ACF2200 Introduction To Management Accounting

Free Samples

ACF2200 Introduction To Management Accounting

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

ACF2200 Introduction To Management Accounting

0 Download6 Pages / 1,413 Words

Course Code: ACF2200
University: Monash University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Question:

Conduct research to explain the value of cost classifications for RealFood and how this may assist the CEO in improving their decision-making processes.
 
Conduct research into costing techniques that RealFood might find useful. Based on your research and using the detail provided in the case, choose a specific technique (or set of techniques) that you believe would be most suitable for RealFood. Describe specifically how your chosen technique(s) could be used, providing tangible examples of how they would operate within RealFood. It should be clear from these examples how RealFood would determine a product cost for their products. Also, briefly describe why you consider your chosen technique(s) to be superior to other techniques.
(Please note: you are not required to actually calculate any costs here, just outline how costing could be done differently. Therefore, you may wish to provide a table or diagram outlining the operation of your proposed costing technique(s).
Using the detail in the case, describe how your chosen method of calculating product cost will be beneficial within RealFood and have relevance to management.
It is likely that you may require to make some assumptions when answering the questions. You are strongly encouraged to go through the ‘Guidelines on Assignment Submission’ on Moodle before you start working on the Assignment.

Answer:

Introduction
With the due passage of time, RealFood has assumed a strong status in the market. Despite all competition, it crafted a niche for itself in the market.  As it is getting huge orders and the products are being sold in health food outlets around the country like About lIfe, Coles, etc it is the need of the hour that the company should flourish itself in the system of cost management. As there are various product range like granola bars, museli bars, chocolate/yogurt it is important that the company should have a proper system of the cost that will enable the classification of costs.
Cost classification
The importance of cost classification is of vital importance to the company at large and considering the case of RealFood, it is more important owing to the products that are being dealt.
Production cost
One of the major steps in the classification of the cost is the classification of the production costs. It is used to ascertain the gross revenue, raw materials needed by the company, wholesale product and direct labour that is directly linked to the cost of production. Capturing such values helps in the classification of the cost and will help the CEO in understanding how much is the costing that the company requires to manufacture a product (Kim, 2008). As seen in the case of RealFood it is difficult to ascertain the exact cost and the pricing is done as per the experience that might not be completely accurate hence, a special emphasis on the cost of the product will lead to better result.
Proper cost classification, when managed by the accounting system of the company, helps the manager to know the need of data that makes up the cost of production is contrary to the material cost for the repair of the production line. Hence, classification of cost helps will help RealFood in understanding the ascertaining the classification of data (Lanen, Anderson & Maher, 2008). When such value is captured it helps in knowing the cost needed to manufacture a product.
Fixation of the selling price
It needs to be noted by RealFood that the profit can be enhanced by following either of the two methods that is the reduction and control over the costs or by enhancing the value of sales through the increment in the sales volume or price. Therefore, fixation of selling price is vital for the management of RealFood. The divide of costs into fixed, as well as variable elements, helps the management to undertake the best selling price policy, however, the selling price should not be below the variable cost (Petty et. al,  2012).
Costing techniques 
Going by the nature of operations of RealFood, it can be stated that demand-based pricing and competition based pricing can be used.  When it comes to demand-based pricing it can be said to be a pricing mechanism where the product prices are finalized as per the demand. If the demand for the product is high then the organization prefers to set higher prices so that the gain can be more (Horngren, 2011). However, if the demand is less, lower prices can be set to drive the customers. In the case of RealFood, there are many products that are related to health and the presence of demand-based pricing will help in setting the prices as per the demand.  
The second method that can be used is the cost plus pricing. It is already noted that the manager by experience ascertains the cost of the product. This is done by assessing the ingredients that are being used. Hence, in order to determine the cost, the method of cost-plus pricing can be used in an effective manner. When the price is ascertained,  a fixed percentage that is the markup percentage is even added to the total cost. This helps in deriving at the price that will help in yielding profits too (Lanen, Anderson & Maher, 2008). For example, if RealFood is selling a product at $5 then another $1 can be added to know the final price of the product that sums the total amount at $6. This is effective for RealFood in the sense that the company is a food retailing company that sells health-related snacks and food. In this scenario, it needs to be noted that order pertains to different needs. Hence, in the advent of the changing requirement, this method will suffice the best result.  Further, the utilization of this method can be effective in case of big order where the
Cost-plus pricing is also known as average cost pricing. This is the most commonly used method in manufacturing organizations (Broad & Crowther, 2001).
Activity-based costing is an important tool when it comes to the ascertainment of costs. It enables the organization to gain sharp insight into the products and knows that are profitable and those not. The life cycle of a product can be known with ease and trace the areas where improvement is needed. Hence, this is highly effective for RealFood as the price can be known with ease (Marsh, 2009).
Relevancy of chosen method
Activity-based costing can be defined as cost price computation and hence the allocation of drivers are done to the cost that is incurred. In this scenario, it is assumed that there is a strong link between the products and the costs that accompany. ABC spots the link between the business activities and the resources required to manage by assignment of the cost to every resource hence projecting the overall expense of the activity. When it comes to real food there are many situations that need to be revealed and with the help of the ABC method, such offerings can be done with ease (Broad & Crowther, 2001).  when a value is added to the product, this method is framed in a manner that leads to the more informed decision and projects the pricing mix, investments and change in the overall organization. ABC can, therefore, be commented as a tool that helps in identification and grasp of the cost control followed by an enhancement in the productivity, as well as profits (Needles & Powers, 2013). The introduction of ABC will help RealFood to lessen the total 3% to 5%. When the focus shifts to higher margin and growth products, it is more likely to bring a 5% to 10% increment in the overall revenue.  
Hence, an overall analysis of the ABC method gives a vivid description that the method of ABC is highly effective for RealFood as it is directed towards the benefit of the organization as a whole.  ABC can, therefore, be said to be an important tool that helps in knowing the various situation that a product undergoes before the completion and the cost that is involved in it (Parrino, Kidwell & Bates, 2012). Hence, the management of RealFood can take the recourse of this method ass it will help in knowing the cost with ease and better pricing decision can be taken in this regard. The overall production cost or the cost of a unit can be known through it and hence, it is highly effective (Larry & Christopher, 2012).
Conclusion
The overall analysis and report sheds light on the fact that strategies of the company reflect their potency. The introduction of ABC is an important tool in the hands of the management that will help the business to flourish. It is helpful when it comes to classification of cost.  In all probability, the chosen method will deliver the best  result to RealFood.
References
Broad, M., & Crowther, D. (2001). Activity based costing in universities – an inappropriate technique? Journal of Applied Accounting Research, 6(2), 55-89. Available from:  https://search.proquest.com/docview/1031187247?accountid=30552 
Horngren, C. (2011). Cost accounting. Frenchs Forest, N.S.W.: Pearson Australia.
Kim, L.S. (2008).  Activity based costing in universities – An inappropriate technique?. Accounting, Auditing & Accountability Journal. 21(2), 204-228.DOI:10.1108/09513570810854400
Lanen, W. N., Anderson, S & Maher, M. W. (2008).  Fundamentals of cost accounting. NY: Hang Loose press.
Larry M. W & Christopher J. S. (2012). Managerial and Cost Accounting. Pearson Press
Marsh, C. (2009). Mastering financial management. Harlow: Financial Times Prentice Hall.
Needles, B.E. &  Powers, M. (2013).  Principles of Financial Accounting. Financial Accounting Series: Cengage Learning.
Parrino, R, Kidwell, D. and Bates, T. (2012).  Fundamentals of corporate finance. Hoboken, NJ: Wiley
Petty, J. W, Titman, S., Keown, A. J., Martin, J. D., Burrow, M. and Nguyen, H. (2012). Financial Management: Principles and Applications, 6th ed. Australia: Pearson Education Australia.

