Management Accounts Essay Example | Topics and Well Written Essays - 2500 words

Management Accounts - Essay Example For example, the cost of labour engaged in a service department can be charged wholly and directly but the canteen expenses of the factory cannot be charged directly and wholly. Its proportionate share will have to be found out. Charging of costs in the former case will be termed as "allocation of costs" whereas in the latter, it will be termed as "apportionment of costs." Management Accounting is an indispensable tool for any business unit to set budgets. It sets standard costs and actual costs of processes, departments or products and through variance analysis measure the profitability and social use of funds. This assists the management to attract more investors and tap potential funding sources. The main aim of costing is the providing crucial management information to ascertain costs, proper allocation of costs to a centre of responsibility, cost planning and control. Further, it provides the necessary information to plan the cost of operation and ability to monitor and control those cost against the plan. Costing can provide all the information required for the effective management decisions. The effective costing is therefore essential for survival of any business. 3.2 Methods of costing Costing can be defined as the procedure and technique of ascertaining costs. The principles in every method of costing are same but the methods of analyzing and presenting the costs differ with the nature of business. The methods of costing are as follows: Absorption Costing Marginal Costing Job Costing Activity Based Costing Batch Costing 3.2.1 Absorption Costing Absorption costing means that all of the manufacturing costs are absorbed by the units produced. In other words, the cost of a finished unit in inventory will include direct materials, direct labour, and both variable and fixed manufacturing overhead. As a result, absorption costing is also termed as full costing or the full absorption method. 3.2.2 Marginal costing Marginal cost means the cost of the marginal or last unit produced. It is also defined as the cost of one more or one less unit produced besides existing level of production. Marginal costing may be defined as the technique of presenting cost data wherein variable costs and fixed costs are shown separately for managerial decision-making. Marginal costing technique has given birth to a very useful concept of contribution

Computer Information System Brief Essay Example | Topics and Well Written Essays - 1000 words

Computer Information System Brief - Essay Example It is easily understood that Kudler has appropriately invested and organized their computer information method for various business functions. To develop the organization’s computer information system, it is necessary to identify the key business and accounting information needs such as strengths and weaknesses, opportunities as well as threats that Kudler may encounter. â€Å"The accounting firm discovered many troubles in the current information system for Kudler’s Fine Foods. While investigating Kudler’s Fine Foods’ key business and accounting needs, it was determined that they are in need of many changes† (Kudler Fine Foods Information System Analysis, n.d., para. 2). To correctly evaluate and suggest a successful computer system and make assessments based on: 1) Key business and accounting information requirements of Kudler’s Fine Foods. 2) Identifying Kudler’s current computer information system 3) Explaining advantages received from technological improvements in Kudler’s business. 4) Recognizing strengths and weaknesses by way of probable technology threats. The management of Kudler understands that using computer information technology enhances the accounting operations of the company and helps in meeting their company requirements. The computer information system in Kudler feels that food incorporation will develop the communication system between their retail stores by connecting every point-of-sale terminal, altering just-in-time procedure of inventory control management and cooperating with workers, clients as well as dealers to bring foodstuffs to market as quickly and cost efficiently as possible. Besides, by forming a virtual company, Kudler will be capable of expanding a well-organized distribution infrastructure in addition to organizing network of citizens and monetary resources to rapidly make profits for the company. Analyze the strengths and weaknesses of Kudler’s current comput er system and technology use, including hardware and software. At the present, most organizations use Information Technology (IT) to enhance functions and develop consumer service. Kudler Fine Food has plans to promote the inventory and ordering mechanization by setting up new e-commerce abilities and an online cookery linkage. Strategic Information Systems of Kudler Fine Foods Company have the capability to amplify strengths into possibly sustainable competitive benefit. Strengths of Kudler’s current computer system are as follows: Easily assessing all costs associated and completion targets. Ease of preservation and maintenance. Tolerates alterations in Management Information System staffing. Documentation of all the activities in all the locations. Well defined user input. Controls all the activities taking place in all the locations. Weaknesses of Kudler’s current computer system include: Increased development time. Enlarged cost of development. Inflexibility. Diff iculties in estimating expenses and projecting overruns. Explain what opportunities Kudler has in terms of technology and provide suggestions for improving Kudler's ability to maximize these opportunities: The Kudler’s food store was established by Kathy Kudler. Kathy enjoys cooking epicure foods and realized an opportunity to give her cooking to the public as a source to obtain revenue. Her stores give the most delicious domestic and imported food items such as pastries and other fresh baked eatables, fresh meat, fresh produce and seafood, packaged food and condiments, specialty