Managerial Accounting: Analysis of Breville Group Limited with ABC Model and Standard Costing

Managerial Accounting

TABLE OF CONTENTS
Introduction................................................................................................................................3
Task A........................................................................................................................................3
Task B........................................................................................................................................4
Task C........................................................................................................................................5
Task D........................................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................9

INTRODUCTION
Managerial accounting is the procedure of preparing managerial accounts as well as reports
that offer precise and accurate information based on finance and statistics needed by
managers to make long and short-term decisions. The current report is about the assessment
of Breville Group Limited Consumer Discretionary, with the analysis of the ABC model and
its characteristics and implementation. The study is concerned about the corporate mission,
objectives and strategies, together with the explanation of ABC system implementation by
the company. After considering the overall findings, the study will place recommendation in
order to help the corporate in implementing ABC model effectively. Furthermore, the study
will also dictate standard costing, which is another management tool apart from ABC model
facilitating the company in reaching its ultimate objectives and mission.
TASK A
Activity-based model allots manufacturing overhead costs to products in a highly logical
way; it initially assigns costs to those activities which are held from overhead. Further, the
costs are assigned to those activities or products which are highly demanding. It is a
methodology to gain a correct assigning overhead to those activities that actually make use of
it (Cardos and Pete, 2011). This model can be implemented for the aimed diminution of
overhead costs. It refers to the costing method that identified activities in a firm and allots
costs of all activities along with resources to each product and service as per their actual
consumption. Further, this methodology allots more of indirect costs, i.e., overhead into
direct costs. It is one of the most effective tools that help the company and managers to create
strategic decisions.
Characteristics of Activity Based Costing are described as follows:
 ABC model provides quality information for designing a cost system that can assist in
making better pricing decisions.
 It offers accurate difference among cost behaviour patterns related to volume, scale,
scope, events and time.
 ABC makes a proper identification of costs drivers. Costs drivers are key
determinants of cost-related activity. Along with this, it also describes the cost
behaviour pattern in an optimal way while tracking overhead costs of a product (Chea,