Management Accounting Information For Resource Management And Schedules Of Cost Of Goods Manufactured And Sold

Types of Management Accounting Information

Management accounting information for resource management:

Management accounting information:

As being the management accountant for close up and personal, the following management information must be needed by the manager of outlet, design team, marketing manager and contract managers:

Manager of retail store:

Manager of all 6 retail stores must required information about the monthly sales, monthly expenditure, fixed and variable expenditure, salary, wages, depreciation etc. It would help them to manage the stores and make the better decisions about the growth of the retail store.

Manager of design team must required information about the monthly sales, monthly expenditure, fixed and variable expenditure, consumer demand etc. It would help them to manage the designs and control over the expenditure accordingly (Brealey, Myers and Marcus, 2007).

Marketing manager:

Manager of marketing department must required information about the advertising budgets, fixed and variable expenditure over the marketing plans etc. It would help them to manage the growth and make the better decisions about the growth of the retail store.

Contracts manager:

Manager of contract department must required information about the price of raw material, required raw material etc. It would help them to manage the cost and contract from the outside suppliers accordingly (FIRRER, 2012).

Explanation:

It has been found that the manager of the company wants to enhance the operation of the company. It has been analyzed that the main vision of the company is to enhance the fashion trend in the industry. Through market analysis, it has been found that if the manager makes the best of the strategy for the company after analyzing the market condition than surely, company would be able to enhance its business operation (Davies and Crawford, 2011).

It has been found that planning strategy is significant for every company to make the best decisions in concern of enhancing the business operation of a company. In this company, the main vision of the company is to enhance the fashion industry so company could work on this vision to enhance the sales and revenue of the company (CORRERIA, 2013). This will not only enhance the short term devolvement of the company but would also help the company to enhance its market more.

Que 2)

Schedules of cost of goods manufactured and sold; income statement:

Que 3)

Cost behavior; engineered cost; committed and discretionary costs: manufacturer:

Variable cost: variable cost is those cost which get varies with the production level. In this case, cost of fabric, cost of ink, wages, depreciation, electricity cost, packaging staff wages etc are the variable cost. Engineered cost is the cost where production could be quantitatively calculated. Here, depreciation, cost of fabric, cost of ink, wages, packaging staff wages all are engineering cost as they are related to production level of the company.

Fixed cost: fixed cost is that costs which do not get vary with the production level. In this case, advertising cost, salary, rent, maintenance cost, advertising sign, cost of car etc are the fixed cost.

Discretionary cost center depends upon the budgetary performance which is based on many objectives to operate within already determined cost constraint that is set by the manager whereas committed cost depends upon maintaining and establishing business readiness. Here, movie tickets cost, salary, rent are the discretionary cost whereas advertising, movie tickets cost etc are committed cost.

Que 4)

Cost of goods manufactured; over applied or under applied overhead and journal entries:

References:

Brealey, R., Myers, S.C. and Marcus, A.J., 2007. Fundamentals of Corporate Finance. Mc Graw Hill, New York.

CORREIA, C. et al. 2013. Financial Management. 7th Edition. Cape Town: Juta andCompany Ltd.2.

Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson.

FIRER, C. et al. 2012. Fundamentals of Corporate Finance. 5th Edition.Berkshire.McGraw-Hill Companies, Inc.

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