Managerial Accounting

This assignment discusses the concept of costs in a service-based industry and the practical use of accounting information in decision making. It also explores the decision-making process and management accounting in Canon Inc. and Apple Inc.

Running head: MANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING
Name of the student:
Name of the university:
Author Note:

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Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
Part A:....................................................................................................................................3
Answer to question 1..............................................................................................................3
Answer to question 2..............................................................................................................3
Answer to question 3..............................................................................................................4
Answer to question 4..............................................................................................................5
Answer to question 5..............................................................................................................5
Part B......................................................................................................................................6
Answer to Question 1.............................................................................................................6
Answer to Question 2.............................................................................................................8
Answer to Question 3.............................................................................................................9
Conclusion................................................................................................................................12

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Introduction:
The assignment particularly deals with understanding the concept of the costs in a
service based industry. There are two case study which has been identified in a detailed
manner and further the practical use of the accounting information in case of the decision
making of the real life decision making of the company. The accomplishment of the goals
have been identified in a detailed manner which have been depicted in the conducted study.
The various types of cost used in the business of child care which have been evaluated and
the decision making in the system have been made duly (Shipman, Swanquist and Whited
2016).
In the second case study the decision of the upper level management of the company
along with the development of the project of Macintosh and the risk Jobs took has been
depicted in the conducted study. The strategic management also took some of the initiative
the company took at that time and certainly the managers meet the stages required in the
decision making process. The knowledge required to undertake the project is also highlighted
in the conducted study. There are also the positive and the negative impact on the financial
aspects of the firm must be taken care of management system in case of both the financial
and internal operation of the company.

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Discussion:
Part A:
Answer to question 1
The three different type of cost used in this case are the fixed cost, variable cost and
semi variable cost. The fixed cost are those cost which remains fixed further means that there
is no change in the goods and services produced or sold. The fixed cost are the independent
cost which needs to be bear by the company significantly. Variable cost is that cost which
varies as per the level of output produced by the company. Both the fixed and the variable
components make up the total cost of the firm. The variable cost of the firm is the
manufacturing process which deals with the raw materials, packaging and labour. The semi
variable cost is the mixture of both the fixed and variable cost which are produced at the
different levels of production (Shipman, Swanquist and Whited 2016).
Answer to question 2
The purchase of the appliances are necessary as it would definitely increase the
service of the laundry but in this case the delivery charge of the appliances will be high. But
the benefit on the other hand is that the company will be able to increase the length and the
time of providing services to the clients. The laundry services in this case will be provided
much faster and in a smooth manner. The purchase of the new washer and dryer will further
improve the overall service which is the additional cost incurred by the company. In this case
the monthly operating expenses of the company will increase for the purpose of availing the
services. The cost of the appliances along with the installation cost along with that will
automatically increase the overall cost which the company have to take awareness for the
purpose of making the decision. It is significant to bring the revenue out of the cost incurred

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by the firm and it will be effective to take decision for improving the services by availing the
appliances.
Answer to question 3
The total cost which is required in case of the operating expenses have been evaluated
in the following table. The initial cost and operating cost have been depicted and further
evaluated in the above computed table. From the above table it can be said that avail of the
appliances in the option 3 needs to be taken care of in terms of the options of the company.
Availing of the services of the appliances will automatically increase the quality and will
automatically reduce the time of the company in that case.

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Answer to question 4
The additional revenues of the employees have been depicted in the revenue per
month which is about $2400. The additional charges per month which is about $1558 is being
evaluated in the conducted study along with that the additional profit of the firm which is
about $841.20 (Schaltegger, S. and Burritt, R., 2017).

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Answer to question 5
The evaluation of the employees have been evaluated in the conducted table.
Part B
Answer to Question 1
The components of the management accounting consists of managerial accounting
and the financial accounting. The two companies which have been discussed in the case study
are the Canon Inc. and the Apple Inc. The strategic management group of the company takes
care of all the internal problems of the company (Kieso, Weygandt and Warfield 2016). The
management system of both the company deals with the management accounting along with
that the financial prospects of the firm. The managerial accounting of the firm produces the
reports regarding the internal management performances, budgets and also takes care of the
return on investment of the company (Tsai et al. 2015). Both the company also maintains the
balance score card which further evaluates the satisfaction of the customers. The activity
based costing based on the total management of the cost along with the production, quality
control, facility maintenance and the data processing of the company (Hoyle, Schaefer and
Doupnik 2015).

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Canon in case of the innovation of the new product development along with the
information creation where the company have been diversified into the office machinery
through the development of the electronic calculators and the copying machines (Smith
2017). Canon began the internal development of certain technology which is the technology
of the plain paper copier technology. The management in this case further focuses on the
improvements of the reliability of the cost. The management involves in the innovation of the
new products in the market where the design and production engineering plays significant
role in this case (Kaplan and Atkinson 2015).
The decision making of the company completely rely on the performance of the team
and strategy the company added to the elements of the company in various prospects. The
design decision is completely rests upon the engineers who further participated in the design
decision (Yun et al. 2016). The company will be able to produce the mac by lowering the
price of the products. The main decision in the company is taken by the upper level
management where in case of the CEO of apple who is the Steve Jobs took the major
decisions in that case. The design gave to the mac is a distinctive design which further
enabled the company in the growth of the company (Hoozée and Ngo 2018). The main role
of Jobs is to make the decisions based on the positive aspects as Jobs had the product
visionary. On the other hand the negative attitude of the company is based on the personal
biasness. For example, Steve Jobs decided to provide the extension of the extra slots in the
original mac which would rather allow the third party vendor of the product to deliver the
add-on equipment’s (Givoly, Hayn and Katz 2017). Jobs officially faced some of the
significant challenges which are particularly demanded in the project team regarding the
features of the personal computers.
Some of the examples regarding the decision making of the company have been
depicted in the above study where the upper level management of the company takes on some

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of the major decision by ascertaining the risks associated in the system. The challenges of the
project team completely depends on the information and the facts in case of both the
company. The features embedded in the system of the company must be taken of and
significant upgradation in the process must be conducted on an interval basis in order to
avoid the major casualty in that case (Dale and Plunkett 2017).
The upper level management of both the company takes the decision regarding the
implementation of the new products in the market. The problems are solved by the engineers
if there is technical related problem and on the other hand the company needs to manage
decision making problem which is further managed by the upper level management of the
company (Domingues, Sampaio and Arezes 2016). The third party vendors of the company
provides the also provides the add on capabilities which must be undertaken by the system of
the company. The innovation of the Macintosh was a major leap forward in case of the
person al computing and further created the relevant new information for the Apple. The
transformation of the Apple acts as the same way in case of the Canon as it became the major
component for the Apple Computers in case of the $ 4 billion company. The significant
element which must be undertaken by the management is that there must be an effective work
strength of the company (Coronel and Morris 2016).
Answer to Question 2
The process of information creation defines that the innovation which rises from the
provider of the raw material is considered as the theoretical projects. This further aims at
restructuring the concepts of the innovation process which is based on the activity based
human (Briggs, Lury and Teasley 2015). The innovation of the firm is to provide the task of
the environment where the information creation happens which translate throughout the firm.
In order to innovate a new product it is required to create environment which will further lead
to the information creation and also structure the institution for the purpose of transmitting

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the newly created information. The new information are effectively utilized by the
management of the company and further upgradation on the basis of that have been taken into
account by the companies (Bell and Leabman, Energous Corp 2017).
The case studies of both the Apple and Canon indicates that innovation is a part of the
information creation process which comes out of the social interaction among the employees
in the company (Kerzner 2017). Further the project development team is mainly dependent
on the personnel on various background which is operated in the intense sort of atmosphere.
In case of certain countries like the Japanese firms which are always highly competitive and a
constant flow in the innovation process always needs to ensure growth. This type of market
always seeks to improve the growth of the overall market in the economy. The highly
competitive Japanese’s market ensures constant flow of innovations which ensures growth of
the firm in their line of business (Ball et al. 2015).
The R & D in this case plays significant role in the experimenting and researching the
environment related problems of the company where the meanings are transmitted towards
the firm. The new ideas in this case are transmitted towards the firm where the company
understands the different aspects for the outcome in that case. The generation of the new
ideas often deals with the creation or the innovation process of the firm in that case. The
return on investment of the firm plays significant role where the company identifies the
situation and tries to solve it with the aspects of the company. The management style of the
apple from top to bottom was very self-organizing and among that the alternative is the
innovation of the mac. The institutional structure of the firm also provides the basic needs
which are required for the purposes of the decision making (Chohan 2017).
The project basically depends on the variety of the management system of the
company where the company understands the requirements and quite aware of the

