Management Accounting Or Managerial Accounting Accounting Essay

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Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. In contrast to financial accountancy information, management accounting information is are primarily forward-looking, instead of historical, model based with a degree of abstraction to support decision making generically, instead of case based, designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators, usually confidential and used by management, instead of publicly reported, computed by reference to the needs of managers, often using management information systems, instead of by reference to general financial accounting standards.

wira travels operates a small fleet of five (5) vehicles which provide transportation services to deliver goods for small manufacturing companies in Kulim, Kedah. Most of the time, all vehicles will be used simultaneously.

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From the in formation given below for the year 2009, you are required to calculate:

The total cost

The average cost per tonne and per kilometre

Drivers wages RM 1,000 each per month

Depreciation of vehicles per annum RM 25,000

Petro expenses RM 37,750

Repairs and maintenance RM 21,250

Vehicle licenses RM 400 per vehicle

Insurance cost RM 1,600 per vehicle

Tyres cost RM 2,000 per vehicle

Miscellaneous costs RM 4,000

Total tonne carried 60 tonne

Total km travelled 7,000 km

Answer:

The total cost

Drivers wages RM 1,000 each per month

RM 1,000*5*12

RM 60,000

Depreciation of vehicles per annum RM 25,000

RM 25,000*5

RM 125,000

Petro expenses RM 37,750

RM 37,750

Repairs and maintenance RM 21,250

RM 21,250

Vehicle licenses RM 400 per vehicle

RM 400*5

RM 2,000

Insurance cost RM 1,600 per vehicle

RM1,600*5

RM 8,000

Tyres cost RM 2,000 per vehicle

RM 2,000*5

RM 10,000

Miscellaneous costs RM 4,000

RM 4,000

TOTAL COST

RM 268,000

The average cost per tonne and per kilometre

(a) Total tonne carried 60 tonne

Total cost

Total tonne

= RM 268,000

60 tonne

= 4,466.67 tonne

(b) Total km travelled 7,000 km

Total cost

Total km

= RM 268,000

7,000 km

= 38.29 km

Penang pizza sdn bhd is involved in selling cakes. You are required to classify the following costs according to their behaviour.

No.

Cost items

Fixed cost

Variable cost

Semi-variable cost

1.

Flour

2.

Electricity Expenses

3.

Sugar

4.

Salary of Baker

5.

Salary of Cashier

6.

Depreciation of machine

7.

Insurance

8.

Telephone Expenses

9.

Director's Salary

10.

Baking Powder

11.

Eggs

12.

Rental of shop

Answer:

No.

Cost items

Fixed cost

Variable cost

Semi-variable cost

1.

Flour

2.

Electricity Expenses

3.

Sugar

4.

Salary of Baker

5.

Salary of Cashier

6.

Depreciation of machine

7.

Insurance

8.

Telephone Expenses

9.

Director's Salary

10.

Baking Powder

11.

Eggs

12.

Rental of shop

QUESTION 2

Define the following costs and draw three separate graphs to illustrate the cost behaviour pattern and give an example for each of the costs in relation to a printing shop.

Fixed cost

Variable cost

Semi-variable cost

Answer:

Fixed cost are same (fixed) amount need to be paid by business regardless whether business doing good or not (high or low business activities). Example are management in salary, rental and insurance.

Variable cost are cost that totally related to production. The more production, the more variable cost will be incurred. Example are workers in operation line and raw material.

Semi-variable cost are combination of fixed and variable cost. The fixed amount still have to paid plus variable cost that depend on production.

b) identify the following items as controllable or non-controllable by the head of the production department:

Direct labour working hours

Insurance of machinery

Types of material used in production

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Price of material paid to supplier

Answer:

Direct labour working hours

Non-controllable

Insurance of machinery

Non-controllable

Types of material used in production

controllable

Price of material paid to supplier

controllable

CONCLUSION

The hospitality industry is a broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, and bartenders.), management, marketing, and human resources.