Mini Project topic: Introduction to Management Accounting.
You are the person in charge of the management accounting department of a manufacturing company. You are required to mentor your junior of the r staff on the essentials of the management accounting in the following areas: (Note: you may need to create an illustration to elaborate the following matters). (A) Explain how to cost can be classified by their behaviour, with particular reference to the effects both on total and on until costs. Your report should:
(i) Say why it’s necessary to classify costs by their behaviour and (ii) Be illustrated by sketch graphs within the body of the report. (B) Cost classification used in management accounting include: (i) Product costs
(ii) Period costs
(iii) Direct costs
(iv) Indirect costs
Explain each of those classification, with examples of the type of costs that may be included. (C) Distinguish between, and provide an illustration of what constitute a “cost unit” and a “cost centre”.
Mini Project topic: Essentials of Management Accounting
(A) Management accounting is the application of professional knowledge and skill in the preparation and presentation of information to all levels of management in the organization structure. The source of such information is the financial and cost accounting. The information is intended to assist management in its policy and decision-making, planning and control activities. You are required to explain to your senior management of how the provision of management accounting informations can creates sustainable SUCCESS in an organization. (B) Materials constitute a significant part of the manufacturing costs of an organization and therefore it is essential that proper control and accounting procedures be exercised in all aspects of the materials control system in the areas of: * Initial ordering and purchases
* Inspection of materials