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Managerial Accounting Assignment : IPH Limited

   

Added on  2021-05-31

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Running head: MANAGERIAL ACCOUNTINGManagerial AccountingName of the Student:Name of the university:Authors Note:
Managerial Accounting Assignment : IPH Limited_1
MANAGERIAL ACCOUNTING1Executive summary:The importance and the relevance of the ABC costing model has been discussed in thefollowing report. For the purpose of factoring in the importance that is presented by themethod to the management for the purpose of decision making, the various featurescharacteristics and the advantages of the system have been discussed. It is found that themethod is able to create immense value for the management of the company due to the factthat the cost incurred by the entity is divided into several categories and the categorisation ofthe costs incurred is done based on the activities that are being performed by the entity forconducting its business.
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MANAGERIAL ACCOUNTING2Table of ContentsIntroduction:...............................................................................................................................3ABC Model and its features:......................................................................................................3The mission vision and objectives of the entity that have been identified:...............................6The various corporate strategies that are being used by the entity for the achievement of theobjectives set up by the entity:...................................................................................................6The ways the adoption of the ABC model can assist the company in achieving its goals:.......7Recommendation regarding the implementation of this method of costing:.............................7Other management tools suited for the purpose of decision making by the management:........8Conclusion:................................................................................................................................9Reference..................................................................................................................................10
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MANAGERIAL ACCOUNTING3Introduction:In the present report, an effort has been made for explaining the advantages ofintegrating the use of the ABC model for managerial decision-making. In addition to that aneffort will be made for the purpose of understanding the basic principles that are being usedfor the purpose of carrying out the future operations fo the company and reshaping the waythe company is going to interact with the various stakeholders fo the company. The mission,vision and the objectives that the company has set up for itself is going to be analysed indetails. The company that is being selected for the purpose of preparation of this report is IPHLimited. ABC Model and its features:In the method of ABC model of costing the various activities that are beingundertaken by the company for carrying out the business of the entity is objectively analysed.After the analysis is, being concluded the various indirect costs that are being incurred by thecompany in its activities are being identified and are allocated to the various functional areasof operations of the entity. the method undertaken to identify the relationship that existsbetween the various activities that are being performed by the company, the indirect coststhat are being incurred by the company and the products that are being produced by thecompany (Weygandt et al. 2015). With the help of the understanding that has been developedby this method of costing the process of allocation of the indirect costs takes place in a muchless arbitrary manner than that is used by the traditional method of costing. It is often foundthat there are certain costs that are being incurred by the entity which are very difficult for thepurpose of allocation. The items that are very difficult to be allocated by making use of this
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