Management accounting concepts and practices in the businesses
The TMA covers the management accounting concepts and practices in the businesses. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within units 1, 2, 3, 4 and 6 beside the supplementary material. This TMA requires you to apply the course concepts. The TMA is intended to:
Assess students’ understanding of key learning points within units 1, 2, 3, 4 and 6.
Increase the students’ knowledge about the reality of the Managerial Accounting as a profession.
Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.
Develop the ability to understand and interact with the nature of the managerial accounting tools in reality.
Develop basic ICT skills such as using the internet.
PART A: What Management Accountants Do?
Instructions:
1- Jobs for Management Accountants: Undertake a search for management accounting jobs on Google. List examples of positions that could be filled by management accountants.
2- Management accountants are often hired as consultants for a contracted period. List the most common roles that managerial accountants play.
3- Discuss in an essay form how financial and managerial accounting interface. Is one more important than another? Discuss the rationale for your answer.
4- Describe the personal characteristics you would need to be effective as a management accountant.
5- External Focus of Management Accounting: Historically, finance professionals have tended to concentrate internally within their organization and rather ignored the external environment. Strategic management accounting (SMA) has begun to change this emphasis and many of the techniques in your handbook have strategic management accounting elements. Describe three issues or concerns that have an external focus from the Management Accountants.
PART B
Cost Concepts and Classifications
a- Amer has a garage that was constructed at a cost of $8,000 several years ago. Amer decided to produce andsell surfboards in his spare time. Accordingly he can use the garage for construction purposes. The garage will be depreciated over a 20-year life. Amer has determined that each surfboard will require $60 in wood. He will hire students to do most of the work and pay them $70 for each surfboard completed. He will rent tools at a cost of $400 per month. Amer has drawn money out of savings to provide the capital needed to get the operation going. The savings were earning interest at 6 percent annually. An ad agency will handle advertising at a cost of $200 per month. Amer will hire students to sell the surfboard and pay a commission of $40 per board.
Required:
From the foregoing information/text, identify all the examples you can of the following types of costs (a single item may be identified as more than one type of cost)
b- “The easiest way to distinguish between relevant and irrelevant costs is by cost behavior; variable costs are relevant costs and fixed costs are irrelevant costs.” Explain why you do or do not agree with this statement.
Part C: CVP from Different Points of View
Assume that you are preparing a seminar on cost-volume-profit ‘CVP’ analysis for non-accountants. Several potential attendees have approached you and have asked why they should be interested in learning about your topic. They need to be guided and motivated. The individuals include:
1- A factory worker who serves as her company’s labor union representative in charge of contract negotiations.
2- A purchasing agent in charge of ordering raw materials for a large manufacturing company.
3- A vice president of sales for a large automobile company.
4- A director of research and development for a pharmaceutical company.
Instructions:
Write a small memo to each of the above individuals explaining the reasons why they should attend the seminar.
Answer preview for Management accounting concepts and practices in the businesses
Access the full answer containing 2300 words by clicking the below purchase button