Managerial Accounting and the Business Environment
Managerial accounting is concerned with providing information to managers- that is, people inside an organization who direct and control its operations. Managerial accountants prepare a variety of reports. Some reports focus on how well managers or business units have performed- comparing actual results to plans and to benchmarks. Some reports provide timely, frequent updates on key indicators such as orders received order backlog, capacity utilization and sales. Other analytical reports are prepared as needed to investigate specific problems such as a decline in the profitability of a product line. Operational excellence comes to The Diamond Business
An engagement ring purchased from Blue Nile, an internet diamond retailer, costs $5,200 compared to $9,500 if purchases from Tiffany & Co., a bricks-and-mortar retailer. Because the Blue Nile allows wholesalers to sell directly to the customers using its website, while diamonds change hands as many as seven times before being build sold to a customer. Blue Nile carries very little inventory and incurs negligible overhead. Bricks-and-mortar tie up large amounts of money paying for the inventory and employees on their showroom floors. Blue Nile generates a high volume of transactions by selling to customers anywhere in the world; therefore, it can accept a lower profit margin per transaction than local retailers, who complete fewer transactions with customers within a limited geographical radius. The work of Management and the need for Managerial Accounting Information Every organization- large and small- has managers. Someone must be responsible for formulating strategy, making plans, organizing resources, directing personnel and controlling operations. For example, Good Vibrations runs a chain of retail outlets that sells a full range of music CDs. The chain stores are concentrated in Pacific Rim cities such as Sydney, Singapore, Hong Kong. The company has...
The prologue describes important aspects of the contemporary businessenvironment. While there are no written assignments, you should be familiar with the major ideas as background for your study of managerialaccounting.
A. In many industries, a company that does not continually improve will find itself quickly overtaken by competitors. The text discusses four major approaches to improvement—Just-In-Time (JIT), Total Quality Management (TQM), Process Reengineering, and the Theory of Constraints (TOC). These approaches can be combined.
B. The Just-In-Time (JIT) approach is based on the insight that reducing inventories can be the key to improving operations. Work in process inventories (i.e., inventories of partially completed goods) create a number of problems:
1. Work in process inventories tie up funds and take up space.
2. Work in process inventories increase the throughput time, which is the amount of time required to make a product. If a company has two weeks of work in process inventories, then it takes two weeks longer to complete a unit than if there were no work in process inventories. Long throughput time makes it difficult to respond quickly to customers and can be a major competitive...
Task 1 : You are required to identify different types of market structure, and explain how market structure determine the pricing and output decision of business :
There are many types of markets:
* Perfect competition
* Monopolistic competition
Perfect competition can be described as competitive depends in part on how many suppliers are seeking the demand of consumers and with a new businesses can enter and exit a particular market in the long run. In a market economy, competition occurs between large numbers of buyers and sellers who vie for the opportunity to buy or sell goods and services.
Perfect competition exists when there are so many people in the market, and other conditions are such, that no-one can influence the price, all other things being equal.
Monopolistic competition is when a large number of firms sell closely related but not homogenous products. There are three ways:
* There are many buyers and sellers
* Entry and exit are easy
* Firms take other firms price as given
Oligopoly is when there are a few large suppliers, and business decisions affect each other.
Monopoly is a businessenvironment in which a single company, by controlling a specific supply of products or service, set prices, prevents other business from entering the market and controls the available supply of the product or...
Explain how the company will be managed so that it is seen to behave in a responsible way in relation to governance, finance, the environment and the wider society………………………………………………….………………………………5
IntrodutionThis report will talk about the vision and mission of the different type of the organization and what the strengths and weakness of these organizations. In the second section, I will describe the stakeholder which related our organization, and discuss objectives of the different stakeholder of the organization. I will layout some of them to deep analysis and demonstrate that effective judgments have been made and that an effective approach to the research has been applied. Last section will talk over the management of the company, how the vision and mission of the company to be going, that the company is running in a responsible way in relation to governance, finance, the environment and the wider society.
