Management Accounting Report Cost Classification

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| 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…show more content…
An enormous speed of technology and great marketing techniques can be sometimes very seductive thus a good knowledge of enterprise 's financial situation provided by management accounting system support every purchase decision. 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.
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