You are the senior management accountant for Magnum Ltd. A junior management accountant (MA) has joined the firm. Required; How would you explain to the junior MA the impact of the business environment in on management accounting as compared to the early years of management accounting? (You are to give Five (5) factors of 100 words each with expiation for the impact )
homework;
Q1
You are the senior management accountant for Magnum Ltd. A junior management accountant (MA) has joined the firm.
Required;
- How would you explain to the junior MA the impact of the business environment in
on management accounting as compared to the early years of management accounting? (You are to give Five (5) factors of 100 words each with expiation for the impact )
(HINT : Your explanation should demonstrate to the junior the importance of environmental impact on the business and therefore its success and sustainability.
Q2 The new focus in management accounting is customer satisfaction.
Consider the above statement and discuss the key factors that a management accountant must emphasize and concentrate on for the success of his organization.
(You are to give Five (5) factors of 100 words each ).
(HINT : Your explanation for each of the factor should demonstrate the connection between customer satisfaction and success of the business.
Q3. Alex Company has decided to manufacture a new product. The following information is given for your analysis:
Direct materials cost for the new product will total $50 per unit. It will be necessary to hire a supervisor to oversee production. Her salary will be $3 000 per month. Workers will be hired to manufacture the new product, with direct labor cost amounting to $30 per unit. It will be necessary to rent space in a warehouse nearby in order to store finished units of product and raw materials. The rental cost will be $2,000 per month. In addition, the company will need to rent equipment for use in producing the new product; the rental cost will be $4,000 per month. The company will continue to depreciate the building on a straight-line basis, as in past years. Depreciation on the manufacturing machine is $12,000 per year.
Advertising and promotional activities costs for the new product will total $80,000 per year. Costs of shipping the new product to customers will be $10 per unit. Electrical costs of operating machines will be $2 per unit. Alex will need to employ a new
Required:
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Product Costs |
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Name of the cost |
Variable Cost |
Fixed Cost |
Direct Material |
Direct labor |
Manufacturing Overhead |
Period Cost |
GUIDE NOTE: List the different costs associated with the new product decision down the extreme left column (under Name of the Cost). Then place an X under each heading that helps to describe the type of cost involved. There may be X’s under several column headings for a single cost. (For example, a cost may be a fixed cost, a period cost; you would place an X under each of these column headings opposite the cost.) NO CALCULATION IS REQUIRED.
- Your essay requires a minimum of 5 quality references and maximum 8 (e.g. books, online articles, news reports, academic journals, and )
- Use Harvard Referencing and ensure that in text citation is
- Word length: 1000 +/- You are required to state the number of words used on the cover sheet. The essay submission must include the following in the order of:
- Executive summary
- Essay ( introduction, body & conclusion)
- List of references
- Any other information like statistics to support your views.( excluding (1000 -1200 words)
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Q2 The new focus in management accounting is customer satisfaction.
Consider the above statement and discuss the key factors that a management accountant must emphasize and concentrate on for the success of his organization.
(You are to give Five (5) factors of 100 words each ).
(HINT : Your explanation for each of the factor should demonstrate the connection between customer satisfaction and success of the business.
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