Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student
Name of the University
Author’s Note

1MANAGEMENT ACCOUNTING
Table of Contents
Answer to Question 1: Value Chains.........................................................................................3
1.1 Introduction......................................................................................................................3
1.2 Value Chain of Wesfarmers.............................................................................................3
1.2.1 Primary Activities.....................................................................................................3
1.2.2 Secondary Activities.................................................................................................4
1.3 Conclusion........................................................................................................................5
Answer to Question 2: Cost Manufacturing Statement..............................................................5
Requirement [1].....................................................................................................................5
Requirement [2].....................................................................................................................6
Requirement [3] and [4].........................................................................................................6
Answer to Question 3: Cost Allocation.....................................................................................7
Requirement [1].....................................................................................................................7
Requirement [2].....................................................................................................................7
Requirement [3].....................................................................................................................7
Requirement [4].....................................................................................................................7
Requirement [5].....................................................................................................................8
Requirement [6].....................................................................................................................8
Requirement [7].....................................................................................................................9
Answer to Question 4: Job Costing..........................................................................................11
Requirement [1]...................................................................................................................11

2MANAGEMENT ACCOUNTING
Requirement [2]...................................................................................................................11
Requirement [3]...................................................................................................................11
Answer to Question 5: Process Costing...................................................................................11
Requirement [1]...................................................................................................................11
Requirement [2]...................................................................................................................12
References................................................................................................................................13

3MANAGEMENT ACCOUNTING
Answer to Question 1: Value Chains
1.1 Introduction
Value chain is considered as a set of activities perfumed by a specific firm with the
aim to deliver valuable products and services to the customers (Mudambi & Puck, 2016). The
main aim of this report is the analysis of the value chain of Wesfarmers Limited
(Wesfarmers).
1.2 Value Chain of Wesfarmers
In the recent years, Wesfarmers is facing certain management accounting issues in
relation to the value chain. Some of the issues in Wesfarmers are lose in the vision as well as
overall strategy through dividing their operations into various activities, difficulties in
segregating the primary and supporting activities as a result of increased complexity, gaining
required accounting information due to the division in different processes and others. In order
to overcome these management accounting related difficulties, Wesfarmers has upgraded
their value chain (Koc & Bozdag, 2017). The following discussion shows the main
components of the value chain of Wesfarmers.
According to Porter’s Value Chain model, Wesfarmers has segregated their value
chain in two activities; they are Primary Activities and Secondary Activities.
1.2.1 Primary Activities
The primary value chain activities of Wesfarmers have direct involvement with the
production and selling products. The primary activities are:
Inbound Logistics – Wesfarmers maintain strong relationship with their suppliers to gain
their support for receiving, storing and distributing products (Mohajeri et al., 2014).