Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the student:
Name of the university:
Author Note:

MANAGEMENT ACCOUNTING 1
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2.................................................................................................................5
Answer to Question 3.................................................................................................................5
Answer to Question 4.................................................................................................................7

MANAGEMENT ACCOUNTING 2
Answer to Question 1:
A) The value chain analysis is also referred to as the porters value chain is a management
concept by Michael Porter. Value creation particularly adds the competitive
advantage to the elements embedded in the value chain techniques (Kieso, Weygandt
and Warfield 2016).
The above diagrams consists the elements of the porters value chain models and it is
formulated based on the case study of the western cabinets. The value creating process has
been segregated under two forms which are the primary and the secondary factors as per the
activities of the western cabinets.
 Inbound Logistics: The western cabinets are manufactured and delivered to the
customers. The installation in this case in done by the Westerns’ 25 where the prices
of the delivery and the installation are embedded in the cabinet price. When the
customers receive the ultimate cabinet then they are satisfied if all the stages while
preparing the cabinet are met.

MANAGEMENT ACCOUNTING 3
 Operations: Western cabinets use the level of automations that are utilized by the
large manufacturers. In terms of producing the ultimate products, the cost and the
spaces used while producing the products plays significant role in this case. The cost
incurred for the woods and the paints are about 60%. The remaining 40% of the costs
is incurred in the labour and overheads which are the fixed costs.
 Outbound Logistics: After the ultimate products are finished production the n they
are sold out to the consumers in the market. The inventory management system of the
Western cabinets is effective which further makes the supply of the goods and the
services at an appropriate time.
 Marketing and sales: The marketing and the sales strategy of the western cabinets
are also effective due to the fact that sakes are made to the homeowners or through the
contractors those are renovating or building new homes. The revenue of the Western
Cabinets has increased up to the amount of $60 millions where it had more than 300
employees.
 Services: After sales service plays significant role in case of the follow up with the
customers and the warranty. The western cabinets uses the three FTE’s further
ensures that the job is completed when they reaches the customers satisfaction. It
understands the problems of the customers and tries to resolve it as early as possible
(Loughran and McDonald 2016).