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developments which needs to be made based on the same. At the start of the Mac the
company was basically limited upto the basic limit which is about three people. Steve Jobs as
a CEO of apple took some of the major decision which is that the company removed the Lisa
projects. Jobs on the other hand understood the significance of the Macintosh group and
replaced the original project team with the further the new project team (Arora and Raju
2017).
Answer to Question 3
The lessons which can be learned from the outcome of the case study of the cannon vs
the apple inc. effective team management will enable the company to enhance the growth of
the system. The administrative staffs, accountants and many more plays significant role in
that case where the management of the company takes on various strategies in the internal
management of the company (Chang 2016). The trained engineers in this case offers the
various solution to get rid of the hackers in terms of the hardware and the software case. The
mac able to optimize both the solution which is related to the hardware and the software
related problem. The intense of the interaction among the team members of the company
must be identified in various aspects. The significant innovations which is made by the team
mac played huge role behind the development of the legacy of the company. The company
always worked on the various projects which is essential for the team members of the firm.
The group mania in this case help in the development of the group which would further help
the company to expand the limits of the overall process. The apple further build a highly
automated factory which helped to produce the Mac inexpensively as it sets the low price
targets in that case. The Steve jobs always made the final decisions as the person poses the
leadership skills which is significant for the purpose of making innovative decisions. The
management team behind the mac project played a greater role in the development of the

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overall financial and the managerial development of the company (Cerchione and Esposito
2017).
The findings in case of innovation, it is needed to interpret the results of the
information value and meaning of the same. The semantic information is significant in the
conducted study where the information is more rounded and capable of transforming and
evolving. The company utilizes this sort of information and further takes decision based on
the above discussion in that case (Loughran and McDonald 2016). The innovation of the
products in this case deals with lot of information while creating the products in the system.
In case of innovation, creation of the products in this case plays significant role in the
development or rather the improvisation of the products at the same time. The product
development process of both the firms have the goodwill regarding the innovation of the new
products in that case. In the study there are merits and demerits of the canon and apple
methods which deals with the encouraging and organizing in the creation process of the
company (Benjaminson and Lubomirsky 2017).
A change in the concepts was necessary for the company in order to improvise the
different products in the various sectors of the company. The project team does the actual
brainstorming which is necessary regarding the upgradation or the implementation of the
projects regarding the business of the firm. The development of the products deals with the
capability of the firm where the firm must have an effective sustainability in the overall
improvement of the process in that case. All of the project success mainly depends on the
overall performance of the team which is applicable for both the company. The management
system of both the company is quite effective where there are certain functions which are
applicable for the inherent growth of the company in various prospects (Libby 2017). Lot of
corporate knowledge is required in this case in order to identify the significant internal
problems and to rectify the same which is related to such kind of internal improvement of the

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organization. There was lack of the transfer in the technology of the company along with the
coordination of the between the mac group and the apple division. The mac team member’s
deals with the development of the ideas and the features related to the project of the team.
The secretary often joined the company in order to create the solutions for the information in
that case. Apple in the project management of the company must be able to develop the
management, economic opportunities and the other problems which are associated with the
company. The management develop the effective background which are responsible for the
development of the intense operation in the communications of the company. The mac
project was one of the significant project which the company needs to take care of the
development of the mac system and the team who put all the effort behind such king of
internal improvement in the system (Kranacher and Riley 2019)
Conclusion
From the above evaluation of both the parts in the study it can be said that the
management of the costs in the business is significant and further decisions rest on the basis
of that. The development of the management system or rather the effective management
system will enhance the growth of the company in various prospects. The upgradation of the
system will moreover help the client along with the members of the company to stay updated.
On the other hand the company will be able to enhance the overall productivity of the same.
The story behind the development of the mac has been depicted in the conducted study and
also the same story of the cannon be shown as the same. The theory of the innovation of the
products plays significant role in the development of the new products in the industry which
is needed to be undertaken along with the necessary conditions and the risk organization
faces have been depicted in the above assignment.

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