Management Accounting for Business

Questions: 1. Discuss the importance of management accounting for your selected organisation and differentiate between management accounting and financial accounting.2. Evaluate different classifications of costs (types, behaviour, function and relevance) with examples.3. Explain the meaning of variance analysis and discuss the most commonly derived variances, outlining the problems and limitations.4. Identify different operational budgets and explain the advantages of preparing different operational budgets. Answers: Introduction Management accounting is a part of accounting but this particular section deals with the accounting related to the management (Bhattacharyya, 2011). Therefore, management accounting is the systematic process of developing management reports and accounts, which represent the statistical and financial information of an organization in a simple and precise manner (Bhimani, 2012). The main aim of this report is to improve operating efficiency of Jaguar Land Rover Automotive Plc, the manufacturing company of the UK by controlling cost and improving profitability. 1. Management Accounting Importance of Management Accounting Within the organization Jaguar Land Rover Automotive Plc, management accounting is an important factor because the particular company is having a complex business as it deals with automotive designing, development, manufacturing and sales of the vehicles. Therefore, systematic management planning is required for the company. Management accounting helps to gather systematic information to assist the managerial investigation, evaluation and verification of the functions of each division in order to take decision and to accomplish the goals of the particular company (Groot and Selto, 2013). Management accounting also helps the managers of the company to accomplish corporate objectives. The other reasons for practicing management accounting within the organization Jaguar Land Rover Automotive Plc are it helps to recognize the financial condition of the company and also reports for directing, controlling, motivating, planning and performance evaluation. Differentiation between Financial Accounting and Management Accounting The management accounting and financial accounting both are the part of accounting but serves for different purposes. Management accounting presents the internal data of an organization, whereas, financial accounting is for external purpose that is for the stakeholders of the company. Financial accounting is a precise factor but is adhered to Generally Accepted Accounting Principles (GAAP) and plays important role for potential and current investors. On the other hand, management accounting is based on estimate or guess as exact data remain unavailable to the managers during the time of decision making and this type of accounting also helps managers to make future and current financial decisions (Epstein and Lee, 2015). 2. Classification of Costs Based on Types On the basis of types, the costs can be mainly classified into direct cost and indirect cost. The cost that is directly related to the production of goods and/ or service is called direct cost. For example, labor cost, material cost, expense and distribution cost as all these costs are associated with production. On the other hand, indirect costs are the costs that are not directly related with the production of goods and/ or services and this cost cannot be easily identified for a particular product, activity, department and project (Drury, 2012). For example, the company Jaguar Land Rover Automotive Plc has manufacturing area, where the cars are manufactured. The electricity that is used to power the entire manufacturing area is considered as indirect cost. Based on Behavior On the basis of the behavior, the costs can be classified in to fixed cost, variable cost and semi-variable cost. The fixed cost does not vary with the numbers of goods produced and is associated with cost accounting. For instance, Jaguar Land Rover Automotive Plc leases a machine for manufacturing cars and it has to pay $3000 per month with the aim to cover the lease cost. This lease payment is considered as fixed cost. Similarly the cost that depends on the quantity of production is termed as variable cost. Therefore, when the production of Jaguar Land Rover Automotive Plc increases, the variable cost also increases and vice-versa. For example, cost incurred for designing cars is a variable cost as this cost increases with the increased production of cars and vice-versa (Horngren, 2011). Lastly, semi-variable costs are the costs that lie between the fixed costs and variable costs. For example, the electricity company charges $300 per month for electricity service and then it charge s $0.015 per kilowatt. Thus, the cost of electricity bill is a semi-variable cost. Based on Function On the basis of function, cost is of four types production, administration, selling and distribution, RD. The cost that is related to production is production cost, like cost of production of cars. The office expenses, warehouse expenses and other costs related to regulation of the business is termed as administration costs (Horngren and Horngren, 2012). The costs like advertising, sampling (test drive) that are