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Management Accounting - Sample Assignment

   

Added on  2020-12-30

11 Pages2267 Words333 Views
Management accounting

Table of ContentsINTRODUCTION...........................................................................................................................1Q.1) calculation of break even point sales..................................................................................1Q.2) Allocation of cost................................................................................................................2Q.3) Preparation of cost budget and statement of cash receipt from debtors.............................5Q.4) Job cost sheet......................................................................................................................6CONCLUSION ...............................................................................................................................6REFERENCES................................................................................................................................8

INTRODUCTIONManagement accounting is a branch of accounting which helps the management indecision making, cost controlling, profit margining, financial reporting and planning etc.through reports of management accounting, management enables to have better control overfinancial position and cost control over the business organisation. This report will includecalculation of break even analysis, allocation of joint cost through various methods, cash budgetand statement of debtors receipt, and preparation of job cost sheet as well for differentorganisation.Q.1) calculation of break even point sales1. a)calculation of number of helicopter required for break even per monthParticularCalculationsAmountSales per ride1000Variable cost AddFuel150AddWages of pilot500AddFood and drink100Total Total variable cost per ride (150+500+100)750Contribution10000-750250Fixed costAddRental of helicopter5000AddInsurance1100AddTransport and storage500AdddMaintenance800Total fixed cost (5000+1100+500+800)7400Number of helicopter rides required for break even sales7400/25029.6B) statement showing sales revenue required for break evenParticularcalculationsAmountNumber of helicopter rides required for break even sales29Sales per ride 1000Total sales revenue for break even(1000*29)29000C) number of helicopter required for gaining profit $10,000 per month1

ParticularcalculationsAmountBreak even sales revenue29000AddProfit10000Total sales required29000+1000039000Charges per ride1000Number of helicopter rides required39000/1000392.ParticularcalculationsAmountSales per ride1000Variable costAddFuel150AddWages of pilot500AddFood and drink100AddCommission50Total variable cost per ride(150+500+100+50)800Contribution per ride(1000-800)200Fixed costAddRental of helicopter5000AddInsurance1100AddTransport and storage500AddMaintenance800AddAdvertising expenses2000Total fixed cost (5000+1100+500+800+2000)9400Number of helicopter rides required for break even sales9400/20047Charges per ride1000Total sales revenue for break even1000*4747000AddProfit before tax12500lessTax(12500*20%)2500Sales revenue after tax44500AddProfit required after tax10000Total sales revenue required54500Charges per ride1000Number of helicopter rides required for earning profit(54500/1000)54.5Calculation of profit before taxParticularAmountprofit after tax required10000tax percentage20profit before tax(10000/80*100)125002

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