Interiors by Louise: Management Accounting Analysis and Solutions

This assignment analyzes the financial data of Interiors by Louise, focusing on management accounting principles. The analysis includes activity-based costing, customer profitability, and distribution channel profitability reports. The solution calculates direct and overhead costs for different clients and business segments, assessing their profitability. Scenario 1 evaluates the costs and revenues of architectural and window treatment businesses, identifying loss-making clients and channels. Scenario 2 examines contribution margins and optimal resource allocation for Super-chip and Okay-chip production, determining transfer prices and making recommendations for production decisions. The assignment provides detailed calculations, profitability analyses, and strategic recommendations to improve financial performance, including suggestions for attracting more clients and increasing revenue. A bibliography of relevant accounting resources is also included.