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Management Accounting Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals.
Management Accounting - Cost Classification COST CLASSIFICATION ASSIGNMENT To classify the various costs would first of all require a definition between the two
strategic management accounting What is Strategic Management Accounting? And why, Strategic Management Accounting? Simple definition: Management Accounting in the
Managment Accounting, Financial Control, Management Control, Strategic Management Accounting (Sma) Introduction: To better understand differences between many similar
MANAGEMENT CONTROL IN A BUSINESS NETWORK: NEW CHALLENGES FOR ACCOUNTING MANAGEMENT CONTROL IN A BUSINESS NETWORK: NEW CHALLENGES FOR ACCOUNTING BY DR. ROLAND BARDY
Submitted by Missy21 on August 3, 2008
Category: Business
Words: 397 | Pages: 2
Views: 72
Popularity Rank: 113,646
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There are many different areas of accounting. Managerial Accounting is one of the many branches of study. Managerial Accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization’s goals. Using the data collected from this analysis helps a business make better decisions and smarter ones by measuring all of the financial information.
Fixed costs are costs that do not change as sales activity go up and down and Variable costs are costs that vary with the level of output. In the case of the assignment, Item 1 Raw Materials is the variable costs because the cost of livestock depends on supply and demand. And Item 2, Building Rent is fixed because there usually is a lease contract and is locked for a block of time, example 5 year lease. Therefore the cost for the rent will not vary from month to month.
In this assignment we are running a restaurant that serves hamburgers. As I described earlier the meat is the variable costs and the building rent is the fixed cost. In the below chart I have calculated the annual cost and the cost per unit if our restaurant was to sell 1000, 6000, and 8000 units:
1000 units sold Annual Cost Cost per unit 6000 Units Sold Annual Cost Cost per unit 8000 Units Sold Annual Cost Cost per unit
Raw Materials $650.00 $0.65 Raw Materials $3,900.00 $0.65 Raw Materials $5,200.00 $0.65
Building Rent $9,000.00 $9.00 Building Rent $9,000.00 $1.50 Building Rent $9,000.00 $1.13
As you can see that since the building rent is a fixed cost it will remain the same however the raw materials varies depending on the number of units sold as it is a variable cost. Since accounting has a broad base of uses it is the core of all businesses; if a business does not have good accounting of their products, services, and income then the business will falter. External accounting has to do with profits; where internal accounting...
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