Management Accounting

Topics: Costs, Cost, Management accounting Pages: 19 (6890 words) Published: February 4, 2013
Content Page
Section Page No
1. Introduction 4
2. Task1: Be able to analyse cost information within a business. 4-10 1.1. Classify different types of cost. How are the cost classified in Davis. 4-6 1.2. What are the different costing methods? Identify and explain the costing method used by Davis. 7-8 1.3. How is the cost calculated, using appropriate techniques? What is the costing technique used by Davis to calculate its costs. 8-10 1.4. Analyse the cost data of Davis focusing on the technique used for the purpose. 10-11

3. Task2: Be able to propose methods to reduce costs and enhance value within the business. 10-13
2.1. How are the costs reports prepared and analyzed in Davis? 10-11 2.2. What are the various performance indicators used by Davis to identify its potential improvements. 11-12

2.3. If you were their management accountant what would you suggest to Davis to reduce its costs, enhance value and quality? 12-13 4. Task3: Be able to prepare forecasts and budgets for a business. 13-17 3.1. Explain the purpose and nature of the budgeting process adopted by Davis. 13 3.2. What is the budgeting method used by Davis and reflects its needs? Comment with your advice and suggestions. 14-16 3.3. How is the budget prepared by Davis, what is the method used for this purpose? Comment with the budgeting statement published in the report. 16 3.4. Illustrate the cash budget of Davis and comment on its findings. 16-17 5. Task4: Be able to monitor performance against budgets within the business of Davis. 17-21

4.1. How are the variances calculated? Identify possible causes and recommend corrective action. 17-20
4.2. Reflect the operating statement of Davis and how is reconciled with the budget and actual result. Comment on a few findings analyzing the budget and actual. 20
4.3. Comment on the report findings published by the management in accordance with responsibility centers. 20-21 6. Conclusion 21
7. Reference List 21-22

Davis Service Group
Section1: Introduction
Davis Service Group is a large public limited company employing around 17,000 people. Its shares are quoted on the London Stock Exchange. Davis Services Group has been serving the since 1978. We are a small business dedicated to providing quality, yet affordable technology services to other small businesses, churches and non-profits. We offer a wide range of services including contracts to source, clean and maintain industrial textiles, such as protective clothing and linens. And this contains four key sectors: work wear, healthcare, hotels and restaurants, and general facilities, such as washroom linen and more. Davis service group headquarters are situated in London but its operations are spread across the UK and Ireland, continental Europe and Scandinavia. They also managed by two separate companies: Sunlight in the UK and Berendsen on the Continent. Sunlight is the market leader in the UK. Berendsen is the market leader in Norway, Sweden, Denmark and Holland. They promised their client that they doing their business always in proper way in their local as well as international market also. Section2: Task1-Be able to analyse cost information within the business of Davis. 1.1. Classify the different types of cost. How the cost is classified in Davis? In business, cost is usually a financial evaluation of (1) effort, (2) material, (3) resources (4) time and utilised consumed (5) risk incurred and (6) opportunity...
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