Report on Management Accounting

Added on - 28 May 2020

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Running Head: Management AccountingManagement Accounting
Management Accounting2Executive Summary:This report is about the evaluation of two cases, first case is about activity based costing andthe second one is about Budgeting. In the first case evaluation of US bright product companywhich is manufacture of cakes and pastries is to be done. The evaluation is regarding theallocation of cost on the basis of cost drivers. The cost per unit is calculated by dividing theoverall cost or we can say total cost from the annual production quantity. Activity basedcosting elaborates the relationship between activities, cost and products.In this case the three parts need to be evaluated in first part per unit cost needs to becalculated based on the activity cost drivers. In the second part the billing amount needs to becalculated as well as the per unit cost need to be evaluated and lastly the additional costwhich is required to reach at the product cost of the US Bright need to be estimated.The second case is about Hawthorn Leisure works which is a physical fitness centre and italso offers tennis court facilities to its members. The budgeting is actually done to knowabout the companies coming growth prospects and helps in the further decision makingprocess. In this scenario HLW want to implement a new plan to change the revenue structureas under the old plan the revenue is collect from membership fee and the court fee and underthe new plan the revenue comprised of only membership fee.
Management Accounting3Table of ContentsTask A. (Activity Based Costing)..........................................................................................................4Introduction:......................................................................................................................................4Part (a) Cost per unit of activity driver..............................................................................................4Part (b) Bill of Activities...................................................................................................................5Part (c)...............................................................................................................................................6Conclusion:........................................................................................................................................6Task B Budgets to evaluate Business Decision.....................................................................................7Introduction:......................................................................................................................................7Part (a)...............................................................................................................................................8Part (b)...............................................................................................................................................8Part (c)...............................................................................................................................................9Conclusion:........................................................................................................................................9References:..........................................................................................................................................10
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