Management Accounting for Costs and Control: Homework Solution

This assignment solution covers various aspects of management accounting, including cost control, process costing, and variance analysis. It addresses questions related to the Great Pyramid of Giza's construction, calculation of equivalent units, and the creation of normal profit. The solution provides detailed calculations for material price and usage variances, and direct labor rate. The assignment also delves into budget creation, including budgeted income statements and retained earnings, and explores the importance of budgeting in organizational management. The solution references key concepts like process costing and variance analysis, along with discussions on how to improve the efficiency of planning operations and cost allocation. This homework assignment provides a comprehensive understanding of management accounting principles and their practical applications.

Running head: MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Management accounting for costs and control
Name of the Student
Name of the University
Author Note

1MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Table of Contents
Answer 1:.........................................................................................................................................2
Requirement A:............................................................................................................................2
Requirement B:............................................................................................................................3
Answer 2:.........................................................................................................................................4
Answer 3:.........................................................................................................................................6
Requirement a..................................................................................................................................6
Requirement b..............................................................................................................................6
Question 4........................................................................................................................................7
Requirement a..............................................................................................................................7
Requirement b............................................................................................................................10
Requirement B:..........................................................................................................................12
References......................................................................................................................................14

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Answer 1:
Requirement A:

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Requirement B:
An immense contrast exists in the Great Pyramid of Giza's development at the season of
its foundation, which was done just about 4500 years previously. The pyramid foundation, amid
that time additionally, utilized traditional strategies, including distinctive stages as that of
arranging, start, outlining, execution and that of shutting. There were a few constraints that were
confronted in the development of the pyramid, which incorporated the cost administrations,
assets and the instrument of execution of the whole procedure. New procedure of process
costing, if actualized, would prompt contrasts in the part of system that were utilized for
development purposes, including the confinement's end which has been examined beforehand .

4MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
In the above angle, in the development system, the procedure costing execution would be
really suitable as that will be valuable for cost isolation, which would in its hand help over
treatment of the development costs (Ward, 2012).
Answer 2:
Calculation of equivalent units
Per unit cost of equivalent units

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Cost of the finished goods and the closing stock

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Answer 3:
Requirement a
Requirement b
Creation of normal profit under normal circumstances are computed as below –
As selling price for product A is $ 2 per kg at point of split-off, the operational result will
be as below –

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It is evidential that under the new system the company will have to suffer huge loss and
therefore they are suggested to continue with product A delivery instead of providing outside.
Question 4
Requirement a
Material price variance

8MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Material usage variance
Actual direct labor rate per hour

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Requirement b
The variance analysis process alludes to the recognizable proof and the acknowledgment
of the difference cases in the costs and wage of qualities, which are planned from introduce year
esteems. The variables adding to the changes in the sum, which is planned, can be discovered
with the assistance of this investigation. The technique likewise helps in making the planning
operations successful with time (Warren, Reeve & Duchac, 2013). The capability of the
instrument of control can be gauged with the assistance of those appraisals, which causes the
administration to discover thoughts increasing in the limitation of divergences. The same
likewise aids the duties designation that thusly executes control strategies in the division.

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One of the pivotal business administration instruments which is correlated in the strategy
for administration bookkeeping is that of the difference assessment. With the assistance of this
examination, the reasons of deviations between the genuine and the expected esteems can be
comprehended and the effectiveness can likewise be expanded. This thus helps in controlling the
uses related with the undertaking with the assistance of vigorous supervision of arranged
opposite genuine costs. The technique additionally helps in breaking down the issues, examples
and openings in the long haul and in addition the transient achievements of the organization's
endeavours and aides in understanding the cost and income fluctuations likewise (McLaren,
Appleyard and Mitchell, 2016).
Answer 5:
Requirement a
Budgeted statement for income

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Budgeted statement for retained earnings
Working schedule for cost of goods sold
Requirement B:
An organization needs to build its financial plan to guarantee that it is embedded into the
administration's arrangements and administrative structures. Amid the spending development,
the cost productive variations are to be compulsorily picked. In the spending detailing process,
four vital extents are observed to be related. In the financial backing, there is incorporation of the

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asset task in a key structure and the costs in the monetary allowance are aggregately overseen.
For income estimations upgrades, the political request implies are to be connected suitably which
thusly can help in reinforcing the approach and costs associations (Harris & McCaffer, 2013).
Certain political perspectives should be considered at the season of the execution of the financial
plan.
The aspect of any budget is communal that can be seen from the above image where it is
stated that people have so many complaints after the declaration of the state budget. Therefore, it
can be said that many gaps are there in the budget from the political context. Further, there are
scope of inclusion of various things as per requirement.

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References
Harris, F., & McCaffer, R. (2013). Modern construction management. John Wiley & Sons.
McLaren, J., Appleyard, T., & Mitchell, F. (2016). The rise and fall of management accounting
systems: A case study investigation of EVA™. The British Accounting Review, 48(3),
341-358.
Ward, K. (2012). Strategic management accounting. Routledge.
Warren, C. S., Reeve, J. M., & Duchac, J. (2013). Financial & managerial accounting. Cengage
Learning.