Management Accounting

Running head: MANAGEMENT ACCOUNTING
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MANAGEMENT ACCOUNTING

MANAGEMENT ACCOUNTING 1
Table of Contents
Q1...............................................................................................................................................2
Q2...............................................................................................................................................3
Structure of market.................................................................................................................3
Q3...............................................................................................................................................5
Q4...............................................................................................................................................6
Fiscal Policy...........................................................................................................................6
Environmental Policies of the United Kingdom Government...............................................7
Supply Side Policies in the United Kingdom.........................................................................7
Focused and competitive Tendering..................................................................................8
Privatization.......................................................................................................................8
Q5...............................................................................................................................................8
References................................................................................................................................10

MANAGEMENT ACCOUNTING 2
Q1.
Consumer sovereignty can be termed as the economic concept which reflects the controlling
power of the customers over the custody of the scarce resources. The client's spending power
implies they successfully vote in favour of products. The major criteria of the business
depend upon the customers and their preferences prevailing in the market. Consumer
sovereignty is one of the forms of the capitalism. There are different opinions about the
different authors and consumer sovereignty is myth therefore the business tends to take
support of the marketing techniques so that the customers are getting the products on the right
time.
Profit Maximization is said to be, for limited time run or the short run technique by which an
organization can characterize the info, cost, and yield levels that outcome in the most
astounding benefit. This idea pursues the neoclassical methodology as indicated by which
financial matters centre around characterizing the yields, salary circulation, and merchandise
through interest and supply and it has a wide implication in the theory of the consumer
sovereignty. The clients will pick the most affordable items that give the best quality as they
are typical individuals who comprehend their own needs and needs. They are said to be
sovereigns or lords of their own lives. It is the purchaser power which states that a market
works effectively and expertly since it gives a reward to the business that is efficient and can
offer items that are required by the clients according to their needs and the preferences.
Generally the term is used in both the descriptive and the normative format. Under this theory
the customers reflect their preferences and what type of goods and services are required by
them so that the manufacturers are able to produce the same. Moreover there is a resource
scarcity and hence not all the requirements are met. Hence the customers are liable to make a
choice out of the best available products at the current prices (Spash and Dobernig, 2017).
Maybe a couple of the needs of the clients will be higher and pressing in contrast with others.
In this manner, the clients will be prepared to pay additional costs for these required
administrations and products. This mirrors the producer of those administrations and
cooperative attitude gain higher benefit. On the off chance that the clients wish for explicit
administration or item and the item isn't required by the clients at pressing premise, at that
point he/she won't pay additional costs and will attempt to buy that item at lower costs.

MANAGEMENT ACCOUNTING 3
Makers of these administrations and items should manage less benefit in contrast with the
makers of items with higher interest. Since the maker has motivation revenue driven, they
will clearly make more items that are by and by in the intense interest among clients.
On the opposite side, the supply of the services may likewise have an impact on the esteem
set by the clients on that item. At the point when an item has low an incentive in the brain of
the clients, at that point that item is fabricated in high supply, at that point the clients will at
that point want to pay low costs for a similar item. On the other hand if the manufacture tends
to create the limitation on the products because of the low demand then the relate value in the
mind of the customers will increase and even at the higher costs the customers are ready to
pay. Therefore it can be stated that the cost plays a major role in determining the measure of
the relativeness along with the profit maximisation in the mind of the customers (Durden,
2018).
Q2.
Structure of market
A market is said to be the arrangement of vender and purchasers, generally denoted to
mediators, who through their interface, both potential and genuine, characterize the
arrangement of products and cost of the goods and the services. The key factors determining
the essence of the market are the agents, buyers, suppliers, negotiating parties, the degree of
competition as well as the product differentiation, also the strength and the purchasing power
of the buyers and the sellers.
The market structure is bifurcated into the following categories namely perfect competition,
Oligopoly, monopoly and monopolistic. A detailed analysis of each term is done below.
Perfect Competition – It is the most efficacious market where items are fabricated with the
assistance of effective techniques and high measure of elements. Intense competition is the
key factor of this type of the market. Other than this, this market offers homogeneous items to
the clients without any artificial restrictions and the knowledge of the market. There is a
complete absence of the rivalry among the individual firms. Monopoly – Monopoly is a
market circumstance in which there is just a single merchant of an item with obstructions to
section of others. The item has no nearby substitutes. The cross versatility of interest with
each other item is low. This implies no different firms produce a comparative item. Dealers in