Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management accounting
Name of the student
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1MANAGEMENT ACCOUNTING
Table of Contents
Answer 1 – Manufacturing cost flows.......................................................................................2
Answer 2 - Cost Behaviour........................................................................................................3
Answer 3 - Comprehensive Manufacturing Budget...................................................................4
Answer 4 – Strategic and International issues in Management Accounting..............................8
Answer 5 - Strategic management accounting.........................................................................10
Reference..................................................................................................................................12

2MANAGEMENT ACCOUNTING
Answer 1 – Manufacturing cost flows

3MANAGEMENT ACCOUNTING
Answer 2 - Cost Behaviour
Production capacity
Production volume is the units of production that can be produced by the
manufacturing plant by the entity with the available resources for the given time period.
Theoretical capacity is the production level of the manufacturer that can be produced with
optimum efficiency as well as continuous performance of all the resources including the
equipment used for production and the operations required for production (Mishan, 2015). On
the contrary, practical capacity is the production level of the manufacturer based on the
labour hours, machine hours or in terms of pounds or quantity. Generally the practical
capacity level of production is less than the theoretical capacity level of production. Though
theoretical capacity is considered as the perfect picture with optimum utilization of all the
available resources, in reality it is not obtainable. However, the practical capacity is realistic
and is therefore achievable (Mishan, 2015).