related with the selling of the products (cars) are termed as selling and distribution expenses. Jaguar Land Rover Automotive Plc researches to develop new type of cars of various models. The costs incurred for this is termed as RD costs. Based on Relevance On the basis of relevance, the costs are of three types - avoidable costs, opportunity costs and incremental cost. The costs that be avoided with the refusal of the implementation of the particular decision are called avoidable costs. For example, the company might decide to open another plant for manufacturing, if this decision is not implemented in real then all the costs associated with buying plot, construction of plant can be avoided. Opportunity cost is the expense that one can incur for one purpose only or for the next best alternative and that cannot be invested in other project. Incremental cost is the expense where various alternatives are considered. 3. Variance Analysis Meaning of Variance Analysis Variance analysis is defined as a quantitative investigation of difference between the planned behavior and the actual behavior (Eldenburg, 2011). This particular analysis is used to control and maintain the business. It can easily be explained by an example the budget for sales of cars is $20000 and lastly it seems that the actual sales of cars took place is $18000. Therefore, the variance is $2000. The variance analysis is primarily effective at the time of review of the variance amount as per a trend line such that the changes in the level of variance from one moth to another are readily apparent. Variance analysis also includes the investigation of the differences of these, whose outcome is the difference from expectation. Types of Variance Analysis There are various types of variance analysis, but the most commonly derived variances that are generally used in all businesses including in the manufacturing companies like Jaguar Land Rover Automotive Plc, are material variances, variable overhead variances, and labor variances and fixed overhead variances (Jaguarlandrover.com, 2016). Material cost variance is defined as the differentiation that takes place between the cost of direct materials that is considered as the standard and are specified for the achieved output and the real cost of the materials that are considered as direct. The material cost variance (MCV) is determined from the differences between quantities of material allowed and the quantities consumed for the production (Drury, 2012). It is the differentiation between predetermined and the actually paid prices. Mathematically, the material cost variance is represented as: MCV = (SQ x SP) (AQ x AP) Where, AQ represents Actual Quantity, AP represents Actual Price, SQ represents Standard Quantity for the actual output and lastly, SP signifies Standard Price. Materials Price Variance (MPV) represents the difference between the price at which the raw materials are purchased and the raw materials average price. It is mathematically represented as: MPV = (Standard Price Actual Price) x Actual Quantity It is considered as unfavorable at the time when definite price paid for raw materials exceeds predestined standard price. This is used for calculation during the purchasing of materials rather than during the use of the materials. MPV helps in corrective action and performance management (Horngren et al., 2012). The material quantity variance (MQV) is the definite quantities of materials which are utilized in production of goods and vary from standard magnitude. It is mathematically represented as: MQV = (SQ for actual output AQ) x Standard Price It is considered to be favorable when the use of definite magnitude of direct raw materials is lower than standard magnitude. The material mix variance (MMV) occurs at the time during which raw materials are not used in producing products used in the standard formula of accounting (Young, 2012). It is mathematically represented as: MMV = (Revised Standard Quantity AQ) x Standard Price Labor cost variance (LCV) identifies the differentiation that takes place between the standard direct wages and the real direct wages paid specially for the output received. Mathematically, it is represents as: LCV = (SH x SR) (AH x AR) Labor rate variance (LRV) is the differentiation of the actual fee that is paid to labor and the specified standard price of labor. It is mathematically represented as: LRV = (Standard Wage Rate Actual Rate) x Actual Time This is considered as unfavorable at the time during which actual rate of wage paid go above the prearranged standard fee of wage. Labor efficiency variance (LEV) is defined as the time taken relative to the specified standard time for work performance (Horngren et al., 2012). It is mathematically represented as: LEV = (SH for actual output AH) x Standard Rate. It is considered to be favorable at the time during which real hours are relatively lower than allowed average hours. Thirdly, Variable Overhead Variances is the differentiation that takes place between the real variable overhead that incurred and that variable overhead that is considered as the standard. It is mathematically represented as: Variable OH Cost Variance = Standard Variable OH on actual production Actual variable OH Lastly, the differentiation that takes place