logo

Management Accounting - BSA Assignment

10 Pages3487 Words122 Views
   

Added on  2021-02-20

Management Accounting - BSA Assignment

   Added on 2021-02-20

ShareRelated Documents
Management Accounting
Management Accounting - BSA Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................3Importance of standard costing and variance analysis.................................................................3The use of standard costing and variance analysis to control the cost.........................................5Limitation of standard costing and variance analysis in controlling the cost..............................7SUMMARY.....................................................................................................................................9REFERENCES..............................................................................................................................10
Management Accounting - BSA Assignment_2
INTRODUCTIONStandard cost refers to an accounting system which was used by the manufacturingindustry in their organization to find the variances and differences in their production andmanufacturing activities (Kaplan, and Atkinson, 2015). They are mainly used to find thevariances between the actual cost of the goods they produced and the expected cost of theproduction. The cost related to the actual goods are known as the standard cost and it involvesthe various activities like master budget, profit plan and manufacturer budget etc. Normally business use various types of standard cost in their organization such as basicstandard, ideal, attainable and current standard cost to identify the variances.(Maas, Schaltegger,and Crutzen, 2016). These are used as the background for analysis the statistical data. BSAmanufacturing company is situated in Malaysia which was started on 1995. they manufacture thealloy aluminium wheels. They import the alloy from Germany, Italy, England etc. BSAmanufacturing use the ideal standard costing to find the best possible operating condition of thebusiness unit. They regulate the costing method to identify the changes in the operation conditionof the organization such as changes in technology, external environment, operating activity etc.Attainable costing are used for the pricing of the stock valuation, cost control, performanceevaluation and for budgeting of the product. Current standard cost is used for the short period oftime. They are used to analyse the cost and performance of the current period. Standard cost are prepared for the cost control and pricing decisions. To prepare thestandard cost for BSA manufacturing company they find per unit cost of the material, labour andoverhead of the organization. Then per unit of cost is divided to the expected amount for the perunit material cost, expected per hour labour cost and number of hour for the direct labour and theexpected total overhead cost for the direct overhead (Resnick, and et.al., 2016).Variance analysis is the quantitative method used for finding the difference between theactual production or activity and the expected production and activity. It is used to control all theactivity of the BSA manufacturing company.Variance analysis mainly done at the end of the activity and project of the organization tofind their actual position that how far or near are from the expected outcomes. It help thebusinesses to find the reason behind the variances in the project or production activity.Importance of standard costing and variance analysisImportance of standard costing
Management Accounting - BSA Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Intermediate Managerial Accounting
|5
|697
|216

Standard Costing as a Cost Controlling System
|8
|2182
|13

Completion statement | Practical Law
|1
|517
|18

Performance Management: Variance Calculation, Performance of Company, Just in Time Manufacturing System
|12
|2854
|200

Sales Budget and Cost Variances: Calculations and Analysis
|12
|3002
|497

Management Accounting: Solved Assignments and Essays - Desklib
|19
|3305
|132