Explain and describe the various costing methods used in management accounting. Outline their advantages and disadvantages.

Assignment 2 – Essay (100 points)

Explain and describe the various costing methods used in management accounting. Outline their advantages and disadvantages. Provide real time examples by using data from listed companies in the UK.

Guidelines for Assignment 2

This is an individual assignment. Ground your answers in relevant theory.

Plagiarism and reproduction of someone else’s work as your own will be penalized.

The report should be your own work and properly referenced according to the requirements of the APA Referencing system.

Structural elements should include a cover page, introduction, main body, conclusion and reference page.

Literature should be sourced from a variety of external sources such as textbooks and journal articles.

 

What would happen if the transaction were not recorded? Try to relate together as many accounting concepts to each example of internal control.

GO TO A STORE (Retail or Grocery) AND SHOP FOR INTERNAL CONTROLS

The students are to go a local store and observe the internal controls in action in a business. The student is to describe the internal control , the objective of the control and how the control relates to the accounting records.

The report should be 2-4 pages with at least 4 internal controls that can be observed.

Five controls have been specifically identified: segregation of duties, proper authorization of transactions, pre numbered documents, physical control/safeguarding of assets and records, and monitoring or periodic assessment of controls and procedures.

The internal control procedures is that a receipt must be given when cash is received. The objective is physical control over assets and records. What would happen if the transaction were not recorded? Try to relate together as many accounting concepts to each example of internal control.

Discuss ethical considerations related to variance reporting.

Course Learning Outcomes for Unit VII

Upon completion of this unit, students should be able to:

Create variance reports to make business decisions.Use variance reports to make business decisions.

Analyze accounting information used to make strategic business decisions.

Analyze cost variances to make business decisions

Apply ethical behavior to accounting–related situations.

Discuss ethical considerations related to variance reporting

Evaluate the design adequacy of the general ledger system.

 

Evaluate the accuracy of Pay Right for processing all payroll transactions.

Payroll may have set up Pay Right incorrectly, fallen behind on tax payments and filings, miscalculated overtime, forgotten to process payroll on time, not keeping records, and not properly integrating pay roll in to the company’s books.

Evaluate the design adequacy of the general ledger system.

Entering items in the wrong account, transposing numbers,leaving out or adding a digit or a decimal place by mistake.