Management Accounting Report

Good Essays
TO : THE CHAIRMAN OF THE COMMITTEE
FROM : THE MANAGEMENT ACCOUNTANT OF THE COMMITTEE
DATE : 5TH JULY 2008
SUBJECT: FEW METHOD OR TECHNIQUE IN THE MANAGEMENT ACCOUNING CAN BE USE TO SOLVE THE MAJOR CRISIS FACING IN THIS COMPANY.

Nature of the company’s business

Rank Strategy Sdn Bhd (RSSB) was incorporated in Malaysia as a private limited company on (30th September 1996) under the Companies Act, 1965. The company’s principal activities are interior design, construction works and manufacturing base for future expansions.

RSSB specialized in Decoration Works and Turnkey Renovator Works for Offices, Restaurant, Hotels, Banks, Residential, Clubs and Resorts & Custom-made Built-in Wardrobe, Kitchen and Office Furniture.

Crisis / Problem In the first half year of 2008, this company facing a major financial problem. This company has limited fund resource to accept profitability project, to investing capital expenditure to expand their business and to employ skills workers to efficient the productivity. This problem was due to the lack of control and unconcern on the budget.

The receipt of sales was based on the percentage of the project’s work done and the contract life is 1 year. More than 80% sales are receives in few months later. The cash inflow might not enough to cover the cash outflow, because some project could be taken up to 3 months to complete. Furthermore, 50% of the purchase and sub contract was incurred during the project period. And some of the expenses were not properly spent.

At the meantime, the company manager decide to tender an interior design project in Subang Jaya, the contract sum is RM 1,640,000 (Ringgit Malaysia : One Million and Six Hundred Forty Thousand Only). If the company got the Letter of Award for that project, the project may start at the end of August 2008. This project will taken 2 months to complete. Then, the company has to make sure they have enough funds

You May Also Find These Documents Helpful

  • Good Essays

    project management, manufacturing, research and development, environmental specialists, oil and gas and several business functions. This is a reflective report in which case study of Fennel Design Project of Laura Watson company is used to predict the demand of greeting cards. The aim of the report is to speculate the situation of the Fennel Design project and also to provide a base for the companies experiencing these situations. This report uses discrete data of continuous range In this report discrete…

    • 616 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    purposes. This report provides the review of the costing system computed using the excel spreadsheet using the Overhead Absorption Costing Method. Recommendations are to increase profits so that there will be a greater profit margin for the business. 1.0 Introduction As an active player in the industrial sector, Super Glove Ltd should incur different types of indirect costs. Therefore it is crucial to allocate the costs…

    • 1357 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Accounting &Financial Management Report From: Mo Jian hui To: Board of director Executive summary According to the Global Powers of Retailing Report in 2011, Ahold now lies at the number 25 of world. It is making the plan to achieve the goal to be No.10 by acquisition Delhaize Group (DG) or WM Morrison Supermarkets Plc. (Morrisons).This report will analyze and compare these three companies by using CORE to find out their advantages and disadvantages of financial performance, then…

    • 4482 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Management Accounting

    • 1855 Words
    • 8 Pages

    Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands…

    • 1855 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Management Accounting

    • 1939 Words
    • 8 Pages

    Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organizing, ->resourcing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management…

    • 1939 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Management Accounting

    • 562 Words
    • 3 Pages

    Overall requirement * Explain how management accounting can supply information to assist the management of the organisation. * You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). * You are to write a 1500 word report as though you were a management consultant writing to the board of directors. * WE DO NOT WANT ANY NUMBERS UNLESS YOU CREATE THEM TO DEMONSTRATE AN IDEA * This is like assessment 1a –…

    • 562 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Management Accounting

    • 1788 Words
    • 8 Pages

    Management accounting provides necessary information to assist management in decision making and management control. The chartered institute of management accountants (2001) describe Management accounting as :-the application of professional information in such a way as to assist the management in the formation of policies and in the planning and control of the operations of the organization. Management accounting has been considered as an integral part of the management knowledge in accounting and…

    • 1788 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Management Accounting

    • 344 Words
    • 2 Pages

    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:…

    • 344 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Management Accounting

    • 1323 Words
    • 6 Pages

    MANAGEMENT ACCOUNTING 1. The group is required to undertake a project on a management accounting topic related to the course (refer attachment). The objective of the project is to provide students an opportunity to gain an in-depth knowledge of the theoretical underpinnings of one of the management accounting topics and to summarize any current articles of the topic (the chosen articles must be accepted by your lecturer). 2. The group projects may be done in groups of at most five…

    • 1323 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Management Accounting

    • 14064 Words
    • 57 Pages

    MODULE 1 Management Accounting Module 1 Management Accounting Objectives Aim To provide an understanding of the nature of management accounting and its role in the process of managing and controlling the enterprise. Key Concepts ▪ Management accounting ▪ Management control ▪ Decision making Learning Outcomes By the end of this section you should be able to understand: ▪ The purpose of management accounting ▪ The concepts and processes of control. The…

    • 14064 Words
    • 57 Pages
    Powerful Essays