Building the Best Suitable Model for Dell Organization
Added on 2019-12-18
11 Pages3817 Words780 Views
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MANAGEMENTACCOUNTING1
Table of ContentsIntroduction..........................................................................................................................................3TASK 1.................................................................................................................................................3P2 Explain the different methods used for management accounting reporting................................4M1 Evaluate the benefits of various management accounting systems...........................................4D1 critically evaluate how management accounting systems and management accounting report used in an organization.....................................................................................................................5TASK 2.................................................................................................................................................6P3 Calculate costs per unit order under absorption and marginal costing........................................6TASK 3.................................................................................................................................................7P4 Explain advantages and disadvantages of different types of budgetary control.........................7A) Compute standard costs of PVC sheet and also determine difference between actual and standard costs....................................................................................................................................8B) Compute materials price and quantity variance...........................................................................8M3 Analyze the use of different planning tools for forecasting budgets..........................................8D3 Evaluate how planning tools helps in solving problems of Dell................................................9TASK 4.................................................................................................................................................9P5 Comparison of Dell with another organization...........................................................................9M4 Analyze how management of Dell will respond to financial problems in achieving sustainable success............................................................................................................................9Conclusion..........................................................................................................................................10References...........................................................................................................................................11INTRODUCTIONManager’s role has increases as increasing complexities in the external market created2
pressure on them to manage all the activities as without proper management an entity will not ableto earn its desired aims and the objectives. Dell has been selected for the given project report inorder to manage all their business activities in achieving desired aims and the objectives within agiven period. This project report is all about various management accounting systems and reportingchannel created in an entity. It also emphasises on two important technique such as marginal as wellas absorption costing to determine its overall significance in the business in handling variety ofchallenges imposed on an entity. Budgetary controls are used in enhancing all the skills and thecapabilities along with the desired aims and the objectives develop by an entity in a prescribed time.This project report is all about adopting tools and methods that helps in overcoming all the financialproblems incurred in the business as their desired aim is to accomplish all the goal and theobjectives in lesser time in order to remain ahead from all the market rivals currently giving toughcompetition to an entity such as HP who fall under same sector.TASK 1P1Explain management accounting and states various kinds of management accounting systemsManagement accounting is an important approach used by an entity owner in order toaccomplish all their aims and targets within a prescribed time. Attainment of all the goals and theobjectives in a particular time in order to beat all the competitors exists in the external market. Itcan be defined as method that automates all the business functioning of Dell in providing all theservices and innovative products to its various customers who are currently falls in the overallmarket share of Dell (Lal, 2009). They need to be retained in the business for the long time till anentity makes higher business profit by charging lesser prices in order to seek their confidence andloyalty that enhances overall skills and the capabilities of an entity.Management accounting systemsCost accounting systems- Cost is the primary concern for the management Dell which needs to beascertained in advance in order to provide ultimate advantage to an entity in accomplishing all thegoals and the objectives. Cost sheets are prepared by an entity in order to analyse the costs usingmarginal or absorption costing which helps in accomplishing desired aims and the objectives withina given time period.Inventory management systems- Inventories play an integral role in the business in increasingsales and the revenue of an enterprise as through this system all essential inventories will beprocured by the top management of Dell. Just in time used by Dell in which computers or laptopsare purchased from the manufacture just to meet the orders of the customers as storing computersrequired additional cost to be incurred by the business entity which decreases the overall income of3
an entity. The stock valuation is also important using FIFO and LIFO method to ensure higherincome of an entity by selling out all their stuff held in the business.P2 Explain the different methods used for management accounting reportingReporting is essential principle of the management of Dell as in order to communicateimportant information from one department to another in completing all the tasks and duties in agiven period of time. Important aspects of the business controlling is the preparation of reports inorder to record all the transactions in the business for the beneficial of the business entity as theirdesired aim is to achieve desired aims and targets within a given period. The basic objective of anentity owner is to prepare reports in regulating current business performance of the business aseliminating frauds is essential aim of an enterprise (SHAO, LIU and KONG, 2008). There arevarious management accounting reports prepared by an entity owner in conveying importantinformation from top management level to the lower level of management is given as below:Job costing- It is that approach in which job costing will be prepared by an entity for variousbatches or units of production included in an entity which is essential in order to determine theselling price o all these separate job costs just like a separate product manufactured by an entity.The preparation of job costing will be helpful for an entity in order to convey all importantinformation regarding a particular product which is essential in order to grab higher marketopportunities in the external business entity.Batch costing- Costing of all the products classified into various batches such as the computers ofDell are classified into various batches so all the costs are separately determined in selling price ofdifferent products or services of the business which needs to be enhanced with the passage of timeto benefit its variety of users.M1 Evaluate the benefits of various management accounting systemsBasic advantage of utilising different kinds of management accounting principles inanalysing the current resources used in the business as cost incurred in the business will bedetermined by the business enterprise (Choi, Kulick and Mayer, 2009). Marginal or absorptioncosting technique will be used in order to determine the costs incurred in the business which in turnhelps an entity in order to gain desired aims and the objectives within a prescribed time period.Operational efficiency of the management functions of Dell will get improved in order togain higher market advantage over its variety of competitors who held responsible foraccomplishing all desired aims and the objectives in eliminating all the threats located in theexternal market.Reduction of all the current expenditures in the business will help an entity owner in order to4
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