Managerial Accounting: ABC System and its Implementation in Integral Diagnostics Ltd

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note:
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1MANAGERIAL ACCOUNTING
Executive Summary:
The study has included the important discourse associated to ABC system and its
enforcement from different perspective of company. The satisfactory criterion for this
system have been implemented in ASX listed company named Integral Diagnostics Ltd. The
existence of highly valuable and enhanced management accounting approach this company
is ideal for the assessment purposes. The main findings show that it particular reference to
the selected company, there is a system will be having a significant role in tracing the
business activities which need special attention and evaluation. Based on the analysis, it will
be conducive in adopting budgetary control as an alternative to ABC which will ensure
overall efficiency in terms of cost and process optimisation for the company.

2MANAGERIAL ACCOUNTING
Table of Contents
Introduction:............................................................................................................................ 3
Answer to Part a:......................................................................................................................3
Answer to Part b:..................................................................................................................... 5
Requirement i:......................................................................................................................5
Requirement ii:.....................................................................................................................5
Requirement iii:....................................................................................................................6
Answer to Part c:......................................................................................................................8
Answer to Part d:..................................................................................................................... 9
Conclusion:............................................................................................................................. 10
References..............................................................................................................................12

3MANAGERIAL ACCOUNTING
Introduction:
Some of the important discourse in the report have comprised of relevant
information associated to ABC system and its enforcement from different perspective of
company. The satisfactory criterion for this system have been implemented in ASX listed
company named Integral Diagnostics Ltd. The existence of highly valuable and enhanced
management accounting approach this company is ideal for the assessment purposes. The
company is considered to be a healthcare service provider which is seen to specialise in
several areas of medical specialists, general practitioners and providing diagnostic imaging
services with the allied health professionals and patients across Australia. There have been
several efforts this company to align the ABC system with management’s goal and
strategies. The main form of recommendation has been seen to enforce suitable accounting
technique comprising of departmental needs (Weygandt, Kimmel and Kieso 2015).
Answer to Part a:
An important aspect of costing method under the basic concept is identified with
conducting the business operations in which the products are assigned in terms of indirect
costs. Additionally, the emphasis is placed on relating the activities for apportioning and
indirect costs with reduced subjectivity as compared to the conventional system. However,
managers find it intricate to apportion only few aspects of costs with the help of it is a
system. Due to this, the costing method has gained popularity among several industrial and
manufacturing sectors. Additionally, there is a possibility of using ABC system for product
costing, service pricing and target costing (Öker and Adıgüzel 2016).