Management Accounting System in Apple

Managerial
Accounting

Table of Contents
INTRODUCTION...............................................................................................................1
PART 1...............................................................................................................................1
1. Types of cost which is discussed in given case....................................................1
2. Best alternative to purchase appliance ...............................................................3
3. The cost that couple launder clothes ...................................................................4
4. Should frank hire additional employee.................................................................5
5. The number of employee which need to hire ......................................................6
PART B .............................................................................................................................7
1. Management accounting system in Apple computer and Canon ........................7
2. Management accounting contribute to the innovation process..........................10
3. Specific lessons from article research ...............................................................11
CONCLUSION.................................................................................................................12
REFERENCE...................................................................................................................13

INTRODUCTION
Managerial accounting refers to a study of accounts which is prepared by the
manager of the organisation in order to make better economic business decisions. It is a
profession which contains partnership in management decision. Moreover,
management accounting is essential tool for firm's manager as it helps to prepare
accounts, collect financial information and built financial statement that is used to make
effective business. Every enterprise whether small, medium or large size uses
management accounting to keep proper records of financial transaction which gives true
and fair views in company (Alkordi, Al-Nimer and Dabaghia, 2017). The present report
will discuss about Nanna's house that is a child care business run by Douglas and
Pamela. They provide child care facility business at their home and charging some fixed
amounts for take caring. The main aim of this report is to understand cost and
accounting concept that help to make decision in order to achieve organisation's goals.
This report will discuss about cost of organisation, relevancy of information and launder
cost which affects organisation business.
PART 1
1. Types of cost which is discussed in given case
Accounting is the study of financial information which is recoded, collected and
presented by manager of the business enterprises. The main object is to understand the
financial data and use it optimally which helps to increase the profitability. Cost means
amount of money which is spent on manufacturing and creating a good or services.
Cost is the monetary value containing expenditure for rendering services, products, raw
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material and employees who are working in business industry (Christensen, Nikolaev
and Wittenberg‐Moerman, 2016).
In this case, Douglas and Pamela are the managers of organisation who has
determined different types of cost such as-
Fixed cost: The cost which occurs on regular basis and remain constant is
known as fixed cost. It contains rent, salary and administrative cost within business
organisation. As given in case scenario, annual insurance is fixed cost $3840, the
overall cost of washer and dryer is $420 and $380 which will not change. Moreover, the
total cost of delivery the appliance is $35 that is fixed and the cost of installation is also
fixed $43.72 which will not vary regardless the activity of couple. The cost of mileage at
a rate of $0.56 per mile cannot vary with the total mile driven because it is given in case
which is fixed for 6 miles (two way).
Variable cost: The variable expenses covers cost of raw material, labour,
packaging, finished goods that cab be change proportionately. In the discussed case
the variable cost of meal and snacks expenses that can be change after increasing and
decreasing the number of children. The meal charges in Nanna's house are $ 800 per
month for each child. It provides full day caring services if any person wants extra time
to take care of child than they have to pay more fees as decided $ 15 per hour.
Additionally, Douglas and Pamela provide meals and snacks services two time that help
to increase customer loyalty. The meal and snacks cost is $ 3.20 per child that can vary
with the change in number of children. The utility cost $50 that can be vary according to
the member in daycare. The cost of laundry which they can launder themselves at a
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