Cost Analysis, Performance Indicators, and Value Enhancement Report

This management accounting report delves into cost control, performance indicators, and strategies for value improvement, focusing on Triumph Motorcycles Ltd. It discusses the preparation and analysis of cost reports, highlighting the importance of understanding total production costs and work-in-progress valuations. The report also examines performance indicators, including quantitative, leading, and input indicators, which are crucial for evaluating a company's efficiency in achieving its goals. Furthermore, it provides suggestions for cost reduction and value enhancement, emphasizing the management of human resources and addressing unprofitable departments. The analysis is supported by references to relevant academic sources, offering a comprehensive overview of management accounting principles and their practical application. Desklib provides access to this and other solved assignments.

Manaagement Accounting

Introduction
Accounting is the process by which company can estimate
its budget estimation and cost control for a particular year .

Preparation of cost report and analysis
Cost report : It is said to be different types of cost report. It
is the overall cost incurred during production process. The
price paid or required for acquiring, producing and
maintaining the products while production process

continued
Procedure of Cost report
1st : Find the total cost of the units that are going to be
transferred out.
2nd : Calculated the each unit cost of WIP (work in progress)
for direct material and conversion cost. By using direct cost
of material, Triumph Motorcycles Ltd had 500 equivalent
units of WIP at the closing year. These units cost 2.25$ so the
total cost of WIP at the end is 1125$.
3rd : Add total cost of per units transferral out to the cost of
WIP.

performance indicators
Performance indicators : it refers to those measurable
value which demonstrates that how efficiently company is
achieving its goals and objectives. Most of the organisation
uses KPI 's at different stages to evaluate their success point
at every set target. These are necessary to set by the
company and work according to the policies set standard by
industry.

continued
There are various performance indicators :
Quantitative indicators : these are associated to the
particular number presented during the production
process.
Leading indicators : These are based on the manufacturing
outcome that a company is generating form differentiate
areas of their department.
Input indicators : under this it measure the total amount of
resources that are used during the generation of valuable
outcome for the company.

suggestion to reduce cost and increase
value or quality
Triumph Motorcycles Ltd is very reliable and leading
company in the global economy. If as management
accountant of this company , I would suggest some of the
ways to improvement. But the situation of the company is
up to satisfaction level. However, Triumph motors can
increase their expenditure by managing the human
resources. Company has some unprofitable department.

REFERENCES
Arroyo, P., 2012. Management accounting change and
sustainability: an institutional approach.Journal of
Accounting & Organizational Change. 8(3). pp.286-309.
Bodie, Z., 2013.Investments. McGraw-Hill.
Burritt, R.L and et. al., 2011.Environmental management
accounting and supply chain management(Vol. 27). Springer
Science & Business Media.
Burritt, R.L and Schaltegger, S., 2010. Sustainability accounting
and reporting: fad or trend?. Accounting, Auditing &
Accountability Journal. 23(7). pp.829-846.