StudentShare solutions
Triangle menu

Management accounting - Case Study Example

Nobody downloaded yet
The table in Exhibit 1.5 provides this information. Exhibit 1.5 Calculation of the Profitability of Each Cost Object Description Cost Objects Accounting Economics Law Revenue 450,000 320,000 525,000 Expenses 205,132 149,704 192,164 Profit 244,868 170,296 332,836 Percentage 54.42% 53.22% 63.40% Exhibit 1.5 indicates that Law is the most profitable course with a percentage profit of 63.4% followed by Accounting with 54.42% and Economics the least profitable with 53.22%. The difference is profitability among the three courses can be attributed to the differences in the fees charged per EFTSL and the amount of government grant received per EFTSL. The student fee per EFTSL is highest for the Law course and lowest for the economics course. In fact, the student fee for the Law course is $6,000 or 67% more than the economics course and $5,000 or 50% more than the Accounting course. The government grant per EFTSL for the Economics course is $1,000 or 40% higher than the Accounting course and $1,000 or 17% more than the Law course. In total the Revenue per EFTSL for the Law course is $6,000 or 40% more than that for Accounting and 31% more than that for Economics. ...
It is described as a complex and comprehensive process which requires careful and systematic analysis to determine different cost pools and activities that relate to them. This makes the implementation of an ABC system a very costly and time consuming exercise (Estrin at al 1994). According to Horngren et al (2011) ABC is one of the best tools available for improving a costing system. Some of the reasons given include the following. i. ABC emphasises individual activities as main cost objects – each activity having a specific purpose while traditional costing systems do not (Horngren et al 2011) ii. ABC calculates the cost relating to each activity and assigns costs on the basis of the activity which led to the production of the service or product and this leads to higher levels of accuracy when compared to traditional methods like absorption costing (Horngren et al 2011) iii. ABC systems facilitate more favourable pricing and product-mix decisions (Horngren et al 2011) iv. ABC enables decisions relating to cost control by providing information that facilitates process improvement and product design (Horngren et al 2011) v. Studies have found that some level of success is achieved when ABC is implemented which leads to improvements in both manufacturing and business performance (Fei and Isa 2011) vi. ABC provides results that are very different from those generated from less costly methods. However, the information provided can lead to major decisions that impact profitability and other important aspects of the business on which it depends (Estrin et al 1994). Motivations for disagreement The motivations that the Accounting Professor has ...Show more


To: John – Project Manager From: A.B.C Consultant Subject: Activity Based Costing at The University of Australia Date: May 13, 2013 Memorandum Introduction This memorandum provides information relative to the implementation of activity based costing (ABC) system at your institution…
Author : lacy33
Management accounting case study
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Management accounting case study"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Smith's Accounting Tax & Service Case Study
The basic management resources or 6 M’s (men, material, machines, methods, money, and market) facilitate an organization to obtain its targeted results quickly and economically in terms of production, sales, profit, and goodwill in the market. This paper, while giving effective recommendations to Amanda on how to improve the management of her small business, will discuss the magnitude of management functions in current business environment.
3 pages (750 words) Case Study
Management Case Study: Dell
The decline in sales was attributed to many factors that the corporation has long since tried to cope up with. The solutions derived aimed at revitalizing its image and improve on sales. Factors that led to decline in sales are internal and external issues.
6 pages (1500 words) Case Study
Drabinsky and Gottileb: Accounting Case Study
Drabinsky and Gottileb operated a kickback scheme from 1990 to 1994. In the kickback scheme two Livent vendors are appointed who helped Drabinsky and Gottileb, siphon millions of dollars from the company directly into their own pockets. This is an illegal activity since both Drabinsky and Gottileb are the major shareholders of the company, but their rights for the share comes after clearing the dues of the other shareholders.
16 pages (4000 words) Case Study
Financial Management Case Study
"The Abacus Group offers electronic component distribution, own brand product, specialist distribution of displays, embedded computing and wireless communications, and value added services including electromechanical sub contract manufacture." (Abacus Group Annual Report & Accounts, 2006)
6 pages (1500 words) Case Study
Management Accounting College Case Study
Armed with a new business model aimed at customers who prefer lower-priced, no frills travel, Southwest Airlines soared, ascended and earned the title of being the largest airline in terms of passengers carried domestically per year (Sorensen 2006). As with any business organization, the profitability of the operation of Southwest Airlines is determined by the amount of revenue that it can generate versus the amount of costs that it incurs for the period (Garrison et al, 2007).
4 pages (1000 words) Case Study
International Management Case Study
This extends to the management of employee behaviour and the strategies deployed for the maximisation of employee motivation levels. With specific focus on whether or not knowledge of achievement motive would be of any value to expatriate managers in Madruga's Singapore subsidiary, the report will argue that even though it is of value, the said value can only be realised if pre-existing achievement motive knowledge is adjust to correspond with the culture in question.
4 pages (1000 words) Case Study
Accounting case study on BP p.l.c
Its production of gas and oil in the year 2012 was the sixth largest in the world and is amongst what are referred as the “supermajors” in the production of gas and oil. It is a vertically integrated company
7 pages (1750 words) Case Study
Accounting case study analysis
However, there is a rule that states that the revenues and expenditures ratio for a charitable organisation should not exceed 25 percent. The rule helps to prevent donors from being exploited by
1 pages (250 words) Case Study
The Ave-Co Plc seeks for a solution. This executive report presents two mind maps and the following analyses to the management team: first, the problem faced by BH (both control and finance). Second, the strategic management
4 pages (1000 words) Case Study
Investment Appraisal (Case Study from C. Drury, Management and Cost Accounting / CH 14)
The company has developed a favorable corporate image based on innovation and a high level of technological advancements. The company plans to commit a substantial amount of funds toward the acquisition of an automatic crane that replaces the old one. The central issues in
4 pages (1000 words) Case Study
Comments (0)
Click to create a comment
Let us find you another Case Study on topic Management accounting case study for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us