Managerial Accounting Case Study Report: Holmes Institute

This report delves into managerial accounting, focusing on case studies from Canon Inc. and Apple Inc. It examines the components of management accounting, including controlling, planning, decision-making, and strategy, and evaluates their relevance in organizational innovation. The repor...Read More

Running head: MANAGERIAL ACCOUNTING
Managerial accounting
Name of the student
Name of the university
Student ID
Author note

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Table of Contents
Part A:........................................................................................................................................3
Answer to requirement 1:...........................................................................................................3
Answer to requirement 2:...........................................................................................................3
Answer to requirement 3:...........................................................................................................3
Answer to requirement 4:...........................................................................................................3
Answer to requirement 5:...........................................................................................................3
Part B:.........................................................................................................................................3
Answer to requirement 1:...........................................................................................................3
Answer to requirement 2:...........................................................................................................3
Answer to requirement 3:...........................................................................................................3
References and Bibliography list:..............................................................................................4

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Part A:
Answer to requirement 1:
Answer to requirement 2:
Answer to requirement 3:
Answer to requirement 4:
Answer to requirement 5:
Part B:
Answer to requirement 1:
Identification of the management accounting system components and evaluating their
relevance in making decision:
Management accounting takes into account three components which comprise of
controlling, planning, decision making and strategy taken by the organizations. Controlling
component is determined with the determination of the object by influencing the outcome
such as cost or profit inside or outside the acceptable range. Another essential component is
the planning that is incorporated in the decision making process of the organization. For

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creating some linkage between strategic endeavourers and day to day corporate activities, the
decision making also forms an important component of the management accounting. It was
found that the process of product development in both the organizations Canon Inc and Apple
Inc incorporated the process of innovation and it can be said that the innovation contributed a
long way to the development process.
The journal article titled” Towards a new theory of innovation management: A case
study comparing Canon Inc and Apple Computer Inc argues about the process of innovation
that can be understood as information process and later on it is concretized as the products
that would help in meeting the demand. The Canon Inc engaged in the process of product
development that is the internal development of the plain paper copier was done by
reconceptualizing the entire market. The objective of the reconceptualization of the market
was to produce the small copier that is compact and light weighted. Higher cost of regular
servicing required production of mini copier that must have simple maintenance or not cost at
all. The actualization of the mini copier was done by the formation of feasibility team and the
team consisted of people from different department such as marketing, product design
production and research and department. The issue was associated with the drum durability
that was solved and the members of team helped in solving the issue by getting engaged in
the heated arguments. Gathering of the camp sessions have been done and are regularly used
in the efforts of product development.
The Canon Inc conducted an assessment of the cost and quality group in the planning
stage by setting the standards of quality in terms of fusing, developing, charging and
cleaning. The innovation process involved in the cartridge technological development is the
continuous process and the task force system helped in reducing the time period between
planning development and product completion. Essentially free cost of maintaining the mini
copier and reconceptualization of the entire paper copier helped in facilitating the

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miniaturization, reduction of weight and assembly of automation. The cooperation between
the product development and manufacturing technology was cooperated with the help of
development of mini copier.
The management accounting concepts was incorporated in the development of
Macintosh computers at Apple Inc. Revolutionalization of the computer was done because
for bringing down the higher price of computers. The team formed to perform the task was
self organizing due to simultaneous crystallization of the solution and problems. The case
study mentioned that the innovation in the development of Macintosh computers was not
reverberated throughout and this occurred because of lack of coordination and conflict
between the members of different teams. However, the constant interaction between the
members of different teams resulted in exchanging of ideas and generating new features.
Another component of managerial accounting that was incorporated in the
development o product was the control factor by setting a lower target price in a highly
automated factory that assisted in producing Mac inexpensively. The process of product
development involved several complications that made the development process a bit critical.
In addition to this, the CEO of company acted as arbiter of decision as it contributed in
enhancing the process of decision making. The development of Macintosh was accompanies
by the development of innovation process and the computers having the dimension of
computer book and it helped in giving it a distinct deign and compact look. Therefore, the
development process of Macintosh incorporated the components of managerial accounting
such as controlling and decision making.

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Answer to requirement 2:
Assessing the contribution of management accounting to the process of innovation:
The control system and management accounting contributes to the process of
innovation that helps organization in the development of new markets that is enhanced by the
differentiation factor. The adoption of the innovation in the managerial accounting is
influenced by the factors such as technical, organizational and economic factors. Innovations
in the organization are a way forward because of the development of the techniques of
management accounting as it helps in the contribution of the products uniqueness,
competitive pressure, technological competences and domestic market. The methods of
traditional management accounting that came with the command culture and control was
eliminated by the freedom and flexibility required for the innovation system.
The article discusses about the contribution of the management accounting in the
development process of Macintosh computers and mini copier at Apple and Canon Inc.
Innovation of the product can be considered as the restricted subset of the process of creation.
One of the aspects of creating information is the development of the new innovation process
within the quality of control. It is required by the firms to create new products, new
strategies, and new ways of selling, distribution and selling to remain competitive. In order to
constantly create new meanings, there is a need of constant reconceptualization,
reexamination and reorganization. For setting off further innovation, there should be the
diffusion of new information as the organization would be able to reap the benefits with the
help of newly created information. It is observed that innovations in an organization are
triggered by the new innovations which help in securing great economic benefits. The case

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study depicts that the innovation process of developing mini copier was continuous and it
spread thought out the company. The development of mini copier resulted in generating
competitive strength for the Canon.
It is indicated by the case study that the process of creating information at both Canon
Inc and Apple Inc that the innovation in the process of creating information is due to the
social interaction between the personnel from different departments. The project development
teams of both the organization composed of personnel who operated in the atmosphere of
daily communication and from several backgrounds.
The development of actual project was different in the two cases. It is so because at
Canon Inc, there was development of established products by redesigning it for entire market
and the products was redesigned for the entire market. This development was based on the
activity of human that is dependent on the deduction or induction. Development team was a
part of homogenous structure having definite liability and a clear hierarchy with the top
management supporting the product development.
The development of the Macintosh computer was in destructive relation to the rest of
company and was in isolation. The information generated in the design process of Mac was
not transited to the other parts of company. In addition to this, the constant interaction
between the team members resulted in the evolvement of new features and ideas in the
Macintosh computer development. The vision was translated into the new product by
funneling of the resources into the new product along with the conceptualization of the
project’s difficult part using the proper analogies and metaphor.

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Answer to requirement 3:
Identifying the findings of research and its usefulness to the management accountants in
the Australian companies:
References and Bibliography list: