Management Accounting Assignment Help Sample

INTRODUCTION

Management accounting is the crucial aspects which is implemented under the business for attaining sustainable advantages over the other rivals. Now, each firm is trying to attain its sustainable development by using management accounting tools (Hutaibat, 2012). These are the benefits which can only be achieved after implementing these tools into the firm.

Case study 1

A). Based on static budget report:

1. Main causes of loss in net income

The main issue of loss in the net income is due to the inefficient use of resources. Due to inefficient use of resources, company did not control the variable costs in an efficient manner. Which was the main cause loss in net income. Although, fixed cost does not create any impact over this. But, to be frankly speaking, this affacts the contribution of the company.

2. Did administration do a better, average, or poor job of managing expenses?

I firmly believe that the administration did a poor job in managing variable costs. Because, the company is wasting their resources by way of inefficient use of resources effectively. Henceforth, administration was not able to limit the variable costs efficiently. Although, they controlled fixed costs efficiently.

3. Were management's decisions to stay competitive sound?

According to me, this has been seen that that the management's decisions to remain competitive probably were healthy. Because, salary and wages, they controlled effectively which makes the company to stay competitive.

b). Flexible budget:

• Based on the above flexible budget report, attempt three questions in part (a) above.

1. What was the main cause(s) of loss in net income?

Ans. The main issues of limit the net incomes are due to the inefficient control over the variable expenses. This is the main issue by which the loss is occurred. Under this case, company were not able to manage its variable cost efficiently.

2. Did administration do a better, average, or poor job of managing expenses?

Ans. Under this situation, the management of the company poorly manage their operations. That is why, management can't manage the variable costs effectively. However, they only use delivery expenses effectively (JOSHI, and et. Al., 2011).

3.Were management's decisions to stay competitive sound?

Ans: The management decisions were the competitive in nature and this reflects the great sound for the firm. Now, according to me, management makes certain changes in order to control their variable costs so that they could able to come in the competitive world.

Case study 2

Balance score card is the strategic planning and administration system which firm implement to: communicate what company is trying to attain, line up with regular works which everyone is trying with strategy, specialised projects, products and services. Under the given case study, BSC declares that company see the firm from four perspectives, and to grow objectives , assess, targets, and initiatives relative to following points of view:

Financial perspective: To become a leading retailer of luxury products in Australia and New Zealand. Company is having surplus amount of return that is why, it is providing greater return to shareholders and this will also helps the firm to regularly expand and emerge the firm. Under this report, this also been seen that the management is striving hard to make its surplus profits more.

Customer perspective: This perspective reflects firm's performance from customer perspective or other key stakeholders which firm is willing to serve in front of them. Under this case, LFR is ready to provide a best luxurious products to the customers. As this has a brand reputation for storing the best quality products.

Internal process: This perspective firm's performance from the quality point of view and superiority regarding to firm's products or services. Under this, LFR is providing best quality products, which is the company's foremost requirement that are required to be met by the management.

Organisational capacity: This is the learning and growth perspective which views firm performance via human resources, infrastructure, technology, culture and different capabilities. The LFR sales department emerged a strong relationship with their customers which they are going to serve a strong relationship with the them.

B). Emerge in the form of a KPI for each objective identified.

2. Apply balance scorecard

a). Internal perspective measures the firm performance and analysing that firm performance is great at firm level but this becomes inefficient in store level. Because, firm offer luxurious products and for that it needs great offer to the firm (Zaleha Abdul Rasid and et. Al., 2011).

b). LFR employees provides great services to their customers and trained them by providing training.

c). These are connected to the previous KPI and try to overcome the issues that would help out to make the company in order to sustain operational functions.

CONCLUSION

From the above mentioned report, this has been analysed that the Monatana farm provides budget by which actual outcomes were analysed, and variances are overcome. In another case study, BSC approach is used in order to attain their business operations effectively.

REFERENCES

Books and journals:

Hutaibat, K.A., 2012. Interest in the management accounting profession: accounting students’ perceptions in Jordanian universities. Asian Social Science. 8(3). p.303.

JOSHI, P.L. And et. Al., 2011. Diffusion of management accounting practices in Gulf Cooperation Council Countries. Accounting Perspectives. 10(1). pp.23-53.

Quagli, A., 2011. Goodwill accounting as a missing link between financial and management accounting: literature review and research agenda. Financial reporting.

Zadeh, 2011. Accounting for decision making and control. Issues in Accounting Education. 26(1). pp.258-259.

Zaleha Abdul Rasid, S and et. Al., 2011. Management accounting and risk management in Malaysian financial institutions: An exploratory study. Managerial Auditing Journal. 26(7). pp.566-585.

[Online]

Management Accounting 2017 [Online]. Available Through: <https://www.imanet.org/insights-and-trends/management-accounting-quarterly?ssopc=1>. [Accessed on 25^th September 2017]