Management Accounting for Cost and Control Assignment - Semester 1

This document presents a comprehensive solution to a management accounting assignment focused on cost and control. The assignment addresses several key areas, including process costing and its application to historical contexts like the construction of the Great Pyramid of Giza, emphasizing the importance of accurate cost allocation. It then delves into the calculation of equivalent units, cost per equivalent unit, and the valuation of closing stock and finished goods. Further, the solution provides detailed analysis of profit calculations under different scenarios and explores variance analysis, encompassing material price and usage variances, along with labor rate variances. The assignment concludes with the preparation of a budgeted statement of income and a budgeted retained earnings statement, alongside a discussion on the importance of budgetary control and the integration of political factors in budget planning. The provided solution offers a robust understanding of core management accounting principles and their practical application.

Running head: MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Management accounting for cost and control
Name of the student
Name of the university
Author note

1MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Table of Contents
Question 1..................................................................................................................................2
Requirement a........................................................................................................................2
Requirement b........................................................................................................................3
Question 2..................................................................................................................................4
Calculation of equivalent units...............................................................................................4
Cost per equivalent unit.........................................................................................................5
Cost of closing stock and finished goods...............................................................................5
Question 3..................................................................................................................................6
Requirement a........................................................................................................................6
Requirement b........................................................................................................................6
Question 4..................................................................................................................................7
Requirement a........................................................................................................................7
Requirement b........................................................................................................................9
Question 5..................................................................................................................................9
Requirement a........................................................................................................................9
Requirement b......................................................................................................................11
Reference..................................................................................................................................12

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Question 1
Requirement a

3MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Requirement b
There exists an enormous distinction in the development of the considerable Pyramid
of Giza amid its foundation 4500 years back. The foundation of the pyramid included the
utilization of ordinary methodologies that included different stages like the arranging,
execution, start, planning and shutting (Bouten & Hoozée, 2013). Amid the development of
the considerable pyramid, certain impediments were there that included cost, systems and the
assets. The usage of the new accounting procedure for cost management would prompt a
variety in the distinction inside the methods utilized with the focus of development alongside
the end of restrictions talked about before.
In this regard, which is in connection to the development of the famous pyramid, the
execution of the procedure costing would be perfect. It would be useful for the isolation of
cost that would help with taking care of the cost of development (Grunewald, Syrbe &
Bastian, 2014). The cost per unit of the items has been assessed to be the cost that is like the

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cost observed to be in handled costing. The prepared costing is reliant on the standard cost
that is useful when an extensive variety of items is produced. The development of the
pyramid would turn out to be extremely muddled without clarifying the genuine cost that is
related (Klychova et al., 2015). By the by, the presentation of the handled costing would be
useful in dispensing the genuine cost of the item.
Question 2
Calculation of equivalent units

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Cost per equivalent unit
Cost of closing stock and finished goods

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Question 3
Requirement a
Requirement b
Net profit generated under the normal circumstances will be calculated as follows –
As the company sells product A as $ 2 per kg at the point of split-off, the business
operational results will be as shown below –

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It is recognized from above estimation that the organization will endure noteworthy
loss under the new condition. In this manner, it might keep delivering the item A instead of
offering the item outside.
Question 4
Requirement a
Material price variance
Material usage variance

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Actual direct rate of labour per hour

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Requirement b
The procedure of difference investigation alludes to distinguishing and perceiving the
instance of change in the use and salary of the qualities that are planned from the estimations
of the present year. The elements that have prompted the landing of the changes in the
planned sum is perceived with the assistance of the difference examination. Besides, it helps
to successful planning operations in the end (McLaren, Appleyard & Mitchell, 2016). The
strength of the control system is investigated by embraced such appraisals that guides the
administration in thinking of thoughts that would help with limiting such divergences. It
helps in helping amid the distribution of the obligations, which makes the divisions involved
with the control strategies.

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The quantitative examination has been noteworthy in a few different areas like the
evaluation of the execution, human asset division and authoritative conduct. It helps in giving
out open correspondence with respect to the criticism desire and the execution of different
divisions. The finance related final product of the organization is related straightforwardly
with the execution of the human asset and the fluctuation appraisal helps in making the
connection between the adjustments in various divisions (Tucker & Schaltegger, 2016). The
execution of the fluctuation investigation helps in assessing the reactions of the workers in a
few perspectives that will help with accomplishing the input. The supervisors at a few levels
working in different offices use the fluctuation assessment that guides them in presenting the
proficient systems and types of gear of dealing with the expenses. They hope to acquire the
most extreme level of advantage from the fluctuation of material utilization.
The assessment of the fluctuation is respected a fundamental hardware in business
administration and is germane in the administration bookkeeping technique. It helps in
assessing the purpose behind deviation among the foreseen and the genuine esteems that
guides in improving the proficiency and in that way helps with keeping up the order over the
use of the undertaking by effective overseeing of the arranged versus and the genuine
consumption (Van der Stede, 2015). The different issues, openings and the examples
concerning the here and now and the long haul achievement for any wander of the
organization are found with the assistance of effective change assessment. It helps in deciding
the changes of cost and income.
Question 5
Requirement a
Budgeted statement of income

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Budgeted retained earnings statement
Workings –
Schedule for cost of goods sold