You Should Answer 2 docs -

Respond to three articles with 150 words each- Include reference for each Response.

1. Respond to 1st article with 150 words.

Activity-based costing is a method of costing which helps the organizations to identify the organizational activities and later on it will assign the activity cost to each and every product or service manufactured in the organization. In comparison with conventional costing, the model of Activity-based costing usually deals with considerations converting most of the indirect costs into direct costs. Using activity-based costing, companies can estimate the cost elements of their services, products, performed activities which in turn helps in the decision-making processes of the company ("A Comparative Study of Traditional Activity-based Costing and Time-driven Activity-based Costing at a University Hospital in South Korea", 2019).

The methodology of activity-based costing is the one that follows the mechanism of segregating the costs. This will focus on allocating the costs in the operational management of the organization. In segregating activity-based costing helps in ways to monitor the variable cost, fixed cost, and mixed or an overhead cost. Even for the business which only works abundantly on academic decisions, activity-based costing has proven itself to be among by going beyond academics ("Activity-based costing", 1999).

Master budgeting concept in businesses is regarded as one of the most expelling strategies which are highly expensive. It is one by which organizations collect and get featured the expected sales of the future, the production level of organizations, purchases, incurred expenses of the future deals, capital investments in the business trends. Most apparently it is viewed that the master budgeting method holds on all the financial budgets, along with the balance sheet and the income statement that we budgeted (Askarany, 2011).

Master budgeting is especially used for future accomplishments, future processes of the company. In organizations, master budgeting is treated like a folder with the sub-topics that includes sales budget, production budget, manufacturing budget, merchandise purchase budget, selling budget, capital budget, cash budget, general and administrative budget, etc., by combining all the lower budgets of organizations, the management of the company will prepare a master budget in companies well form structured, to define and manage it with the current provisions accordingly in the future also (Bhatti & Phaup, 2015).

The master budgeting process in organizations is important because it is the concept in financial aspects that usually serves as a tool in businesses. On the basis of master budgeting itself, companies and employees working in the companies can have a comparison between the organization's actual as well as budgeted performance. Even the master budget will help the organizational staff by providing good output, job satisfaction, and predicts the growth of the businesses (Bushong, Talbott & Cornell, 2008).

When compared with all other costings methods, activity-based costing will bring out more accurate results of costing. It also helps in enabling product info more qualified and provides high profitability analysis (Charles & Hansen, 2008).

1. Respond to 2nd article with 150 words

Activity based costing

Innes, J. & Mitchell, F. (1995). A survey of activity-based costing in the U.K.’s largest companies. Retrieved from,

https://www.sciencedirect.com/science/article/pii/S1044500585710086

Activity based costing is researched in this article and it is found that there are many manufacturing companies that want to implement it because of its benefits. ABC is used in finding total costs when a product is made and it is done so that they can have an idea on how much costs are spending on making a product and they will also eliminate indirect costs. This method is of great help to companies when determining pricing strategies and also increase their sales and save money on product creation (Innes, Mitchell, 1995).

Almeida, A. & Cunha, J. (2017). The implementation of an activity- based costing (ABC) system in a manufacturing company. Retrieved from,

https://www.sciencedirect.com/science/article/pii/S2351978917307990

Activity based costing method is explained in this article so that they can be used in manufacturing companies and it is helpful to companies in finding actual costs of products when they are being produced in large number. They will start by materials that are needed in making them and eliminate any unnecessary costs and come up with price which is suitable for product and gain success.

Master budget

Shim, J. K. & Siegel, J. G. & Shim, A. I. (2018). Budgeting basics and beyond. Retrieved from,

https://books.google.co.in/books?hl=en&lr=&id=FsioDgAAQBAJ&oi=fnd&pg=PR11&dq=master+budgeting+&ots=qPF9ijZ5uq&sig=qsIjZEyDf4J45m_k8khyqXOqJvI#v=onepage&q=master%20budgeting&f=false

when making a budget there will be less salaries to employees so when dealing with compensation plans there will be increase in this estimated value and there are other operations as well. In some cases some managers may ignore when there are new opportunities where they do not have enough resources to use in that project. Example is explained as that master budget will consist of net profits, capital expenditures, depreciation, changes of working capital and ending cash and every quarter of the year will be observed

Raji, S. M. (2019). Master budgets. Retrieved from,

https://www.researchgate.net/publication/331062720_master_budgets

Because of importance of master budgeting in organization, it is necessary for them to develop them. this method will deal with all financial statements so final outcome where decisions made based on them will be good and so all kinds of organization is implementing them

As a manager learning about these topics will assist in making decisions more efficiently and managers need to keep track of all related operations so that they can determine how much profits they have gained

1. Respond to 3rd article with 150 words

ABC

Innes, J. & Mitchell, F. (1995). A survey of activity-based costing in the U.K.’s largest companies. Retrieved from,

https://www.sciencedirect.com/science/article/pii/S1044500585710086

Activity based costing is defined as process of allocating costs of overhead based on the activities assigned to them. when making a product it is necessary for companies to identify costs of every unit. So this method is used in difficult environments i.e. producing several machines at a time and in this article we will discuss how manufacturing companies are using this method

Qudah, L. A. M. & Hroot, Y. A. K. (2017). The implementing activity-based costing technique (ABC) and its impact on profitability: a study of listed manufacturing companies in jordan. Retrieved from,

https://www.econjournals.com/index.php/ijefi/article/view/4384

Authors of this article are identifying benefits in using activity based costing since it improve the process of costing. For example there will be expansion of cost pools so that they can gathered on overhead costs and it will be done based on the activities conducted rather than on entire cost pools of an organization. Further it makes new bases to assigning of overhead costs so that costs generated on basis of products each instead of overall products or quantities of products created. Also activity based costing is capable of altering indirect costs i.e. salaries, depreciation and utilities which are traceable.

Master budgeting

Shim, J. K. & Siegel, J. G. & Shim, A. I. (2018). Budgeting basics and beyond. Retrieved from,

https://books.google.co.in/books?hl=en&lr=&id=FsioDgAAQBAJ&oi=fnd&pg=PR11&dq=master+budgeting+&ots=qPF9ijZ5uq&sig=qsIjZEyDf4J45m_k8khyqXOqJvI#v=onepage&q=master%20budgeting&f=false

Master budgeting also managed all functioning operations of budgets and ensure that company will functioning effectively. So budget plans are crucial and based on these matters alone management can make decisions. Still there are some problems when it comes to implementation of maser budgets by organizations when dealing with compensation plans offered to employees.

Raji, S. M. (2019). Master budgets. Retrieved from,

https://www.researchgate.net/publication/331062720_master_budgets

Since financial budgeting is very crucial to organizations and when there are in mergers or collaborations they need to check whether that company is financially secured and it can be done through budget plans only. This way they can decide they can verify whether there will be any problems in regards to future. Example of master budget is explained as that when a company is involved in a merger and they have to manage two groups of staffs and it depends on that management to use them so here master budget will be used for running of that company i.e. cashflow, loan rates and debts and sales etc should be involved in this master budget

From this discussion we can say that managers can make use of these concepts when they are manufacturing products when it comes to ABC and master budget will allow information of financial status of a company