Management Accounting for Cost and Control

Running head: MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Management Accounting for Cost and Control
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1MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Table of Contents
Question 1: Value chains of Wesfarmers Limited.....................................................................3
Question 2: Cost of manufacturing statement of Portland Precision Engineering Company
Limited.......................................................................................................................................4
Part 1:.....................................................................................................................................4
Part 2:.....................................................................................................................................6
Parts 3 and 4:..........................................................................................................................6
Question 3: Cost allocation of Bezos Limited...........................................................................7
Part 1:.....................................................................................................................................7
Part 2:.....................................................................................................................................7
Part 3:.....................................................................................................................................7
Part 4:.....................................................................................................................................7
Part 5:.....................................................................................................................................8
Part 6:.....................................................................................................................................8
Part 7:.....................................................................................................................................8
Question 4: Job costing of Collaroy Products Limited..............................................................9
Part 1:.....................................................................................................................................9
Part 2:...................................................................................................................................10
Part 3:...................................................................................................................................10
Question 5: Process costing of Pure Cotton Limited...............................................................10
Part 1:...................................................................................................................................11

2MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Part 2:...................................................................................................................................11
References:...............................................................................................................................13

3MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Question 1: Value chains of Wesfarmers Limited
In this section, Wesfarmers Limited is selected, which is the leader in the Australian
retail industry in recent times. Wesfarmers has always strived to provide quality products to
its customers (Wesfarmers.com.au, 2019). Despite such effort, certain issues are evident that
include transportation, partnership with suppliers and inbound/outbound integration. This has
mandated the need for Wesfarmers to improve its services for maintaining competitive
advantage in the market. Therefore, by using Porter’s value chain analysis, the supply chain
management of Wesfarmers could be analysed, which includes the following three functions:
Inbound logistics: This function involves relationships with the suppliers and the activities
to be obtained in stores and dissemination inputs. Since Wesfarmers is a retail company, it is
involved in distribution and control rather than producing the products. In terms of
distribution network, Wesfarmers makes contributions into logistics and procurement (Hertati
& Sumantri, 2016).
Procurement and logistics: Wesfarmers has adopted product lifecycle management system
for its method of procurement, as it assists in effective management of business to business
sales, suppliers and orders (Indiatsy et al., 2014). Moreover, for maintaining product quality,
the organisation conducts frequent audits before selling them to the customers. Furthermore,
the purchasing activities of the organisation have been nationalised so that it could save
additional costs. Finally, Wesfarmers has integrated the system of delivery network by
involving effective centres of distribution and system of transport. In this manner, the
organisation is in a better position to avoid strikes from the staffs along with enabling
effective control in its shipment activities.