Management accounting

Cost-volume-profit (CVP) analysis is a strategic decision made by the management of the company. The cost-volume-profit analysis is very helpful for the managers to make product decisions by estimating the expected profitability of the choices because different choices will affect the selling price, variable costs per unit, fixed costs, units sold and operating income. According to Alvis (2016), CVP analysis expands the use of information provided by breakeven analysis. Therefore, this paper is…

The Cost of Virtual Administrative Assistant:- The more experienced they are and the more equipped they are, the more the cost climbs the line. What's more, the more specific the experience, the more it climbs. So in case you're attempting to discover individuals that have profound foundation involvement in our industry, you may discover it costs $30 60 minutes, $40, or $50 60 minutes. In case you're taking a gander at outsourcing things like monetary arrangement planning, where you presumably…

department charged $93 per hours in order to maximize the wealth of its division which could result in an increase in their salaries accordingly. While the Delta tends to minimize the cost of its service payment. (4) For the company itself, the top management team might endeavour to find ways of addressing the problems because if the issue fails to be addressed, the rest divisions might eventually choose to outsource their maintenance service afterwards. This will have a tremendous impact on…

Food manufacturing facilities are high profit businesses all over the country. Each region of the country has a specialty; the north has cheese and dairy, the south has fruits, and the center region has meats. Living in the Midwest, the most common food facilities produce, meats, soy and pizza toppings, the best examples are Tyson and Hormel Foods. That is what my business does we manufacture the best kind of food; brownies. Brownies sell all over the country in grocery stores and markets as…

This report was commissioned to examine a decision regarding the number of shirts to produce for the rock concert, scheduled to be staged in two months and calculate the financial outcomes while maximizing the profit. The research draws attention to two uncertain events, Mr. George Lassiter faced. Firstly Mr. Lassiter has no idea in the number of people attending the concert and secondly about the percentage of attendees who would buy his shirts. George Lassiter is a project engineer for a…

The variable cost is $1 per flange for materials, and $2 per flange ($20 per hour divided by 10 flanges per hour) for direct manufacturing labor. 2. The inventoriable (manufacturing) cost per unit for 5,000 flanges is $3 × 5,000 + $20,000 = $35,000. Average (unit) cost = $35,000 ÷ 5,000 units = $7 per unit. This is below Fred’s selling price of $8.25 per flange. However, in order to make a profit, Graham’s Glassworks also needs to cover the period (non-manufacturing) costs…

A cost accounting system is a process or a method used by a business to estimate the cost of their products and to determine how a firm utilizes and earns funds. It aids management in making decisions and in the planning and control of an organization. All types of businesses, whether service, manufacturing or trading, healthcare, require cost accounting to track their activities. Therefore, different firms follow different methods for verifying cost accounting. This paper focus on activity…

the total machine hour of the quarter is 14,000 hours. Therefore, the cost was used around $1.07 per machine hour ($15,000/ 14,000hours). On the other hand, the machine hour of two products - X and Y which are intend to have a comparison by the management of company, was 0.2 and 0.6 hours. It can be allocate the $0.21 and $0.64 of repair and maintenance cost to product X and Y respectively. After allocate all the cost by this method, that is, ABC costing, the real cost was fairly representation…

Walther & Skousen, Managerial and Cost Accounting, 2009, 37). In other words this cost can’t be the same in all periods of time. It can be for example electricity bill for company’s office or fuel for the truck in the warehouse. Fixed costs are opposite for variable costs. Fixed cost don’t change with the level of an activity. Even if the output or input of a unit changes, it will still remain in the same amount (2. Walther & Skousen, Managerial and Cost Accounting, 2009, 38). Fixed cost can…

The cost accounting system is becoming increasingly important to the organization. Cost analysis helps manager in making decision in areas like pricing, profit, planning, setting standard cost capital investment decision, marketing decision, cost management decisions and others The importance of accounting in managerial decision has been recognized in the literature. Cost data and analysis helps manager in making decision and to pass these decisions on various issues concerning their…