Management Accounting - Study Material and Solved Assignments

This page provides study material and solved assignments on Management Accounting. It includes a memorandum on improving the budgeting process and references for further reading. The content covers topics such as strategic management accounting, cost management, and environmental accounting.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student
Name of the University
Authors Note
Course ID

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Table of Contents
Answer to Part 1.........................................................................................................................2
Answer to A:..............................................................................................................................2
Answer to B:..............................................................................................................................2
Answer to D:..............................................................................................................................4
Answer to E:...............................................................................................................................4
Answer to F:...............................................................................................................................4
Answer to G:..............................................................................................................................4
Answer to H:..............................................................................................................................4
Answer to I:................................................................................................................................4
Answer to J:................................................................................................................................4
Answer to K:..............................................................................................................................5
Answer to L:...............................................................................................................................5
Answer to part 2:........................................................................................................................7
Reference List:...........................................................................................................................7

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Answer to Part 1
Answer to A:

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Answer to B:
Answer to C:

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Answer to D:
Answer to E:

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Answer to F:
Answer to G:
Answer to H:

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Answer to I:
Answer to J:

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Answer to K:
Answer to L:

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Answer to part 2:
Memorandum:
To: CEO of Exhibition Furniture
From: ABC Consultancy Firm
Date: 12th February 2018
Subject: Improvement in Budgeting Process
To improve the budgetary process a constant improvement can be introduced to
execute the budgetary procedure. The direct material consumption can be improved primarily
in two areas namely the value and use. References can be made in improving the usage of
direct materials by reducing the consumption by one square meter for the oak legs and oak
tops. Alternatively, the CEO of Exhibition Furniture can implement the flexible budget as
this would facilitate the business in closely aligning the cost with the operational functional
(Schaltegger and Burritt 2017). Under the retail business situation overhead costs can be
segregated to arrive at the fixed cost. Ideally these overhead costs and fixed costs can be
allocated to oak tops and oak legs and the same can be aligned to the revenue generating unit.
More significantly, the variance analysis is helpful in administering the differences
among the budgeted costs and original costs (Dashtbayaz et al. 2014). The application of
variance analysis will be helpful for both the oak tops and oak legs to apply the control on the
expenses incurred in manufacturing the product by relating the projected overhead costs
against the actual cost of overhead.
The application of budget variance would facilitate in conducting the qualitative
investigation among the real costs and planned behaviour (Otley 2016). On applying the

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budget variance regulation on the business costs can be applied. In addition to this,
recommendations can be made in setting up the quarterly budget as setting up the quarterly
budget would assist in financial projection for the business. The quarterly budget would help
the CEO in determining the trouble that looms and establish a proper agenda for ascertaining
the business performance.
On employing the quarterly budget the management would be better placed in
projecting and planning for the business during the financial year. The application of
quarterly budget would assist the management in analysing the original performance against
the budgeted performance (Eldenburg et al. 2016). The setting up of the quarterly budget may
enable the management in cutting down the cost of overheads in compliance with the product
needs to enhance the profitability for each unit of desk chair. The employment of quarterly
budget would be helpful in ascertaining the fixed-cost, semi-fixed cost and variable costs.
Conclusive the memorandum provides suitable recommendations to the CEO in
excluding the undesirable overhead cost per square meter and would alternatively help in
improving the profitability of the firm.
Thank You
From ABC Consultancy Firm.

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Reference List:
Dashtbayaz, M.L., Mohammadi, S. and Mohammadi, A., 2014. Strategic Management
Accounting. Research Journal of Finance and Accounting, 5(23), pp.17-21.
Eldenburg, L.G., Wolcott, S.K., Chen, L.H. and Cook, G., 2016. Cost management:
Measuring, monitoring, and motivating performance. Wiley Global Education.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.