Role of Management Accountant
Total words : 2480 words excluding sub headings and references (Total 8 pages)
Total words : 2480 words excluding sub headings and references (Total 8 pages)
ANNOVIM PLC
ANNOVIM PLC
INTRODUCTION
Managers in Annovim Plc have to understand since the early 1980s a number of ‘innovative’ management accounting techniques have been developed such as activity-based techniques (costing, budgeting and management), strategic management accounting and the balanced scorecard. From the context of the assignment, each division is regarded as a profit centre, where the divisional managers of the three divisions i.e. candy bars, chews and other sweets will try to maximize profit in order to ensure that they obtain the minimum required profit margin to achieve their own goals of getting bonuses. So, managers of these divisions either mark-up their prices or improvements in financial performance by sacrificing investments in the materials used, on-time delivery or tweaking with the product mix. The other way, they will try to minimize costs either through reducing the direct and indirect costs relating to their divisions. There is a possibility that the marketing department may suffer from an overpriced product of candy bars, chews and other sweets since each division is a profit centre and tries to maximize their profit. As a result, organizational goals are ignored or overlooked.
ROLES OF MANAGEMENT ACCOUNTANT
Over the years, it is believed that ‘new’ techniques have been introduced to overcome a claim that ‘outdated’ management accounting practices had provided misleading information for planning, controlling, decision making and communication. The managers in Annovim Plc will have implement cost determination to ensure proper accounting and that transfer pricing will not result in disfavourable figures to their own departments. Cost determination at Annovim Plc across the three processes including mixing, cooking and packaging is one of the functions of
Total words : 2480 words excluding sub headings and references (Total 8 pages)
ANNOVIM PLC
ANNOVIM PLC
INTRODUCTION
Managers in Annovim Plc have to understand since the early 1980s a number of ‘innovative’ management accounting techniques have been developed such as activity-based techniques (costing, budgeting and management), strategic management accounting and the balanced scorecard. From the context of the assignment, each division is regarded as a profit centre, where the divisional managers of the three divisions i.e. candy bars, chews and other sweets will try to maximize profit in order to ensure that they obtain the minimum required profit margin to achieve their own goals of getting bonuses. So, managers of these divisions either mark-up their prices or improvements in financial performance by sacrificing investments in the materials used, on-time delivery or tweaking with the product mix. The other way, they will try to minimize costs either through reducing the direct and indirect costs relating to their divisions. There is a possibility that the marketing department may suffer from an overpriced product of candy bars, chews and other sweets since each division is a profit centre and tries to maximize their profit. As a result, organizational goals are ignored or overlooked.
ROLES OF MANAGEMENT ACCOUNTANT
Over the years, it is believed that ‘new’ techniques have been introduced to overcome a claim that ‘outdated’ management accounting practices had provided misleading information for planning, controlling, decision making and communication. The managers in Annovim Plc will have implement cost determination to ensure proper accounting and that transfer pricing will not result in disfavourable figures to their own departments. Cost determination at Annovim Plc across the three processes including mixing, cooking and packaging is one of the functions of