Managerial Accounting Assignment - Woolworths Limited
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Added on 2020-05-16
Managerial Accounting Assignment - Woolworths Limited
Added on 2020-05-16
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Running head: MANAGERIAL ACCOUNTINGManagerial AccountingName of the Student:Name of the University:Author’s Note:Course ID:
1MANAGERIAL ACCOUNTINGExecutive Summary:This report is prepared from the viewpoint of a consultant for dissecting the efficacy ofTime-Driven Activity-Based Costing System (TDABC) in organisations. The consultant isemployed recently in a consultancy firm, which has a main client, Wesfarmers Limited. It is oneof the leading retail companies in Australia competing with Woolworths Limited in the market.It has been evaluated that the TDABC system would help Wesfarmers Limited to obtaincompetitive advantage by distributing indirect or support cost in a way that the resultinginformation of cost represents an effective insight of the consumption of resources and needs ofresources on the part of the customers and services of the firm. The management of Wesfarmerscould obtain a significant overview of the overhead expenses by obtaining the details regardingactivities related online services and traditional services. Thus, the organisation would be able tomake decisions that would raise the customer base, increase services and minimise costs with thehelp of the TDABC system.
2MANAGERIAL ACCOUNTINGTable of ContentsIntroduction:....................................................................................................................................31. Description of Wesfarmers:.........................................................................................................32. Concept and features of TDABC:................................................................................................33. Comparison among traditional costing, ABC and TDABC systems:..........................................54. Effectiveness of TDABC to Wesfarmers:...................................................................................8Conclusion:......................................................................................................................................9References:....................................................................................................................................11
3MANAGERIAL ACCOUNTINGIntroduction: This report is prepared from the viewpoint of a consultant for dissecting the efficacy ofTime-Driven Activity-Based Costing System (TDABC) in organisations. The consultant isemployed recently in a consultancy firm, which has a main client, Wesfarmers Limited. It is oneof the leading retail companies in Australia competing with Woolworths Limited in the market.The initial part of the report lays stress on describing the overall operations of the selected firm,Wesfarmers Limited. The second part is focusing on explaining the basic concept andcharacteristics of TDABC system. The third part deals with the assessment of comparison amongtraditional costing, ABC and TDABC systems. Finally, the report throws light on dissecting theviability of TDABC system at the time of enforcement in the context of Wesfarmers Limited. 1. Description of Wesfarmers:Wesfarmers Limited is an Australian firm in Western Australia having interestsextensively in New Zealand and Australian chemicals, retail, coal mining, fertilisers, safety andindustrial products. It is the biggest Australian retail firm in terms of revenue in 2016, as it hasamounted to $65.98 million and it has overtaken BHP Billiton and Woolworths Limited(Wesfarmers.com.au 2018). The main business operations of the organisation include liquor,supermarkets, convenience stores, hotels, home improvement, departmental stores, officesupplies and industrial divisions having businesses in chemicals, fertilisers and coal. It has one ofthe largest shareholder bases of around 530,000. 2. Concept and features of TDABC:Certain complexities are involved in traditional costing system and for minimising thesecomplexities; there is enforcement of TDABC model. This is because the system is less costly,
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