The purposes, perhaps stated as vision and mission, of three different types of other organizations
As the manager of the company, the role needs to finish many different jobs and responsibilities, organizing operating, managing and planning, etc. Each of the above tasks is critical to our business development and our company’s future. But in this meeting, what I want to declare mostly is that we...
...Q1: There are two different types of cost accounting systems: Job order cost systems and process cost systems. How does management decide whether to use a job order cost system or a process cost system in any given manufacturing situation? Explain.
Job order cost system is used in situations where many different products are produced each period. For example, a Levi Strauss clothing factory would typically make many different types of jeans for both men and women during a month. A particular order might consist of 1,000 stonewashed men’s blue denim jeans, style number A312. This order of 1,000 jeans is called a job. In a job-order costing system, costs are traced and allocated to jobs and then the total costs of the job are divided by the total number of units in the job to arrive at an average cost per unit.
Process cost system used in companies that produce many units of a single product for long periods. Examples include producing paper at Weyerhaeuser, refining aluminum ingots at Reynolds Aluminum, mixing and bottling beverages at Coca-Cola, and making wieners at Oscar Mayer. These are all homogeneous products that flow through the production process on a continuous basis. Because all units are the same, each unit produced during the period is assigned the same average cost. This costing technique results in a broad, average unit cost figure that applies to homogeneous units flowing in a continuous stream out of the production process.
Management accounting or managerialaccounting is the process of identifying, analyzing, recording and presenting financial information that is used for internally by the management for planning, decision making and control.In contrast to HYPERLINK "http://accountingexplained.com/financial/" financial accounting, managerialaccounting is concerned with providing helpful information and reports to internal users such as managers and entrepreneurs etc. so that they can control and plan the business activities. Few of the main areas, in which managerialaccounting is used are:Planning and Budgeting: Managers use managerialaccounting techniques to plan what to sell, how much to sell, what price is to be charged to reimburse the costs of production and also earn an optimal profit. Also they have to plan how to finance the operations and how to manage cash etc. This is very important to keep the business operations working smoothly. The HYPERLINK "http://accountingexplained.com/managerial/capital-budgeting/" capital budgeting and HYPERLINK "http://accountingexplained.com/managerial/master-budget/" master budget are the two important topics in this area.Decision Making: When managers have to decide whether or not to start a...
Businessenvironment refers to the combination of external and internal factors influence the organization of the operating conditions. There are several factors of the customer and the businessenvironment, such as suppliers, technology, law and government activity and the market, social and economic trends competitions and owner, is improved.
Task 1: The Contextual Environment:
1. a Identify the Purpose of Different Types of Organization:
There are different types of organizations in the business world. All organizations have grown different purposes. Aviation, telecom organizations, foods etc is the purpose of profit in a standard way socially. A not-for-profit service organization such as the University aim is to help all people without any profit. Such as clubs, labor unions, etc. The purpose of the organization of mutual benefit is to join together to pursue their own self-interest. The public welfare organization such as the police, fire service, provides services to all members of a given population.
Premier Food and Vodafone as the case may be, their main purpose is to maximize business and their profits by providing goods or services to their customers in order to maximize the wealth of your organization.
Input process output analysis...
...BTEC L3 90 Credit Diploma in Business
Unit 1 – The BusinessEnvironment
Learning Outcomes – on completion of this unit you should;
Know the range of different businesses and their ownership
Understand how businesses are organised to achieve their purpose
Know the impact of the economic environment on businesses
Know how political, legal and social factors impact on business
Task 1 – Submission Date 27/09/2012
You are working as a business journalist for the Express and Star newspaper which is planning to run a monthly feature article on local businesses. Produce an article on two contrasting businesses which operate in the local area, covering purpose, ownership, organisational structure and strategic planning.
You need to highlight what category the business comes under and provide some facts and figures to support your claim. The options available include;
Local, National, International, Global, Public, Private, Not-for-profit, Voluntary, Primary, Secondary, Tertiary
Why does the business exist?
Does the business have a mission statement?
How was the business started? How has it grown?
What is the businesses core activity?
Does the business have any secondary activities?
Identify the following;
Public or private...