between the absorbed or recovered average overhead for definite productivity and fixed overhead that is actual is termed as Fixed Overhead Cost Variance. It is mathematically represented as: Fixed OH Cost Variance = (Recovered or absorbed Fixed OH) (Actual Fixed OH) Problems and Limitations of using Variance Analysis The main problems of using variance analysis by the company are: Firstly, the variance analysis is a time consuming factor as this analysis needs a one month time. However, the management requires the information much faster for decision making, thus this type of analysis is generally avoided by the managers (Epstein and Lee, 2011). Secondly, the reasons for variances cannot be identified from accounting records (Drury, 2013). Thus, the managers have to search for information in bills of materials, overtime records. This extra work is cost-effective. Lastly, as variance analysis is a comparison of arbitrary and actual results, the resulting variance might not defer any useful information. 4. Operational Budgets Different Types of Operational Budgets Operating budget is defined as a statement that represents the financial plan of an organization during period of budget and reflects the operating activities of the business that is expenses and revenues. The types of operational budgets are revenue, expense and profit budgets. Expense budget represents the expected expenses at the time of budget period (Seal et al., 2012). In this type of budget, three types of expenses are evaluated; these are fixed, discretionary and variable expenses. Revenue budget determines the revenue required by the firm and it also projects the amount of future sales. Profit budget is the combination of both revenue and expense budgets into a single statement that indicates the net and gross profits. Advantages of Preparing Different Operational Budgets The primary advantages of preparing various kinds of operational budgets are firstly, the different types of budgets help the managers to keep a track of record of total expenses, total revenue and the profit earned by the company. Secondly, the different types of operational budgets help to establish financial accountability and reduce the probability of losing the aim of the organization (John Y. Lee., 2012). These budgets help the managers to take decision as all the data are readily available. Thirdly, confusion reduces and the accounting becomes more transparent and simple. Lastly, the future expenses of the organization can also be projected easily and thus helps in decision making. Conclusion Therefore, it can be concluded that, in every organization including Jaguar Land Rover Automotive Plc, management accounting is applied in order to collect systematic information of the organization. This assists the managerial investigation, evaluation and verification of the functions of each division in order to take decision and to accomplish the goals of the particular company. Depending on the industry to which a particular company belongs to, the various types of costs and variance analysis are applied in order to make the operation of the company easier. Recommendation Thus, it can be recommended that the company should employ management accountant in order to make the operations of the company easier. It is not necessary to implement all the types of variances in an organization. For instance, it can be recommended that the organization Jaguar Land Rover Automotive Plc, should implement the purchase price variance as the particular company belongs to the manufacturing industry and this specified company is in a highly competitive market. Similarly, it is not necessary to implement all types of costs within the organization; rather based on the operations of the organization the costs should be calculated. References Bhattacharyya, D. (2011).Management accounting. Noida, India: Pearson. Bhimani, A. (2012).Management and cost accounting. Harlow, England: Financial Times/Prentice Hall. Drury, C. (2012).Management and cost accounting. Andover: Cengage Learning. Drury, C. (2013).Management accounting for business. Andover: Cengage Learning. Eldenburg, L. (2011).Management accounting. Milton, Qld.: John Wiley Sons. Epstein, M. and Lee, J. (2011).Advances in management accounting. Bingley, UK: Emerald. Epstein, M. and Lee, J. (2015).Advances in management accounting. Bingley, U.K.: Emerald. Groot, T. and Selto, F. (2013).Advanced management accounting. Harlow, England: Pearson. Horngren, C. (2011).Introduction to management accounting. Upper Saddle River, N.J.: Prentice Hall. Horngren, C. and Horngren, C. (2012).Management accounting. Toronto: Pearson Canada. Horngren, C., Datar, S. and Rajan, M. (2012).Cost accounting. Upper Saddle River, N.J.: Pearson/Prentice Hall. Horngren, C., Harrison, W. and Oliver, M. (2012).Accounting. Upper Saddle River, N.J.: Pearson Prentice Hall. Jaguarlandrover.com. (2016).English | Jaguar Land Rover Corporate Website. [online] Available at: https://www.jaguarlandrover.com [Accessed 30 Mar. 2016]. John Y. Lee., (2012).Advances in Management Accounting. Emerald Group Pub. Seal, W., Garrison, R. and Noreen, E. (2012).Management accounting. London: McGraw-Hill Higher Education. Young, S. (2012).Readings in management accounting. Boston: Prentice Hall.

