Report on Management Accounting for Cost and Control (Course Name)

This report delves into the realm of cost accounting and its crucial role in management. It commences by exploring the application of cost accounting principles in historical contexts, such as the construction of the Giza Pyramid, and then transitions to modern methodologies. The report further examines key concepts, including equivalent units, cost per equivalent unit, and the valuation of closing stock and finished goods. It includes detailed analysis of variance, budget preparation, and financial statements like the income statement and retained earnings statement. Furthermore, the report highlights the importance of aligning budgets with government policies and addresses the concerns of ordinary people regarding budget impacts. The report also incorporates references to academic literature to support its arguments and findings. The report also includes the calculation of net profit and the impact of selling a product at a specific price and it also deals with the importance of variance analysis.

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

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Requirement b
4500 years back the Giza Pyramid was constructed using the conventional approach.
Owing to some issues it is required to use the modern approach of cost management
accounting for construction. If the modern concept is to be considered, process costing will
be appropriate for the Giza Pyramid construction (Fullerton, Kennedy & Widener, 2013).

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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 identified from above calculation that the company will suffer significant loss
under the new circumstance. Therefore, it shall continue producing the product A rather than
selling the product 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
Most important tools for the management of business is variance analysis. It assists
analysis of reason behind the reason of difference among the budgeted amount and actual
amount. Various segments where variance analysis is used are human resource sector and
organizational behaviour (Stretton, 2014).
Question 5
Requirement a
Budgeted statement of income

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

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Requirement b
While preparing the budget, the government priorities and policies shall be taken into
consideration. There shall be correlation between budgeted expenses and policies to enhance
the forecasting of revenue (Otley & Emmanuel, 2013).
The above image stating that the ordinary people are also concerned about the budget.