We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Managerial Accounting - Essay Example

Comments (0) Cite this document
Table of Contents Implication of Porter’s Competitive Strategy 2 Cost Leadership 2 Differentiation 2 Focus Differentiation 2 Implications of Porter’s Generic Strategy 3 a)Product Differentiation 3 b)Focus Differentiation 3 c)Cost Leadership 3 Critical Success Factors for Porter’s Competitive Strategies 4 Strategic Management Accounting Tool for Maintaining Competitive Advantage of Parts Limited 4 i.Balance Scorecard 4 ii.Target Cost Management 5 iii.Strategic Variance Analysis 5 Implications of Activity Based Costing 5 Inaccurate Costing in Product Diversity 5 Activity Based Costing 5 Measuring Actual Cost through Activity Based Costing 5 Time Driven Activity Based Costing 6 Life Cycle …
Download paper
Managerial Accounting
Read TextPreview

Extract of sample
Managerial Accounting

Anything in which a firm excels than its competitors is considered as its competitive advantage. Michael Porter has mentioned three main strategies in order to gain the market share by acquiring competitive advantage. They include: Cost Leadership Differentiation Focus Differentiation Cost Leadership Parts Limited is that company which doesn’t earn through number of units sold, but it maximizes its profits through the price of units. Parts Limited charges higher prices to its customer which means that they sell their products on relatively premium prices. When it comes to cost differentiation, this strategy is an option for Parts Limited. There is a possibility that the company start focusing on generating revenue not through premium prices but through number of units sold. ...
In my opinion, this strategy is currently availed by Parts Limited because it is selling its unique products and charging premium prices for them. These products are perceived as unique and important in the eyes of the customers and the firm utilizing this strategy, usually is aware of the needs and unique demands of its customers. Focus Differentiation This strategy usually consists of two variants. In focus strategy a firm can either go for: a) Focus differentiation in its own target market b) Cost focus to seek cost advantage within its target market In this regard, usually targeted customers have unusual needs or the delivery of production system. Cost focus assist in acquiring cost advantage of a particular segment whereas focus differentiation fulfills the special and unique needs of the customers. As far as Parts Limited is concerned, this type of strategy cannot be applicable for a company dealing in machines industry. The reason is hardly customers are concerned about using unique and high priced parts for their machines. In fact, the emphasis is basically on sustainable and good quality products. This type of strategy mostly applies in the apparel & garment industry, cellular industry, electronics industry (including personal computers, T.Vs etc.), cosmetic industry etc. Implications of Porter’s Generic Strategy In the above section, a brief analysis has been done of each of the three porter’s strategy. Coming to back to Parts Limited and before analyzing which strategy can prove to be productive for Parts Limited; all the three strategies need to be analyzed in respect of Parts Limited. a) Product Differentiation Parts Limited has been utilizing product differentiation strategy. It ... Read More
Cite this document
  • APA
  • MLA
(“Managerial Accounting Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.net/other/7878-managerial-accounting
(Managerial Accounting Essay Example | Topics and Well Written Essays - 1750 Words)
“Managerial Accounting Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.net/other/7878-managerial-accounting.
  • Cited: 0 times
Comments (0)
Click to create a comment
Managerial Accounting
In order to remedy this situation, a company would likely use short-term loans to pay employees what they are owed. This would then take wages and salaries out of liabilities and replace them with debt. On the other hand, it is sometimes possible that a company has money to pay their employees before they actually have to do so.
4 Pages(1000 words)Essay
Managerial accounting
Manufacturing overhead for application to jobs during December Manufacturing overhead for December= total manufacturing overhead – manufacturing overhead till November =2400000- 2200000 =200000 Optic Vision would apply $ 200000 of manufacturing overhead during December.
4 Pages(1000 words)Essay
Managerial accounting
The conventional accounting impact uses the basic accounting principle of “Matching”. The Matching concept is basically a “fundamental concept of accrual basis accounting that offsets revenue against expenses on the basis of their cause-and-effect relationship.
11 Pages(2750 words)Essay
Managerial Accounting
The objective of the internal accounting system is to generate financial information that will streamline operational costs. As a result the operations can be made more efficient. In order to meet the objective of cost control, the accounting system provides information in several areas: cash receipts, cash disbursements, petty cash, payroll and fixed assets (Hill and Jones, 2007).
3 Pages(750 words)Essay
Managerial Accounting
As a marketing manager for the Crunchy Cookie Company, I would not underestimate sales for a number of reasons. Cookies are frequently eaten edibles and underestimating its sales might create a shortage of products. If the budget is inappropriate, materials are ordered in accordingly and will not result in an increase in sales.
2 Pages(500 words)Essay
Managerial accounting
Yet our experience since the early part of this decade has shown this to be an illusion. Massive accounting irregularities and scandals, involving large
8 Pages(2000 words)Essay
Managerial accounting
It states that, in measuring net income for an accounting period, the costs incurred in that period should be matched against the revenue generated in the same
11 Pages(2750 words)Essay
Managerial Accounting
The outflows are calculated multiplying 200 times $500 which equals $100,000. The 200 is the days the lodge is open and $500 are the daily expenses. The 20
3 Pages(750 words)Essay
Managerial accounting
Management accountants seem to be moving from their traditional roles of being scorekeepers and controllers in an organization to playing a strategic role. This essay will analyze the changing role of management accountants in modern day businesses by looking at the
9 Pages(2250 words)Essay
Managerial Accounting
To determine the effect that Machine Hours has on the total cost of production, a relationship needs establishing through the straight line passing through the coordinates. Where this
3 Pages(750 words)Essay
Let us find you another Essay on topic Managerial Accounting for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us