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.

E-mail

Yes, alert me for offers and important updates

Submit 

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 6 pages

PAY 4 USD TO DOWNLOAD

*The content must not be available online or in our existing Database to qualify as
unique.

Cite This Work
To export a reference to this article please select a referencing stye below:

APA
MLA
Harvard
OSCOLA
Vancouver

My Assignment Help. (2021). Introduction To Management Accounting. Retrieved from https://myassignmenthelp.com/free-samples/acf2200-introduction-to-management-accounting/mastering-financial-management.html.

“Introduction To Management Accounting.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/acf2200-introduction-to-management-accounting/mastering-financial-management.html.

My Assignment Help (2021) Introduction To Management Accounting [Online]. Available from: https://myassignmenthelp.com/free-samples/acf2200-introduction-to-management-accounting/mastering-financial-management.html[Accessed 18 December 2021].

My Assignment Help. ‘Introduction To Management Accounting’ (My Assignment Help, 2021) accessed 18 December 2021.

My Assignment Help. Introduction To Management Accounting [Internet]. My Assignment Help. 2021 [cited 18 December 2021]. Available from: https://myassignmenthelp.com/free-samples/acf2200-introduction-to-management-accounting/mastering-financial-management.html.

×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}

×

Thank you for your interest
The respective sample has been mail to your register email id

×

CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.

Account created successfully!
We have sent login details on your registered email.

User:

Password:

Do you need a mentor who can answer you how to write a proper literature review outline? Are you looking for a good critical analysis essay that will support your paper? MyAssignmenthelp.com is a one-stop solution for all your queries. Send us your college paper format and our paper editor will help to transform your paper into impressive writing. Further, if you are seeking flawless paper, ask our experts ‘write my paper for me’

Latest Management Samples

div#loaddata .card img {max-width: 100%;
}

MPM755 Building Success In Commerce
Download :
0 | Pages :
9

Course Code: MPM755
University: Deakin University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answers:
Introduction
The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2…
Read
More

SNM660 Evidence Based Practice
Download :
0 | Pages :
8

Course Code: SNM660
University: The University Of Sheffield

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Answers:
Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I
Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l…
Read
More
Tags:
Australia Maidstone Management Business management with marketing University of New South Wales Masters in Business Administration 

BSBHRM513 Manage Workforce Planning
Download :
0 | Pages :
20

Course Code: BSBHRM513
University: Tafe NSW

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answer:
Task 1
1.0 Data on staff turnover and demographics
That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba…
Read
More

MKT2031 Issues In Small Business And Entrepreneurship
Download :
0 | Pages :
5

Course Code: MKT2031
University: University Of Northampton

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Answer:
Entrepreneurial ventures
Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c…
Read
More
Tags:
Turkey Istanbul Management University of Employee Masters in Business Administration 

MN506 System Management
Download :
0 | Pages :
7

Course Code: MN506
University: Melbourne Institute Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answer:
Introduction
An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste…
Read
More
Tags:
Australia Cheltenham Computer Science Litigation and Dispute Management University of New South Wales Information Technology 

Next