Management Accounting

Running Head: MANAGEMENT ACCOUNTING
0
Management Accounting
(Student Name)

MANAGEMENT ACCOUNTING 1
Table of Contents
Introduction......................................................................................................................................2
Income Statement of Barbeque and Balloons..................................................................................2
Cost Analysis of BBQ and Balloons...............................................................................................3
Labor cost per unit & Total Labor Cost.......................................................................................3
Activity Rate................................................................................................................................3
Activity-Based Costing Product Margin......................................................................................4
Activity Based Costing Product Margin of Barbecues & Balloons................................................4
Activity Based Costing Product Margin of Barbecues................................................................4
Activity Based Costing Product Margin of Balloons...................................................................4
Situational Analysis.........................................................................................................................5
Paul Statement..............................................................................................................................5
Ringo Views.................................................................................................................................5
Need for Avoiding before making Rules.....................................................................................5
Planning Budget...............................................................................................................................6
Comparison between Planning Budget and Actual Budget.........................................................6
Blaming for differences between Planning and Actual Results...................................................7
Calculation of Variance...................................................................................................................7
Material Variance, Quantity Variance and Total Variance of BBQ............................................7
Material Variance, Quantity Variance and Total Variance of Balloons......................................7

MANAGEMENT ACCOUNTING 2
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

MANAGEMENT ACCOUNTING 3
Introduction
Managing business play a vital role for the organization in an efficient manner. Most of the firms
enter in the market to earn maximum profit. The organization has adopted various strategies to
grow in the competitive market more efficiently (Trevino and Nelson, 2016). Moreover, the
financial analysis is one of the process by which the organizations or the businesses which
include big or small have a look at their progress (Schroeder, Clark and Cathey, 2019). There are
mainly three aspects of the business that are examined, it include stability, viability as well as
profitability. The financial performance as the part of the financial management is the core
indicator of the success or the failure of the organization. The financial performance analysis can
be considered as the heart of the financial decisions. It helps in highlighting the overall
performance of the organization in an effective and efficient manner (Dewachter et al., 2015).
One of the scenarios is provided in which four team member running the business of BBQ as
well as Balloon.
In the following part there will be detailed analysis of the cost as well as profit that occur from
both department as well as the efficiency of the team members that support the form to grow in
the market in an effective as well as efficient manner.
Income Statement of Barbeque and Balloons
BBQ & Balloons
Income Statement
Year Ended December 2019
Month 2019