Management Accounting

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

1MANAGEMENT ACCOUNTING
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2.................................................................................................................2
Answer to A:..........................................................................................................................2
Answer to B:..........................................................................................................................4
Answer to C:..........................................................................................................................4
Answer to question 3:.................................................................................................................5
Answer to A:..........................................................................................................................5
Answer to B:..........................................................................................................................5
Answer to C:..........................................................................................................................5
Answer to D:..........................................................................................................................5
Answer to E:...........................................................................................................................6
Answer to question 4:.................................................................................................................6
Answer to A:..........................................................................................................................6
Answer to B:..........................................................................................................................7
Answer to C:..........................................................................................................................7
Answer to question 5:.................................................................................................................7
Answer to A:..........................................................................................................................7
Answer to B:..........................................................................................................................8
Answer to C:..........................................................................................................................8
Answer to question 6:.................................................................................................................8

2MANAGEMENT ACCOUNTING
Answer to A:..........................................................................................................................8
Answer to B:..........................................................................................................................9
References:...............................................................................................................................10

3MANAGEMENT ACCOUNTING
Answer to Question 1:
Ethics is of utmost importance every organization. For an effective running of the
business an individual is required to possess professional ethics. IMA is regarded as the
professional business community that are having overall understanding of professional ethics
and how the same should be implemented (Chell et al. 2016). IMA follows a simple principle
that comprises of accountability, objectivity, honesty and fairness.
The statement made by Sir Richard Branson puts the standard of competence under
jeopardy. As per the standard, the professional are required to possess adequate knowledge
and skill regarding occupation and must act with professional integrity relating to subject in
issue (Pearson 2017). They must be aware of duties relating to work and must support in the
information through appropriate recommendations, accuracy and clarity.
The quotes made by Richard Branson is a breach of professional competence and the
standard requires the person to have ethical understanding and knowledge relating to
unlawful practice (Cooper 2017). The quote made clearly breaches the standard of
Competence laid down under the IMA.
Answer to Question 2
Answer to A:
Quality costs refers to cost that is occurred by an organization for preventing and
maintaining the product quality (Kaplan and Atkinson 2015). On the basis of above stated
eight activities the costs are classified below;
Activity Year
1
Year
2
Year
3
Prevention cost - 0 $485 $325