Management Accounting Master Assignment

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Mr. R. Todd, Senior Manager Finance, advised me to present my case to you after the recent conference. The enclosed report is a detailed overview of our present financial and management information systems and possible changes. The heavy equipment manufacturing industry has recently been through a crisis.


The 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 are expecting to develop new products in the engineering cranes and automated fork lift equipment in the 'Premium' segment. These products are expected 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 offer the automobile industries high quality engineering equipment at prices which are competitive relative to other premium quality suppliers in the market. The management of the company believes that the inclusion of precision controls within our products will better serve the needs of the automobile industry. (Garrison, 2003)
Conventionally management accountants used forms of variance analysis in arriving at costs. Variance analysis compares the budgeted versus the actual costs of raw material during a manufacturing cycle. Variance can be calculated for both costs and revenue. ...
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