Managerial Accounting

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note:

1MANAGERIAL ACCOUNTING
Table of Contents
Part 1:.........................................................................................................................................2
Introduction:...........................................................................................................................2
Background of the case:.........................................................................................................2
Analysis:.................................................................................................................................2
Conclusion and recommendation:..........................................................................................5
References and bibliography:.................................................................................................6

2MANAGERIAL ACCOUNTING
Part 1:
Introduction:
Managerial accounting is a branch of accounting where all the decision related issues
are addressed. Its scope is not that much wide as financial accounting but it can help in
various key managerial decision making. It analyses various costs and income related issues
in details and can give an optimal solution to the problem. Its effective use can widely be
noticed all over the world (Balakrishnan, Labro & Soderstrom 2014).
Background of the case:
The given case study is such a type of managerial accounting issue. In the given case
study the Hawthorn Leisure Works (HLW) is a fitness club who offers tennis courts and
various other physical fitness services. To join the club, members need to contribute an
annual membership and then for various services various they are charged separately. From
the given data it can be cited that, they classify the members in three classes and the
membership fees structure is also different for each of them. They charge separately for
tennis court facility and the rate is also different based on season and timing.
Analysis:
Based on their current membership plans, fees structures and utilisation of capacity in
peak and off seasons the total annual income can be computed as follows.