Management Accounting Master - Research Paper Example

Add to wishlist

Summary

When the fixed cost for Component X has to be brought down it is charged on Component Y and it increases to cost of Component Y. It is obvious that it is unethical to allocate the costs of Component X to be charged to the customers of Component Y. It is also not according to the corporate guidelines in the overhead cost allocation…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER98.2% of users find it useful

Management Accounting Master Research Paper

Read Text Preview

Subject: Miscellaneous
Type: Research Paper
Level: Masters
Pages: 12 (3000 words)
Downloads: 4
Author: reinholdkrajcik

Extract of sample "Management Accounting Master"

Download file to see previous pages

The total number of operating hours taken by Operation 2 is 9144 hours. The difference between the total operating hours and the time taken for operation 2 is 3156 hours. If an operation 1 takes 4 hours, then it can be calculated that 789 operation 1 was done during the year. (d) Total variable cost for the year 2005From the information given, it can be understood that, the total cost were 22,554,525. Out of this amount the fixed costs are 18,000,000. The difference between the two is 4554525 which is the total variable cost.(e) Total variable cost of performing Op1 operations during the year It is also given that; the variable cost per operation for Op1 is 2175.

There were 789 operations 1 done during the year. So the total variable cost for operations 1 is 1716075. (f) Total variable cost of performing Op2 operations for the year 2005Out of the total variable costs, 4554525, the variable costs for operations 1 is 1716075. The difference between the two is 2838450, which is the total variable cost of operations 2(g) Variable cost of performing a Op 2 operationAs mentioned above the total variable cost of operations 2 is 2838450. There were 1905 operations 2 done during the year.

Hence, the variable cost per operation 2 is calculated by dividing the total variable cost by the number of operations which is, 1490. (h) Fixed overheads absorbed by a Op1 operation and Op2 operationCurrently the fixed overheads are absorbed by operation 1 and 2 on the basis of time taken for an operation. The total time taken for both the operations is 12300 hours and the total fixed costs are 18000000. If it is assigned based on the time taken for Op 1 and Op 2, then the fixed overheads for operation 1 is.

In case the extra production is into going to be consumed by Division B, additional marketing efforts should be undertaken to identify new customers. From the calculation above, it can be said that, the total number of operating hours during the year was 12300. The total number of operating hours taken by Operation 2 is 9144 hours. The difference between the total operating hours and the time taken for operation 2 is 3156 hours. If an operation 1 takes 4 hours, then it can be calculated that 789 operation 1 was done during the year.

From the information given, it can be understood that, the total cost were 22,554,525. Out of this amount the fixed costs are 18,000,000. The difference between the two is 4554525 which is the total variable cost. As mentioned above the total variable cost of operations 2 is 2838450. There were 1905 operations 2 done during the year. Hence, the variable cost per operation 2 is calculated by dividing the total variable cost by the number of operations which is, 1490. Currently the fixed overheads are absorbed by operation 1 and 2 on the basis of time taken for an operation.

The total time taken for both the operations is 12300 hours and the total fixed costs are 18000000. If it is assigned based on the time taken for Op 1 and Op 2, then the fixed overheads for operation 1 is 4618537 and for operation 2 is 13381463.

...Download file to see next pages Read More

Cite this document

APA
MLA
CHICAGO

(“Management Accounting Master Research Paper Example | Topics and Well Written Essays - 3000 words”, n.d.)
Management Accounting Master Research Paper Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/miscellaneous/1514857-management-accounting-master-research-paper

(Management Accounting Master Research Paper Example | Topics and Well Written Essays - 3000 Words)
Management Accounting Master Research Paper Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/miscellaneous/1514857-management-accounting-master-research-paper.

“Management Accounting Master Research Paper Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/miscellaneous/1514857-management-accounting-master-research-paper.

Cited: 0 times

CHECK THESE SAMPLES OF Management Accounting Master Research Paper

The World of Management

The universities have started the business schools where they provide the degree master of Business Administration, also there were many personalities like Peter Drucker, who provided the theories of management.... The areas of management include human resources, accounting, marketing, operations etc.... The World of management Contents The World of management 1 Contents 2 Introduction 3 Historical Overview of Business Administration 3 Related Jobs in Business Administration 4 Future Job Prospects in the Field 5 Journals Related to Business Administration 5 Conclusion 6 References 8 Introduction In this era of globalization, an efficient management structure is essential for use the available resources optimally in an organization....

7 Pages (1750 words) Research Paper

The Significance of Financial Cost to a Firm

During management accounting, the financial costs records are very important in drafting a cost effective strategy for a company.... The relationship between management accounting and financial costs in a firm enable the analysts in the company to draw a feasible periodic business plan (Codjia, 2012).... Keeping clear accounting records on the financial costs is very important for any given company since the costs are used to determine the profit margins....

6 Pages (1500 words) Research Paper

Environmental Costs to Competitive Advantages

Background Environmentalists regard environmental costs as one of the vital accounting information that necessitates the ability of management to handle its productivity and administrative decisions in order to achieve evaluation and performance of its work appropriately (Esty & Winston, 2009).... Particularly, the application of financial accounting and maintenance of financial statements is substantial for companies in general as it improves the aspect of acquiring the appropriate data and information for company activities (Hitchens, 2002)....

5 Pages (1250 words) Research Paper

A Discussion of Corporate Tax Evasion and Legal and Ethical Considerations

Whereas tax evasion is most commonly thought of on a personal basis, the fact of the matter is that personal tax evasion pales in comparison to the untold millions, billions, even possibly trillions of dollars that go unaccounted for due to intricate accounting mechanisms, offshore accounts, and outright dishonesty with regards to the level of profits that many firms are willing to admit to the government....

4 Pages (1000 words) Research Paper

Accounting Information Systems - Information Needs for the AIS

An accounting information system (AIS) can be defined as a arrangement where raw accounting data are collected, recorded, stored and processed for producing information that are useful to decision makers.... accounting Information System delivers useful information to its user in a timely and systematic manner.... Argument: Research suggests that learning various aspects of the accounting information system can be time... The system is utilised by management for governing various organisational functions such as cash transactions, account receivables, account payable and so on and so forth....

5 Pages (1250 words) Research Paper

Responsibility and Authority in Finance: The Auditor Independence

The judgment is with regard to the true and fair view of the financial statements which are prepared in conformity with the normally recognized accounting principles.... An author of this research "Responsibility and Authority in Finance: The Auditor Independence" aims to shed light on the concept of auditor independence with regard to shareholder activities....

10 Pages (2500 words) Research Paper

Accounting for Strategy and Management Control - Korpi & Ala-Risku

This paper "accounting for Strategy and Management Control - Korpi & Ala-Risku" focuses on the fact that according to Marx's argument in Capital, accounting has two essential functions - that of recognition of the economic process and the function of mediating the metamorphosis of economic value.... hellip; The first function of accounting is process-oriented, a matter of form, while the second is value-oriented, a matter of substance.... he article to be critiqued is “Life cycle costing: a review of published case studies,” which deals with life-cycle costing as a method used in managerial accounting....

16 Pages (4000 words) Research Paper

Environmental Costs to Competitive Advantages

nvironmentalists regard environmental costs as one of the vital accounting information that necessitates the ability of management to handle its productivity and administrative decisions in order to achieve the evaluation and performance of its work appropriately (Esty & Winston, 2009).... Particularly, the application of financial accounting and maintenance of financial statements is substantial for companies in general as it improves the aspect of acquiring the appropriate data and information for company activities (Hitchens, 2002)....

6 Pages (1500 words) Research Paper