The Ugly Side of Essay Topics on Hamlet

The Ugly Side of Essay Topics on Hamlet Odds are that someone has already written something on the topic that you wish to explore. Nowadays, it feels far more disposable to me. When there is, draw on it to make an intriguing topic. Life (Source) doesn't force. Suicide is a significant theme in Hamlet. Death is the pervading subject of the play. Although it's a conclusion, it shouldn't be too repetitive. Also don't forget that oxymoron is an extreme kind of epigram. You have to come across good evidence to strengthen your ideas in addition to examples to illustrate the evidence. Write down every small thing which you think will be handy for the research paper. It is very important to get started with demonstrating the most important idea of the entire piece so you and your readers are going to be on the identical page. Together with taking notes, it can be very helpful to buy a study guide. If you'd like to observe some examples, please look at our site. What to Expect From Essay Topics on Hamlet? Hamlet is portrayed without an established position in society along with in his private life. Hamlet gives us the opportunity to pose many questions regarding the morality and personality that every character displays. By that Hamlet means he will make his soul impure and lose his odds of visiting heaven. Hamlet states a great deal of what he is feeling within this soliloquy that's actually emotions which are far worse than the ones that happened in Act 1. When you work on a sheet of literature in a course, such as Hamlet, as an example, instructors ofte n ask you to do a literary analysis of the said work. Hamlet might be a masterpiece of literature, but that doesn't mean your students can't question its content also. Consequently, students may think of different thesis for unique themes to compose essays on hamlet. At times it only looks simple, but a great deal of students forget about the kind of academic writing they need to stick with. Consequently, morality is a topic that can result in argumentative statements that must be defended by the student. Whatever it is, you will be asked to use your analytical abilities, critical thinking, and understanding of literature concepts to be able to compose an outstanding paper. You need to be able to comprehend and determine all types of figurative language. You could possibly be requested to demonstrate the way the figurative language contributed to the tone. Definitions of Essay Topics on Hamlet Warm up, write about anything you need to. There are a lot of stories that don't fit in the monomyth in any respect. Often it is two novels or two short stories, but nevertheless, it is sometimes a whole slew of different things also. The ghost may be a devil. Dramatic illusion subsequently becomes a metaphor for the real'' world away from the Globe, which is just as fleeting. Then in order to come back home 20there are still a good deal of things we will need to clean up. The look of Pridelands reflects the core of Scar. Friends, mind cannot go there. The Unexpected Truth About Essay Topics on Hamlet Identify the 3 revenge plots in Hamlet, and explain why each is significant to the growth of the play. Both princes are only sons and don't have any siblings. Hamlet's melancholic attitude and Ophelia's madness are just a couple of the topics often touched upon, so there is lots of research material that is available to you. Describe the sort of king Claudius is. Conclusion In conclusion, Macbeth isn't the normal Shakespearean play. Hamlet's corruption originates from the influence of different characters in the play. In contrast, Scar's selfish character is very similar to that of Claudius. The significance of Hamlet's remark is the fact that it shows how much he's changed since the very first half of the play. All About Essay Topics on Hamlet The state of the country in Denmark is deteriorating. The cultural impact owing to his work still continues, centuries after he's gone. A couple hours in the morning I used to spend on fan-fiction became time to compose articles which didn't have to be published below a fannish pseudonym. In the play there are varied themes like the representation of the country.

