Following are the two questions for the assignment:-
Q1) According to ClMA, activity-based costing is defined as an: "An approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs. Resources are assigned to activities, and activities to cost objects based on consumption estimates.
The latter utilise cost drivers to attach activity costs to outputs.' ClMA Official Terminology, 2005.
As a manager you are required to write a report where your advise the management regardingy the decision of the use of activity based costing, you need to critically evaluate the activity based costing method with the help of the following questions and using academic articles to support your report:
- Why organisations are interested in activity-based techniques?
- Why activity-based costing is different from conventional methods?
- Why implementing Activity-based costing can be difficult?
Q2) A. CIMA (chartered Institute of Management Accountants), define cost Unit as "A quantitative unit of product or service in relation to which cost are ascertained" One student in training in the management department asks you more clarifications regarding the definition and how to choose the appropriate cost unit to calculate the overhead absorption rate.
Critically evaluate the definition and explain to the student by giving examples.
B. According to ClMA (Chartered Institute of Management Accountants), in a report on how Management accounting can support of the strategic management, we can read the following: In the 1980s management accounting was criticised for becoming too internally focused on operational issues and was little help to managers making strategic decisions. The term strategic management accounting was introduced in 1981 and was defined as "the provision and analysis of management accounting data about a business and its competitors for use in developing and monitoring business strategy".
You are required to critically evaluate the way Management accounting can help decision making by answering the following questions and using academic articles to support your analysis:
1. How can management accounting helps strategic decision making process within organisations?
2. Giving examples of the management accounting tools that are used in a decision making.
3. The extent to which management accounting can help in decision making by highlighting the limitations of certain tools.
You are provided with the following data from the books of the company ALYSSA LTD, producing one product DELTA, for the year 2015.
| Direct material cost per unit |
OMR 24
|
|
Direct labour cost per unit
|
OMR 27.20
|
|
Variable manufacturing overhead per unit
|
OMR 2.80
|
|
Total fixed manufacturing overhead per year
|
OMR 360,000
|
|
Variable selling and administration expenses
|
OMR 6 per unit sold
|
|
Fixed selling and administration expenses
|
OMR 180,000
|
|
Number of units produced per year
|
30,000 Units
|
|
Number of units sold per year
|
24,000 Units
|
|
Opening stock of finished goods
|
0
|
|
Selling price
|
OMR 120
|
#) Explain the difference between the marginal costing method and the total absorption costing method, using academic articles to support your analysis?
#) Explain the reason for any difference in net profit reported in the two statements and reconcile any such difference?
#) write a report where you critically evaluate the use of cost-Volume-Profit analysis in decision making and using academic articles to support your analysis??
I want this managerial accounting assignment. What will be the price I want it by tomorrow evening.