Acounting mangerial project - Assignment Example

Accounting managerial project My report will deal on Barber foods. Barber foods is a food manufacturing company that usually apply management accounting practices. The application of management accounting is essential in any company setting. This is because the management accounting skills usually help the management in the making of decisions that are critical to the company. The decisions may be on the purchase of raw material or the quality of products that are to be produced by the company.

The management accounting practices that are applied by barber foods include total quality management and just in time system. Total quality managementThe issue of total quality management usually focuses on the quality of products or services that are been offered by Barber foods. The company deals with ser ices and products. The services that are involved in the delivery of food and the selling of food need to be perfect so as to be appealing to the customers. The customers require satisfactory products and services so as to become loyal to the company products.

As a result of that, barber foods has invested a lot on the delivery of food products and the means through which the products are delivered. That is in an attempt to ensure that there is customer satisfaction (Caplan, 14).The advantage of the company applying the technique is the fact that the provision of quality usually helps in the cutting of costs. According to analyst, the best way in which a company can become cost effective is only by the company eliminating any sorts of defects that may occur at any point of manufacturing and that will help cut on costs that are not necessary.

The main aim of using total quality management is t ensure that there are controls that are preventive that help in the prevention of defects that occur.Just in timeThe just in time technique is a technique whereby the products of a company are made available when needed. That is a useful strategy for barber foods because it deals with food which is a perishable product. That means that the availability of a stock that is large could lead to a loss to the company. Just in time strategy usually deals with the company availing its products when required by the customer.

That means that there will be no instances of company costs resulting from perishable goods or any instances of stock outs because the products will be made available when required. The use of JIT has helped Barber foods to cut costs on work in progress, finished goods, and raw materials. It has led to the reduction of holding costs that is associated with stock and reduction in the losses that result from perishable products and it also leads to control that is effective (barberfoods.com)The use of the JIT system is however challenging because there can be the occurrence of stock outs in an instance whereby a customer wants a product within a short duration of time.

The use of TQM and JIT process usually work hand in hand because it ensures that quality is achieved and costs are reduced.Work citedCaplan, D. management accounting concepts and techniques. New York. Free State, 2002. Print.Barber foods ltd. Retrieved on 26th November 2012. From http://www.barberfoods.com/.