Good Research Paper Topics

Good Research Paper TopicsGood research paper topics are important for you to choose. Your topic should be interesting and the topic should be a topic that you have no problem writing. Here are some ideas that you can use to help you decide on your topic for your research paper.Econometrics has been used for many years by people who have a PhD in economics and those who are researching in other related fields such as statistics, marketing, business, management, etc. The term itself means that it deals with research methods and statistics. Econometrics can be used for many different things from market research to budgeting. It can be used to help get information and analysis from a variety of sources.Econometrics has a number of uses. One reason that is given for this is because it is cost effective. Another reason is that it provides for a lot of flexibility because the data can be manipulated as well as the findings can be very reliable. There are also many different types of econom etrics and the number of types of this topic has grown in recent years.So what are some good research papers that are econometrics related? A good example is consumer surveys. These are the most common forms of econometrics and they have many different uses including research on consumer behavior, customer satisfaction, surveys of brand name products, and surveys of the economic growth of the company. These are all examples of where econometrics can be used.What are some examples of econometrics that aren't necessarily related to consumer surveys? There are many different types of econometrics and the reasons why are many. An example is the use of these types of data for researching products, services, or companies. Some types of econometrics that are related to studies and information use. The type of econometrics that is used in these fields is called econometrics applied to public policy. This is research that has an effect on policy, government or other areas that affect public policy. There are many different fields that have different types of this type of research.A good example is project finance. This is research that is used to find the best investment opportunities that could be made with a certain amount of funds and the profit that could be made if they were invested. One thing to remember about this type of research is that there are many options that can be researched on, so it can be difficult to research on everything that is available.Econometrics is not just about statistics and economic statistics. The information that you get from econometrics can be very informative.

All My Life for Sale Essays

All My Life for Sale Essays All My Life for Sale Essay All My Life for Sale Essay The Life of EBay In the essay â€Å"All My Life for Sale†, John Freyer explained how he sold all of his possessions in his apartment to move out for college. Those items had some sort of sentimental value to people who purchased them and gained a vague relationship with them. One way he expressed himself, is when he sold his first wave of objects on eBay. He asked the highest bidders if they could update him on how his things were doing. He wondered if his buyers were taking good care of his things. Freyer is the type of person who would hold on to things hoping they would get used or fixed one day. He got a community started on his website allmylifeforsale. com. Over time, Freyer started to receive messages containing photographs about the stories from people who were a part of the project. He also requested if people could send him their address so he could come and visit. Not too long after, an invitation from the person who purchased Freyer’s salt shaker invited him to their house in Portland, Maine. The six thousand dollars that Freyer made from his selling his things helped him start his journey to visit people all over the country by car. â€Å"As I met more people, the awkwardness of meeting strangers started to wear off†¦ Some may say too comfortable†¦ I would help myself to food in the high bidder’s refrigerator without a second thought† (85) He started to think they were more than just strangers. For example, he acted like a kid who walks into his parent’s fridge to get something to drink. Soon after September 11, Freyer starts to mature. I stopped caring so much about the objects that I was visiting and started caring more about the people who invited me†(86). This personifies that he is growing up in a sense that he is paying attention to the things that really matter in this world. â€Å"Although I hadn’t made it to everyone who had invited me to visit, I knew that it was time to stop driving. †(86) Freyer started to realize that everything was in good hands and he should start worrying about himself. He wanted to set his priorities straight. He had to graduate college.

