Management Accounting Report Cost Classification

2913 Words Nov 6th, 2012 12 Pages
| Jupiter LTD. |1 |
| |Email: jupiter@ltd.com |

JUPITER LIMITED

Management Accounting Report

Prepared for:
Jupiter Ltd. Chief executive officer

Prepared by:

Date: April 03 2012

TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

THE ROLE OF MANAGEMENT ACCOUNTING 3

CLASSIFICATION OF COSTS 4

INVENTORY VALUATION METHODS 7

RECOMENDATIONS 11

Bibliography 12

Jupiter Ltd.
Management Accounting Report

EXECUTIVE SUMMARY

1

2

This report discusses in detail the management accounting in
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Fallowing functions might:

Planning functions: Can support a decision and reduce a risk. Might answer a question about selling a particular dishwasher. Is it profitable or not.
Control function : It showing a difference between a goals and real profit. It might trace to who or what is responsible for a particular situation. It can show on which days business operate its best.
Organizational function: Help to organize a business for a best performance possible It's very useful in resources allocation. Can assist in decision to which department transfer the most founds.
Communication function: Help to reduce lack of communication between a management and labours. Can encourage a sell department to achieve a better results.

As it's shown above a management accounting system is a crucial and often enough irreplaceable part of modern business. Besides the fact that it help with good controlling of business it create a meaningful information and help with decision process of every level of management as well.

CLASSIFICATION OF COSTS

COSTS

One of methods of supporting a small to medium businesses are a bank loans. In order for a business owner to take such a credit, he or she must know how much it is needed. A amount of money which is sum up from fixed , variable and semi variable cost create a total cost. A fixed costs , according to CIMA