Management Accounting for Cost Control, Budgeting & Scorecard

This report provides a detailed analysis of various management accounting techniques for cost and control. It covers process costing, budgeting, variance analysis, relevant costs for decision-making, and the balanced scorecard. The report includes detailed calculations and explanations for each topic, such as calculating equivalent units in process costing, preparing operating budgets, analyzing variances between actual and budgeted costs, and identifying relevant costs for specific decisions. The balanced scorecard section explains its role in strategic management and how it relates to business planning, strategy implementation, performance targets, motivation, prediction, and control. This document is available on Desklib, a platform offering a wide range of study resources for students.

Running head: MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Management Accounting for Cost and Control
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Name of the University:
Author’s Note:
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1MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Table of Contents
Question 1: Process Costing............................................................................................................3
Requirement a:.............................................................................................................................3
Requirement b:.............................................................................................................................4
Requirement c:.............................................................................................................................4
Requirement d:.............................................................................................................................5
Requirement e:.............................................................................................................................5
Question 2: Budget..........................................................................................................................6
Requirement a:.............................................................................................................................6
Requirement b:.............................................................................................................................7
Requirement c:.............................................................................................................................7
Requirement d:.............................................................................................................................8
Question 3: Variance analysis.........................................................................................................9
Requirement a:.............................................................................................................................9
Requirement b:...........................................................................................................................10
Part i:......................................................................................................................................10
Part ii:.....................................................................................................................................10
Part iii:...................................................................................................................................11
Part iv:....................................................................................................................................11

2MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Part v:.....................................................................................................................................12
Part vi:....................................................................................................................................12
Part vii:...................................................................................................................................13
Part viii:.................................................................................................................................14
Question 4: Relevant costs and decision making..........................................................................14
Requirement a:...........................................................................................................................14
Requirement b:...........................................................................................................................15
Requirement c:...........................................................................................................................15
Requirement d:...........................................................................................................................16
Question 5: Balanced scorecard.....................................................................................................16
References:....................................................................................................................................21

3MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Question 1: Process Costing
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Requirement a:
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Requirement b:
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Requirement c:
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Requirement d:
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Requirement e:
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Question 2: Budget
Requirement a:
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Requirement b:
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Requirement c:
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8MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Formula view:
Requirement d:
An organisation could obtain certain benefits by preparing operating budget, which are
demonstrated briefly as follows:
 With the help of operating budget, the organisation could set direction of a variety of
functions. Based on the budget, targets have been set for different departments, which
assist in gauging their overall performance (Popesko & Socova, 2016).
 The organisation could conduct performance evaluation with the help of operating
budget. At the end of the reporting year, the actual outcomes have been compared with
the budgeted results and the root cause is detected, when performance fails to meet
budget expectations having fixed responsibilities.

9MANAGEMENT ACCOUNTING FOR COST AND CONTROL
 The cash flows could be managed effectively through operating budget. When the budget
is prepared, an idea could be developed about the collections and payments of an
organisation needed for a specific month and accordingly, the funds could be arranged
(Olesen, 2015).
 The various functions could be executed according to the plan by using operating budget.
If the plans are not occurring as per the budgeted ones, it would assist the respective
functions in undertaking necessary steps.
Question 3: Variance analysis
Requirement a:
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10MANAGEMENT ACCOUNTING FOR COST AND CONTROL
Requirement b:
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Part ii:
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Part iii:
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Part iv:
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