Management Accounting

Running Head: MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

1MANAGEMENT ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Production Department..........................................................................................................2
Activities of Production Department.....................................................................................2
Set Up Cost Pools...................................................................................................................3
Value Added Activities..........................................................................................................5
Non-Value Added Activities..................................................................................................6
Conclusion..................................................................................................................................6
Reference....................................................................................................................................7

2MANAGEMENT ACCOUNTING
Introduction
The aim of this assignment is to do the analysis of functional area of the production.
Production is defined as the process of the combination of various inputs materials for
making something for the consumption. It is referred as the act of output creation, services or
good that has the value and contributes towards the utility of the individuals. Therefore, under
this assignment discussion will be based on the analysis of the activities as well as the set up
cost pools of the production department. In addition, discussion will also be based on the
identification of the value added as well as non-value added activities.
Discussion
Production Department
Production is considered to be the functional area, which is responsible for the turning
the inputs into the finished outputs by the series of the process of production. The manager of
the production is responsible for assuring and making sure that the sufficient raw material is
provided and they are processed further for making it into the finished goods in most
effective manner. Hence, the production department is that department that is directly
involved in the manufacturing of the goods and services such as departments of machining,
finishing as well as the department of assembling (Munyao et al. 2015).
Activities of Production Department
Production is that functional area that is responsible for converting inputs into the
finished outputs that goes through the series of the process of the production. The manager of
production department makes sure that there is smoothly carrying out of the work as well as it
must take steps for supervising the procedures in order to make it more enjoyable and
efficient (Khanna, 2015). The activities of the production includes following: