Management Accounting Costing and Budgeting - 5004 Words

I. Identify and classify different types of cost incurred in Foxwood Company with an appropriate cost classification There are many concepts of cost in an organization. Costs also are used in different business applications, such as financial accounting, cost accounting, budgeting, capital budgeting, and valuation. Consequently, there are different ways of categorizing costs according to their relationship to output as well as according to the context in which they are used. Following this summary of the different types of costs are some examples of how costs are used in different business applications. The two basic types of costs incurred by businesses are fixed and variable costs. Variable costs and fixed costs represent the total†¦show more content†¦* Indirect costs, in contrast, are similar to fixed costs. They are not directly related to the volume of output. Indirect costs in a manufacturing plant may include supervisors salaries, indirect labor, factory supplies used, taxes, utilities, depreciation on building and equipment, factory rent, tools expense. These indirect costs are sometimes referred to as manufacturing overhead. Direct costs | Indirect costs | SandpaperMaterials-handling costsLubricants and coolantsMiscellaneous indirect manufacturing laborDirect manufacturing laborDirect materials inventoryWork-in-process inventoryDirect materials purchased | Plant-leasing costsDepreciation-plant equipmentProperty taxes on plant equipmentFire insurance on plant equipmentMarketing promotionMarketing salariesDistribution costsCustomer-service costs | II. Explain the need for, and operation of, different costing methods on the information given the above scenario. Different industries follow different methods of costing because of the differences in the nature of their work. The various methods of costing are as follows: 1. Job costing: is concerned with the finding of the cost of each job or work order. This method is applied where work is undertaken on receiving customers’ special requirements and each order is of comparatively short duration. 2. Contract costing is applied for contract work like construction of dam building civil engineering contract etc. each contract orShow MoreRelatedEthical Issues Of Financial Accounting984 Words   |  4 Pagesthe reporting to whom. Financial accounting is meant for external reporting to all who are interested in the company’s activities. But in management accounting it is altogether an internal reporting aimed at helping managers in discharging their responsibilities. Financial accounting basically contains monetary information. But managerial accounting will contain both monetary and non-monetary issues that are helpful to the management. For example financial accounting will show only finance relatedRead MoreRyanair Plc : A British Airline And Will Provide A Brief Summary About The Company1636 Words   |  7 PagesIntroduction: This essay is about Easyjet Plc which is a British airline and will provide a brief summary about the company. It will make arguments on how Management Accounting information could aid the managers of the business, evaluating how Budgeting, Variance Analysis and Activity Based could be utilized within the company and will provide ways in which the managers could keep in mind to make recommendations and decisions. EasyJet Plc: EasyJet Plc founded in 1995 by a Greek Cypriot businessmanRead MoreAccounting (Managerial) 530 Portfolio Case Study978 Words   |  4 PagesAccounting (Managerial) 530 Portfolio Case Study Imagine you are applying to become a trainee in a management consulting company, Solutions Inc., which claims to deliver innovative solutions. They are looking for innovative employees who engage with their work. The selection process will be rigorous. You know you will be asked to submit reports based on questions regarding your knowledge of management accounting practice and strategic management accounting. To provide a context for the reportsRead MoreA Perspective Of Traditional Budgetary System1577 Words   |  7 Pagesthe traditional budgeting system has been found in both private and public sector organisation, it may be seen that it is crucial component of business since it may be more relevant to the current business environment. In addition, primary budgetary system already has overcome current business challenges and been facing an increase of competitive in business context. However, there are still some exist potential risks to cover current business challenges to set as a business accounting model to increaseRead MoreToyota s Performance Using Evaluation And Control Techniques1309 Words   |  6 Pages Toyota, one of the biggest car makers in the world, is famous for its effective manufacturing and costing systems which have served as role models for many companies on an international scale. One of its most popular manufacturing and costing systems is the Toyota Production System (TPS), launched in the 1980s. Toyota Production System (TPS) is based on a form of lean manufacturing and accounting, first developed and used by Ford Motor Company in the 1920s (Iuga and Kifor, 2013). In this assignmentRead MoreBUS 630 Final Paper1617 Words   |  7 PagesDecision Making with Managerial Accounting Managerial accounting is essential for decision making. Making the best choice depends on the managers goals, the anticipated results from each alternative, and the information available when the decision is made (Schneider, 2012). The different techniques associated with managerial accounting are very helpful in the decisions that need to be made. In order to truly understand decision making with managerial accounting one must first discern exactly whatRead MoreEssay on Truth and Consquence1335 Words   |  6 PagesCorporation Strategy-Driven Costing amp; Lean Management Kenco Engineering Corporation Strategy-Driven Costing amp; Lean Management Question 1) Generally Accepted Accounting Principles require that product costs include all manufacturing costs and only manufacturing costs. Activity-based costing usually does not include all manufacturing costs and will often include nonmanufacturing costs. Therefore, ABC is not currently acceptable under GAAP. Kenco’s costing system is preferable under GAAPRead MoreBenefits of Activity-Based Budgeting1467 Words   |  6 Pagesbasis to the advent of ABB. Nowadays, more and more companies start to use ABB in the budgeting process. Referring to ABB, companies do well in their budgeting period. This shows that ABB itself has many outstanding characters. In this article we will compare it with traditional budget method, so that it could give us a general survey about the characters and benefits ABB has. What is Activity-Based Budgeting (ABB) Definition of ABB Brimson says ABB is a managing process that based on the activityRead MoreEasyjet Is A British Airline Based At London Luton Airport1564 Words   |  7 Pages251) (1,182) Profit before tax 581 478 Tax charge (131) (80) Profit after tax 450 398 MANAGEMENT ACCOUNTING IN EASYJET PLC Both financial and management accounting are important tools in a business but both have different purposes. Financial accounting is used to present the financial health of an organization to its external stakeholder. However, management accounting is the process of preparing management reports and accounts that provide accurate and timely financial and statistical informationRead MoreCost Management Strategies For An Organization1590 Words   |  7 Pagesavailable, helps to sell other services for an organization. Budgeting tools: Managerial accounting people use budgeting tool and technique to manage money related information that assure us that a task is supported sufficiently and can be finished inside of the assigned budget. Utilizing models, formats and number crunchers, a budgeting tool gauges precisely, overview carefully and oversees risk properly. These tools assist with management convey the undertaking spending plan status with whom ordinarily