APC 309: Strategic Management Accounting

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APC 309 Strategic Management Accounting Manac plc Case Study Contents Executive Summary 4 Pricing Models 5 Cost-Plus Pricing 5 Accounting Systems 8 Standard Costing 9 Advantages and Disadvantages of Standard Costing 11 Activity Based Costing 12 Differences in ABC vs. Absorption 13 Works Cited 17 Executive Summary Manac plc is a company that manufactures a product mix that consists of mainly electrical goods. The company operates internationally and sells its products in markets in a number of countries. Due to current challenges that the company is facing, it has been suggested that the company take a look at the pricing and accounting systems it uses to ensure that these systems are supporting its organizational objectives. Currently the company is utilizing standard and absorption costing and these systems also support the managerial accounting systems at the company. This report will provide an overview of the current pricing and accounting systems that the company is using as well as a discussion about some of the advantages and disadvantages of alternative systems. Pricing Models Pricing models can be a complex aspect of strategic management. If the prices are too high then clients may look to other vendors to fulfill their demand. However, if prices are too low then the company will have lost revenue and potential profitability. Therefore to find the ideal pricing level it requires a great deal of balance and can be as much of an

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