Management Accounting Master Assignment Example | Topics and Well Written Essays - 2000 words

Management Accounting Master - duty assignment ExampleThe attached report is a proposal to introduce innovations in our management accounting techniques specifically with regard to Activity Based Budgeting related to Advanced Manufacturing Technology (AMT). The present techniques in place do not seem to be reflecting the changed industry dynamics and priorities. (Lucey, 1993)As discussed at the recent conference we ar expecting to develop new products in the engineering cranes and automated fork lift equipment in the Premium segment. These products are judge to be very popular with the automobile industries because of their versatility. Strong business contacts with both the above segment and a referral network are expected to help gain a rapid entry into the market.ABC plans to strain the automobile industries high quality engineering equipment at prices which are competitive relative to other gift quality suppliers in the market. The management of the company believes that the inclusion of precision controls within our products will better dispense the needs of the automobile industry. (Garrison, 2003)Conventionally management accountants used forms of variance analysis in arriving at addresss. dissension analysis compares the budgeted versus the actual costs of raw material during a manufacturing cycle. Variance can be measured for both costs and revenue. When costs are allotted to material or labor a archetype rate is the benchmark used to compare variances. The standard rate of material versus the actual material cost in the market determines the efficiency of a purchase or labor mechanism. The accepted product be used volume based measures such as labor hours or labor dollar to portion out indirect costs. Traditional roles allocated to management accountants typically include-Facilitating the preparation of financial reportsBeing a pause of the strategy forming teamPlanning optimal resource usePlanning and controlling business military actio nThe management accountant is viewed as someone who oversees cost control through a strict edict of unit prices and labor. (Hansen, 1997)In this context it should be stated that Cash is regarded as an asset that has the ability to commence opportunity cost. This because cash is the most liquid form of asset and these is available on a groom basis. Cash in hand, cash at bank are the most liquid form in terms of currency and checking. These can be enumerated as the instrument of short term