Report on Strategic Management Accounting of Manac Plc. 1
CONTENTS
Report on Strategic Management Accounting of Manac plc. 1
Introduction 1
Pricing Decision Analysis 1 1. Cost-Plus Pricing 2 2. Demand – Estimate Pricing 3 3. Product-Mix Decision 4 4. Pricing Using Target Costing 5
Standard Costing and Variance Analysis 6 1. Standard Costing Performance 7 2. Variable Elements Analysis 8 3 Value and Limitations of Standard Costing and Variance Analysis 9
Discussion of Replacing Absorption Costing System with Activity Based Costing System 11 Advantages of Activity Based Costing 12 Disadvantages of Activity Based Costing 14
Conclusion 16
References 18
3156 Words in total.
Report on Strategic Management Accounting of Manac plc.
Introduction
Data of the 3rd season shows that, with the output sustains matching manufacturing capacity, sales of company products increases steadily. In the meanwhile, data of the seasonal profit doesn’t seem to reach company budget target. It was said that the increase of sales would have brought in handsome profit. Standard costing and absorption costing are executed in the company, but more details of strategies are to be carried out. (3 Drury, C. 2009) This report aims to clarify the models and concepts of accounting management, analyzes the effectiveness pricing decisions, standard costing and variance analysis, the advantages and between Activity Based Costing system and Absorption Costing system, and come out with a conclusion of proposing a correct strategy to reach company budgeted profit.
Pricing Decision Analysis
Problem lies on the deviation between target profits and selling price, it varies as the increase of sales and decrease of sales volume. Thus, carrying out correct pricing decisions are of vital importance. For Manac operates product manufacturing and sales, it is as a character of a price setter. Common factors such as cost information, product quantity, and period
Report on Strategic Management Accounting of Manac plc. 1
Introduction 1
Pricing Decision Analysis 1 1. Cost-Plus Pricing 2 2. Demand – Estimate Pricing 3 3. Product-Mix Decision 4 4. Pricing Using Target Costing 5
Standard Costing and Variance Analysis 6 1. Standard Costing Performance 7 2. Variable Elements Analysis 8 3 Value and Limitations of Standard Costing and Variance Analysis 9
Discussion of Replacing Absorption Costing System with Activity Based Costing System 11 Advantages of Activity Based Costing 12 Disadvantages of Activity Based Costing 14
Conclusion 16
References 18
3156 Words in total.
Report on Strategic Management Accounting of Manac plc.
Introduction
Data of the 3rd season shows that, with the output sustains matching manufacturing capacity, sales of company products increases steadily. In the meanwhile, data of the seasonal profit doesn’t seem to reach company budget target. It was said that the increase of sales would have brought in handsome profit. Standard costing and absorption costing are executed in the company, but more details of strategies are to be carried out. (3 Drury, C. 2009) This report aims to clarify the models and concepts of accounting management, analyzes the effectiveness pricing decisions, standard costing and variance analysis, the advantages and between Activity Based Costing system and Absorption Costing system, and come out with a conclusion of proposing a correct strategy to reach company budgeted profit.
Pricing Decision Analysis
Problem lies on the deviation between target profits and selling price, it varies as the increase of sales and decrease of sales volume. Thus, carrying out correct pricing decisions are of vital importance. For Manac operates product manufacturing and sales, it is as a character of a price setter. Common factors such as cost information, product quantity, and period
References: Drucker Peter F. (1999) Management Challenges of the 21st Century. New York: Harper Business Drury, C Horngren , C.Y., Foster, G., and Datar, S.M. (1999). Cost Accounting, 10th edition, Prentice Hall, Upper Saddle River, NJ Horngren C, Datar S, and Foster G (2005), Cost Accounting, A Managerial Emphasis, 12th Edition Prentice Hall International Jack, L (2009) The Adoption of Strategic Management Accounting Tools in Agricultural Post Subsidy Reform: A Comparative Study of Practices in the UK the US, Australia and New Zealand, London CIMA. Kalish, S. (1983). Monopolist Pricing and Dynamic Demand and Production Cost. Marketing Scencei. 2, 138-150 Kaplan, R.S Fayek, A. R. (2000). An Activity-Based Data Acquisition and Job Costing Modeling. Walsh, K.D.(editor), ASCE, Orlando, Nagle Thomas and Holden Reed Proctor, R. (2009) Management Accounting for Business Decisions, (3rd Edition), Financial Times Press 我们老师要求第三题的计算题要有例子，不是光光文字说明就行的那种例子