Extended Writing of an Argumentative Essay With a Lively Essay

Extended Writing of an Argumentative Essay With a Lively EssayExtending a logical argumentative essay with a lively essay will never be the same as reading it. Writing a persuasive essay is not easy. It can be made to appear less difficult by following some easy methods.The first step in engaging with the audience, creating a more intelligent presentation, is to choose the words carefully. The reader must be able to understand your argument. If the language is not clear and if you forget something important the reader may never get to the end of your argument.Use these two rhetorical techniques when you are writing your essay. A rhetorical device is an answer that evokes a response. A response will be used to convince the audience that your answer is correct. For example, if the audience were to respond, 'yes, but how?'This would be a cliche. Therefore, you use a rhetorical question. 'But how?'This question will become more powerful if the reader can also answer, 'Why?' and 'What mak es you think that?' If you can make this point through the main thrust of your argument, you have gained an advantage.A rhetorical question works when you find that there is more to be said than can be said in a logical conclusion. When this happens the conclusion is secondary.A good question can sometimes make the reader believe that you are speaking directly to them and they can go on to form a strong bond. The more people you speakto after this effective question, the more you will begin to appreciate that you have a strong communication tool to apply in your arguments. By developing a relationship with the audience you can make your arguments stronger and more convincing.So, when you are extending a persuasive essay, create the perfect rhetorical question to communicate your ideas. When you use this technique, you are extending your writing to your audience. In doing so, your readers will take your ideas seriously and they will be compelled to use their own minds to form an opin ion.

Some Features That Make Microsoft Word Essay Writing Tool A Must For College Students

Some Features That Make Microsoft Word Essay Writing Tool A Must For College StudentsMicrosoft Word Essay Writing Tool is an ideal, reliable and effective essay writing software for students who are looking for essay writing assistance. This particular software is of such a quality that it works with any word processing program. Besides, it is specifically designed to help students do effective homework. It has an excellent degree of flexibility which allows it to be used as per the student's needs.Microsoft Word Essay Writing Tool is not just the software but is also a powerful and helpful tool for students to start their college education. Using this software would assist you in writing your essay. You can write your essay with ease and proficiency without any hassle. The software enables you to write and publish your essay quickly and easily. Using it, you will get great satisfaction of doing good college essay without any setbacks.There are some unique features that make this sof tware worth using. First of all, you can create your own masterpiece with these free tools. You can even use the advanced feature to view your work through its online interface. Moreover, you have access to editing and reviewing your work. This makes it easy for you to make any changes and corrections.You can find various essay templates in these tools that would aid you in writing your essay. You can easily modify these essay templates and alter the format and content of your essay. The essay templates are very easy to use and can be customized according to your preference.In addition, these tools are very user friendly. Once you finish writing your essay, you can save your work in the documents and share them with other members of your writing club. You can also keep your work on your word processing system, so that you can access your work anytime, day or night.In addition, you have the option of purchasing Microsoft Word Essay Writing Tool for a fixed price. However, if you want to get the best of these tools, you have to pay some money for this particular software.These programs are of great help for students to start their college essay writing. It is ideal for those students who are looking for extra curricular assistance or homework help. With the help of this software, you can easily create a masterpiece that will be very beneficial for you in future.

Heisenburg essays

Heisenburg essays On first discovery of; Heisenberg's Uncertainty Principle, one might be tempted to see it as applicable to the world. Of abstract, as well as abstract scientific research in some ivy covered campus of some high tech partial accelerator laboratory, here were one may conjure up mad scientific blowing electrons to pieces in the hopes of answer of the universe. The Uncertainty Principle is, basically, summed up in this statement: The more precisely the position of an object is determined, the less precisely the momentum is known in this instant, and vice versa. What does this mean? First of all, it means that if you observe a moving object, you cannot both decide at what speed it is moving, and the precise location, which it is at. If you measure one of them, you can't measure the other correctly. This implies that there is an uncertainty (hence the name of the principle) about one of the two properties. Well, you might ask, does it really matter? Consider this: if you know that an electron is moving at a definite speed, the uncertainty principle says that you can't possibly know where it is. And here comes the tricky part, since you don't know where it is, it may possibly be anywhere. There is a small possibility that the electron may exist at any given point in the universe at the moment you are trying to observe it. Also, in Hiesenburges uncertainty principal, the second law of thermodynamics runs parallel with this particular topic. The second law of thermodynamics asks the ancient question about things going wrong in our lives, has surprisingly simple answers in modern basic chemistry. (Even things happening to us which cause that painful cry, why me? Why Me?) Still more important to ones philosophy about life, these chemical ideas can and may startle us into seeing and believing how fortunate we all are: that things dont go wrong more often! Well talk mainly about down-to-earth things, such as common...