Techniques of Management Accounting Doc

Added on - 22 Jul 2020

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Management Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1a. Assessing the extent to which new membership plan and fee structure will improve cashreceipts of HLW..........................................................................................................................1b. Estimating the effect of changing fee structure on sales revenue of HLW.............................2c. Identifying key factors that HLW needs to consider while taking decision in relation to theadoption or rejection of new membership plan and fee structure................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONManagement accounting may be served as a process that provides high level of assistancein making evaluation of business cost. Tools & techniques of management accounting are highlysignificant which in turn assists in evaluating business performance and aid in effective decisionmaking. Thus, MA tool gives valuable input to the manager and thereby helps in devisingappropriate financial plan. The present report is based on the case situation of Hawthorn LeisureWorks which offers tennis court and fitness facilities to the customers. Given case situationpresents that with the motive to improve cash flow now company is planning to revise feesstructure. In this, report will shed light on the factors that need to be considered while makingevaluation of proposed structure.MAIN BODYa. Assessing the extent to which new membership plan and fee structure will improve cashreceipts of HLWFrom evaluation, it has identified that new membership structure will make significantimprovement in cash inflows or receipts. Moreover, for attracting several customers or membersHLW is planning to conduct promotional campaign. On the basis of such campaign, club willoffer special reduction or discount to the members on their advance membership fee payment(Zimmerman and Yahya-Zadeh, 2011). Through such scheme, business entity of club wouldbecome able to generate more receipts. Moreover, customers are encouraged towards purchasewhen discounting offers introduced by the firm. Besides this, there will no additional hourly costalong with annual membership fees which in turn enables individuals and families to play tennisfreely. Further, as per new membership fees structure people who join club in the mid of yearwill pay proportional amount. Hence, all such aspects of new membership fees structure willinfluence decision making aspect of more people and thereby helps in attaining success.
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