You are appointed as the management accountant of a company which has diversified activities in both sectors; services and manufacturing. Company intend to increase its profitability through cost controlling and pricing strategies. As a management accountant, you need to assist the board of directors in making informed decisions. Your task is to write a report to the Board of Directors that will be discussed in the next board meeting.
You are required to:
1. Appraise the need for investing in the latest software of management accounting as well as financial accounting in your selected organisation, argument for having investment in management accounts highlighting differences between management accounting and financial accounting. (300words).
2. Analyze the importance of classifying costs on the basis of types, behaviour, function and relevance in business decision making, with suitable examples. (500 words)
3. Evaluate the objectives of preparing budgets and provide examples for operational budgets. (Four classification of the costs, graphs/charts650 words).
4. Determine how standard costs are used for variance analysis and discuss the terms favorable and adverse variances with suitable examples. Meaning of standard costs, types of variance analysis stating favorable and adverse variances550 words) Introduction, content, conclusion, referencing Discuss standard cost with examples for adverse and favorable variances. Demonstrate the ability to relate theory to the real world. Arguments should be clearly summed up to reach a conclusion and recommendation. Clear, professional evidence of wide research should be provided from UK.
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