Paraphrase
College of Banking and Financial Studies SAUD ST09574
Presentation Management accounting
Introduction
I will discuss the definition of managerial accounting, which is always important in every commercial project. Nevertheless, I will talk about various types of management accounting and what are its benefits. In any case, at the end of the matter, I will talk about High Max, which manufactures advanced laptop computers that are located in the company in Sohar and have An investment of 4 million riyals. Also, it has 600 employees. In any case, this company High Max revenue sold in the past five years was compared to the increase in profits for the total sales of the company alike for the past five years, whose liquidity status was a profit for the company, however the company had an impact on increasing the city and looked for Close inventory.
Management accounting
Management accounting: that is produced for managers within the organization for the process of identifying, measuring and analyzing preparation and change to communicate information that helps the manager to achieve organizational goals. Which is ultimately used in order to guide the decision-making process. In any case, we also have a definition of financial accounting which means that it is a branch of the accounting specialist that tracks the financial accounts of the company that uses the consolidated instructions and is registered with N during the transactions; it was cleared and financially presented.
The cost accounting system
The cost accounting system: performs typical costs by tracing raw materials as they pass through several stages of production, which slowly turn into full commodities that are made in real time. The raw materials account is recorded and the goods are deducted in the process account. Because some products go through many stages before they are completely named after the goods that were manufactured, sometimes times there are many different business accounts for operations.
The Benefits of cost of accounting systems
Cost objects analysis which can collect revenue and expenses by the cost component, for example the distribution channel and the production line.
Costs can be on the trend line in order to discover the high expenditures that indicate expenditures.
You evaluate the inventory that costs the inventory cost for financial reporting purposes.
Inventory management system
Inventory management system: It is a mixture of technology for some programs, devices, processes and procedures that oversee the control and maintenance of products for a warehouse, whether those products are company assets or finished products ready to be sent to one of the sellers or sent to one of the consumers in any case the inventory management system consists of several ways.
A system that identifies stock items and related information, for example barcode labels or asset tags.
Hardware tools for reading barcode tags for example smart phone barcode scanners.
The benefits of Inventory management system
Productivity and efficiency in operations is achieved.
The process of reducing inventory and increasing sales and profit.
Keep clients safe.
There are four types of system inventory management
Tow bin system ABC System
JIT System Economic order quantity
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The Job costing system.
Job costing system:
The process of systematically and correctly determining labor and manufacturing cost systems by road.
Which divides it by the general costs and some direct materials and some direct labor costs and its estimate of its actual value. In any case, the manufacturing companies use the cost of work in order to control the process of using raw materials and some working hours in order to allocate the cost of each application separately. In any case when some of the company’s products are Identical, the cost of the job is an effective performance in order to allocate the cost to all the products of the demand at the present time. For example some companies are now using systems in order to calculate the cost of a work in order to improve their profitability costs.
The Job costing system of AD/DIS
Advantage:
I can check costs at any stage of the job completion.
Obtaining the earned profit from the job separately in order to estimate the job costs.
I can manage the cost estimate of the job to get past records to estimate the cost of the job.
Disadvantage:
More work needs to be done in order to preserve the information.
Be effortless and costly to work very expensive.
Job costs are meaningless because of the large inflation period.
Price optimizing
Price optimizing : method is provided for determining a preferred set of prices for products in general. In any case, a model for sale is created for cost sales. After that, a preferred set of prices for multiple products for sales and the cost model are also created, providing a standard economic drive for sales in order to demonstrate prices in creating a sales model. In any case, the engine of the financial model for the sake of being the engine of economic improvement is the standard for the engine of the financial model for receiving inputs from the econometrics.
The benefits of Price optimizing
Immediate financial benefits help the process of improving prices for companies to analyze and focus in some of the major magazines. For example the number of transfers, revenue generated by the media that helps the business grows in order to get more ideas about the benefits of the pricing strategy in the market.
Job order costing
Job order costing: means the cost of a work order or job estimation, which is a system for assigning costs to the industry alone. Individual production. In any case, an estimation system is used for the cost of work from different product elements. In any case, job cost records are the same as the sub-ledger of the company’s documents. For example, a company designs and produces machines, building large buildings on demand.
Process costing :
Process costing : it is used in cost accounting to describe one way of collecting and assigning manufacturing costs to the individual unit of the product. In any case, the treatment cost system is used when producing identical units. For example, the company manufactures a large amount of a similar product that requires processing operations that occur in Separate section.
Conciliation
In summary, I have written the definition of management accounting, what are the points for management accounting and the benefits of management accounting. In the end, I spoke about the High Max company, which is located in Sohar and has an investment of 4 million Omani Rails and the number of its employees 600 employees.
Variable cost
| Variable cost | RO | RO |
| Materials cost per unit | 100 | 110 |
| Labour cost per unit | 40 | 50 |
| Finishing cost per unit | 25 | 50 |
| Distribution cost per unit | 7 | 28 |
| Inspection cost per unit | 4 | 4 |
| Total | 176 | 200 |
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Calculation
| A( Fixed Cost) | B(Fixed Cost) | |
| Depreciation on Machinery per year . | 7100 | 8000 |
| Rent of the factory per month | 36000 | 42000 |
| Interest cost per annum | 6000 | 7000 |
| Electricity and water bills per quarter. | 8000 | 12000 |
| Staff salary per month | 38400 | 42000 |
| Marketing cost per year | 8000 | 7500 |
| Insurance cost per Quarter | 4000 | 4000 |
| Total | 107500 | 122500 |
Complete
A) 176+107500 = Total cost 107676
B) 200+122500 =Total cost 122700
A)107676×20% =215352%
B)122700×25% =30675%
Complete
A) Selling price =Total cost+ Profit
107676+215352 =129211.2 RO
122700+30675=51.68 RO
B)Selling pries =Total cost +Profit
122700 +30675=153375
=12278.7
The benefit and goal
The goal of these calculations is to study these fixed and changing things, for example, a high max company that makes laptops for the sake of knowing the fixed prices, always for the salaries of the employees. They have 600 employees. The salaries of 600 employees are forcibly buried, whether lost or won.
The real goal is to know the unit price and the selling price
The benefit of these two methods that you wrote is for knowing the unit with the selling price
Reference
Accounting Course.(2019). What is Job Costing? - Definition | Meaning | Example.[Online]. Available at https :// www.myaccountingcourse.com/accounting-dictionary/job-costing
[Assessed 20/12/2019]
Freepatentsonline.(2019). Price optimization system – Demandtec.[Online]. Available at
http:// www.freepatentsonline.com/7523047.html
[Assessed 20/12/2019]
Accounting Course. (2019). What is Management Accounting? - Definition | Meaning | Example.[Online]. Available athttps://www.myaccountingcourse.com/accounting-dictionary/management-accounting
[Assessed 20/12/2019]