Running head: MANAGERIAL ACCOUNTINGManagerial AccountingName of the StudentName of the UniversityAuthor’s Note
1MANAGERIAL ACCOUNTINGExecutive SummaryThe objective of this report is to analyze different aspects of the implementation of ActivityBased Costing (ABC) model in JB Hi-Fi. The first part of the report involves in evaluating the ABCmodel along with its features. The next part of the report shows the role of ABC model forachieving the goals and objectives of JB Hi-Fi. The next part provides recommendations aboutthe implementation of ABC model. The last part shows the alternative approach ofmanagement accounting in JB Hi-Fi.
2MANAGERIAL ACCOUNTINGTable of ContentsIntroduction.....................................................................................................................................3a) Explanation of ABC Model and its Features................................................................................3b) Alignment of ABC Model with the Goals and Strategies of JB HI-FI............................................5i) Mission and Objectives of JB Hi-Fi............................................................................................5ii) Corporate Strategies of JB Hi-Fi...............................................................................................6iii) Role of ABC Model to Achieve the Strategies of JB Hi-Fi........................................................7c) Recommendation about the Implementation of ABC Model.....................................................9d) Alternative Management Accounting Tool for JB HI-FI...............................................................9Conclusion......................................................................................................................................10References.....................................................................................................................................12
3MANAGERIAL ACCOUNTINGIntroductionThe main aim of this report is to conduct an analysis and evaluation of the differentaspect of Activity Based Costing (ABC) Model that includes its features, characteristics,implementation and others from the business perspective. In order to meet the objective ofthis report, ABC model is linked with one of Australian Security Exchange (ASX) listed companiesthat is JB Hi-Fi Limited as it is largely helpful in improving the management accounting approachof the top management of the company. JB Hi-Fi is a major Australian retail organization ofconsumer goods. The company was established in the year of 1974 (jbhifi.com.au 2018). Thisreport has taken an honest attempt to align ABC model with the objectives and strategies of JBHi-Fi in order to bring improvements in the system of management accounting. The report alsoprovides recommendation for the effective implementation of ABC model within theorganization.a) Explanation of ABC Model and its FeaturesABC model is considered as a specific costing method that involves in the identificationof the performed activities as a part of the business operations and then, allocate the indirectcosts to the products (Öker and Özyapici, 2013). More specifically, ABC model puts emphasis onthe relation among activities, costs and products so that the indirect costs can be assigned toproducts with the help of this relation less arbitrarily as compared to the traditional costingmodel. However, it often becomes difficult for the managers to assign some specific costs withthe help of ABC model; indirect expenses such as the salaries of office staffs can be considered
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