Management Accounting Assignment - (Solved)

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Added on 2020-05-28

Management Accounting Assignment - (Solved)

Added on 2020-05-28

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Running Head: Management AccountingManagement Accounting

Management Accounting Assignment - (Solved)_1

Management Accounting2Executive Summary:This report is about the evaluation of two cases, first case is about activity based costing and the second one is about Budgeting. In the first case evaluation of US bright product company which is manufacture of cakes and pastries is to be done. The evaluation is regarding the allocation of cost on the basis of cost drivers. The cost per unit is calculated by dividing the overall cost or we can say total cost from the annual production quantity. Activity based costing 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 be calculated 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 cost which 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 it also offers tennis court facilities to its members. The budgeting is actually done to know about the companies coming growth prospects and helps in the further decision making process. In this scenario HLW want to implement a new plan to change the revenue structure as under the old plan the revenue is collect from membership fee and the court fee and under the new plan the revenue comprised of only membership fee.

Management Accounting Assignment - (Solved)_2

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

Management Accounting Assignment - (Solved)_3

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