Cost and Management Accounting

This homework assignment focuses on cost and management accounting principles. It includes several questions covering various topics such as conventional costing approaches in historical contexts (e.g., the Great Pyramid of Giza), modern management accounting techniques, variance analysis, and budgeting. The assignment demonstrates the application of these concepts through both written explanations and numerical problem-solving (indicated by 'Handwritten Solution' sections). The solutions provided analyze the differences between traditional and modern approaches to cost accounting, highlighting the importance of variance analysis in performance measurement and the role of budgeting in organizational planning. The assignment also includes a discussion of a comic strip illustrating a potential misunderstanding of a budget, emphasizing the importance of clear communication and understanding in financial planning.

RUNNING HEAD: COST AND MANAGEMENT ACCOUNTING
[Document title]

COST AND MANAGEMENT ACCOUNTING 1
Contents
QUESTION 1...........................................................................................................................................2
A........................................................................................................................................................2
B........................................................................................................................................................3
QUESTION 2...........................................................................................................................................4
QUESTION 3...........................................................................................................................................5
(a)......................................................................................................................................................5
(b)......................................................................................................................................................6
QUESTION 4...........................................................................................................................................8
A........................................................................................................................................................8
B......................................................................................................................................................11
QUESTION 5.........................................................................................................................................12
A......................................................................................................................................................12
B......................................................................................................................................................14
References...........................................................................................................................................16

COST AND MANAGEMENT ACCOUNTING 2
QUESTION 1
A
Handwritten solution

COST AND MANAGEMENT ACCOUNTING 3
Normal View
Formula View

COST AND MANAGEMENT ACCOUNTING 4

COST AND MANAGEMENT ACCOUNTING 5
B
The Great Pyramid of Giza is the oldest pyramids in Egypt. It is one of the seven
wonders of the world. This structure is considered to be the largest and tallest in the Earth.
Apart from the beauty and magnificence, the actually wonder is the construction of the
structure. For pyramid construction, conventional costing approach had been applied which
includes many stages such as execution of proper plan, proper documentation, execution,
progressions, designing and closures (Lavia López & Hiebl, 2014). There is a huge difference
between costing approach applied in construction of great pyramid and the modern
management techniques (Lanen, 2016). Earlier many deficiencies found in the construction
and thus the modern cost management accounting have been integrated which has advanced
stages of techniques. According to the modern approach, processed accounting would be
categorized as best technique for the construction of the great wonder (Stretton, 2014). In the
modern technique, proper project management plan has been executed which contains all the
systematic data for the project execution. Further includes the flexibility for any future
changes in the project plan. Moreover, project concerns, project budgets, monitoring and
regulating the project progressions etc. have been incorporated and most importantly all the
costs incurred for the construction is properly bifurcated and allocated to the correct
department (Otley & Emmanuel, 2013).
QUESTION 2
Handwritten Solution

COST AND MANAGEMENT ACCOUNTING 6

COST AND MANAGEMENT ACCOUNTING 7
Normal View

COST AND MANAGEMENT ACCOUNTING 8
Formula View

COST AND MANAGEMENT ACCOUNTING 9
QUESTION 3
(a)
Handwritten Solution

COST AND MANAGEMENT ACCOUNTING 10

COST AND MANAGEMENT ACCOUNTING 11