previous membership:.....................................................................9
Revenue generated from the usual membership:.......................................................................9
Total volume of sales proceeds generated:..............................................................................10
Effect of sales and cash flow:...................................................................................................10
Answer to requirement 3:.........................................................................................................11
Conclusion:..............................................................................................................................12
Reference List:.........................................................................................................................13

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Assessment task part A:
Answer to requirement 1:
Answer to requirement B:
Bill of the Activities:

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Answer to question C:
From the above stated situation an important assertion can be bought forward by
stating that the tabular format of computations carried out above represents the overhead cost.
Additionally, there are indirect costs which offers an assisting support to the procedure of
production or alternatively the intent of distributing the cost (Chenhall and Moers 2015).
Furthermore, the case study introduces the situation which brings forward that there are
several indirect cost which is needed to be cited in the computation of cost but these costs are
yet to be recorded. Direct cost refers to those that arises from the manufacturing of goods and
service which is delivered (Kamala et al. 2015). In the process of production direct cost
forms, the most important factor nevertheless there are certain state of affairs where it is not

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possible to manufacture goods without incurring any form of related costs (Fullerton,
Kennedy and Widener 2014). It is noteworthy to denote that to determine the cost of
Lamington, an important consideration must be paid to take into the considerations the direct
cost that is associated with the products which is provided below;
a. Direct cost associated with the labour
b. Charges associated with the freight inward
c. Direct costs associated with the materials
Assessment Task Part B:
Answer to requirement A:
The case study evidently puts forward that the HLW has derived revenue from
namely two forms of different sources. These sources are revenue that is generated from the
annual membership and the revenue from the court in the form of fees (Lavia López and
Hiebl 2014). Consequently, it is noticed that greater than 40% percent of the total sum of
revenue is generated from the annual membership for the sum of two months. By considering
the left over part the revenue that is generated from the court fees is in terms of the annual
basis. Along with this the flow of money from the fees derived from court is not even for
every month. At the time when the business hits the peak form it is evidently found that the
flow of cash from the court fees is higher during that time and the revenue is greater than
45% of the total amount of revenue (Kotas 2014). On the other hand, during the months of
May to September an evidence has been noticed that the fees that is collected from the court
is less and only cover approximately 15% of the total sum of sales proceeds.
As evident from the HLW application of the new membership plan, it is necessary to
assemble about 80% of the total amount of sales revenue within the span of first month of
accounting year. (Hopper and Bui 2016) In addition to this, HLW will be capable of

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obtaining several benefits that is listed below the until the application of new plan is
implemented by HLW;
a. On the application of the new plan HLW would be in the position of gaining the
advantage of unhindered volume of cash flow from the functional sources from the
annual membership (Stede 2016). As evident from the current plan, the club would be
under obligation of remaining reliant on the individual program namely the hourly
charges that is derived by the court for deriving greater 50% of total amount of
revenue.
b. On implementing the new plan HLW would be able to gain benefit as this would
facilitate a platform which would enable the club in generating the steady amount of
cash flow for every month (Hald and Thrane 2016).
c. With the application of the new plan, HLW will be in the beneficial position because
the supervisor of the club will be in the position of gaining more than 80% of the total
amount of revenue in the early period of three months in compliance with the new
cash flow strategies rather than waiting for the completion of six months (Bromwich
and Scapens 2016). Therefore, such kind of benefit would help HLW in preparing the
appropriate use of the assembled funds by considering the several different forms of
decisions as and when necessary.
Answer to requirement 2:
The case study evidently puts forward by stating that there are several such issues
which is emphasized and consequently there are specific number of assumptions that is
necessarily required to be undertaken in getting the understanding of the effect of new
membership plans to increase sales (Shields 2015). There are certain stated assumptions that
can be made;

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a. It is necessary to make 100% use of court when the business is hitting the peak time
b. Around 60% of the total use of the capacity should be made during the non-peak time
c. It is estimated that around 40% of the use of court should be made when the business
hits the lean time (Marshall 2016).
Revenue generated under the current plan:
The below stated calculations provides that it is necessary to determine that effect of
present sales by making into the use of the methodical method of ascertaining the earlier
defined assumptions;
Yearly Membership Revenue:
Total amount of Court Fees:

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Total volume of Sales revenue derived:
Sales generated under the new plans of membership:
From the above stated case study the analysis provides that the club would be able to
generate from sales in agreement with the new plans of membership and the same is stated in
the below tables;
Revenue derived from the previous membership:
Revenue generated from the usual membership:

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Total volume of sales proceeds generated:
Effect of sales and cash flow:
A tabular representation is provided below that helps in providing an understanding of
the impact on the cash flow and the amount of sales revenue that is generated from the
periodic sales;
The above stated computations provides that an important assertion which can be
considered in the present case study. As evident it has been understood that the amount of
sales revenue that is generated by the HLW has substantially grown by $2,87,332 unless it is
noticed that they commence the strategy of application of the new plan. As a result, this
would enable the company to make the better use of court during the business seasons
(Williams 2014). This can be done by taking account of the sales revenue stated under the
present plan. In addition to this, the circumstantial evidences presented from the case study
provides that the above stated calculations it is evident that the usage of new plans, the club
would be able to make collection of large proportion of shares for the expected sum of
revenue from sales during the month of October (Lanen 2016).

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Answer to requirement 3:
As evident from the above stated case study the revenue that is generated from the
case study represents that it is greater in regard to the plans that is made in the previous
instances. This primary reason behind this is that a large amount of factors is necessarily
required to be considered when decisions are made in the implementation of the new plan
(Lorenz 2015). Certain important factors are taken into the considerations on implementing
the below listed assumptions,
a. The analysis provides that the fees that is generated from the membership would
increase from the application of the new plan since an improved structure of fees is
better than the previous structure of fees. As a result of this, it is expected that there
may an instances of loss of members after the implementation of the new plan of
membership (Chenhall and Moers 2015). Additionally, it is has been found that there
are certain students that are not reliant in respect of the finance and may not be able to
afford greater charges of fees together with the renewal of the annual membership
plans relating to the new structure of fees. In addition to this, after assessing the result
of the consequence, it becomes vital to assess the feedback that is derived from the
members.
b. On implementing the new plans, the administration would be able to make the
collection of overall fees for the beginning period of three months (Velasquez,
Suomala and Järvenpää 2015). With the help of this procedure the management would
be able to reduce the cost of assembling the sales revenue generated from the court
fees together with the planning of the periodic accounting records for the amount of
revenue derived. Therefore, it becomes necessary to take account of the cost
reductions strategies at the time of assessment.

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c. Within the span of six months, the administration expects that the would lose some
members (Otley 2016). The management is under the obligation of implementing the
new plans or else they would fail to attain the expected volume of revenue.
d. An important assertion regarding the club can be bought forward by stating that the
club is under obligation of performing the special campaign as this will enable the
club in promoting the new plans (Cooper 2017). In addition to this, the cost that
would be incurred at the time of promotion campaigns must be taken into the account
at the time of computing the net income together with the cash flow derived from the
implementation of the new plans.
Conclusion:
On arriving at the concluding note, the case study provides an explanatory situation
that the activity based costing is regarded as the most beneficial method of costing. There are
several forms of business information that is needed in the execution of the business activities
and the same should be considered at the time of determining the cost of product. A
circumstantial evidences suggest from the case study that adequate business information has
been complied in determining the cost of every activity. Furthermore, the activity based cost
is referred as the business cost that usually take account of both the ill effects and good
effects of the cost that is incurred by the business. An important consideration in this regard
is that the activity based costing is easy to understand and implement to ascertain the current
cost incurred by the business. On a considerable note, the study evidently provides that
activity based costing is regarded as the beneficial mode of costing because it helps the
management in making informed and correct decisions.

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Reference List:
Bromwich, M. and Scapens, R.W., 2016. Management accounting research: 25 years
on. Management Accounting Research, 31, pp.1-9.
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, Organizations and
Society, 47, pp.1-13.
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, Organizations and
Society, 47, pp.1-13.
Cooper, R., 2017. Supply chain development for the lean enterprise: interorganizational cost
management. Routledge.
Fullerton, R.R., Kennedy, F.A. and Widener, S.K., 2014. Lean manufacturing and firm
performance: The incremental contribution of lean management accounting
practices. Journal of Operations Management, 32(7), pp.414-428.
Hald, K.S. and Thrane, S., 2016. Management Accounting and Supply Chain Strategy. In 1st
International Competitiveness Management Conference.
Hopper, T. and Bui, B., 2016. Has management accounting research been
critical?. Management Accounting Research, 31, pp.10-30.
Kamala, P., Struwig, J., Bornman, M., Boersman, R., Vermaak, M., McGill, M., Jordaan-
Marais, J., Matthew, J., Hurter, C. and Taylor, P., 2015. Principles of Cost Accounting. OUP
Catalogue.
Kotas, R., 2014. Management accounting for hotels and restaurants. Routledge.

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Lanen, W., 2016. Fundamentals of cost accounting. McGraw-Hill Higher Education.
Lavia López, O. and Hiebl, M.R., 2014. Management accounting in small and medium-sized
enterprises: current knowledge and avenues for further research. Journal of Management
Accounting Research, 27(1), pp.81-119.
Lorenz, A., 2015. Contemporary management accounting in the UK service sector (Doctoral
dissertation, University of Gloucestershire).
Marshall, D., 2016. Accounting: What the numbers mean. McGraw-Hill Higher Education.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Shields, M.D., 2015. Established management accounting knowledge. Journal of
Management Accounting Research, 27(1), pp.123-132.
Van der Stede, W.A., 2016. Management accounting in context: Industry, regulation and
informatics. Management Accounting Research, 31, pp.100-102.
Velasquez, S., Suomala, P. and Järvenpää, M., 2015. Cost consciousness: conceptual
development from a management accounting perspective. Qualitative Research in
Accounting & Management, 12(1), pp.55-86.
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education.