Managerial Accounting Final Report Essay Example | Topics and Well Written Essays - 1500 words

Managerial Accounting Final Report - Essay Example This paper offers managerial accounting report based on an entity’s costing accounting data and recommends improvements to the firm. The scope of management accounting incorporates financial accounting concepts, cost accounting concepts, and statistical concepts to develop an understanding of a business environment towards informed managerial decisions. Cost accounting offers data on costs and facilitates analysis for cost control or cost based decisions (Bhattacharyya 2). The management approach’s ability to use existing data for forecasting and planning identifies its significance to management because it aids strategy developments for market dynamism (Mitra 1-27). Incorporation of statistical tools in the management approach also empowers it to determine informed choices for efficient operations because the techniques allows managements to compare environmental factors in a market and to identify the most suitable applications that can guarantee market control and ef ficient and effective operational processes. The report relies on these aspects to review the firm’s cost and processes (Thukaram 5). ... This paper applies a case study to demonstrate application of managerial accounting concepts in resolving problems. The report is based on SSI case study. The firm is a meat, burger, and chicken processing plant in Idaho, United States. Its executive group has learnt that their leading clients are not satisfied with the firm’s pricing and they are considering contacts with SSI’s competitors, arguing that the firm’s prices are too high. Other clients are however happy with the organization because it offers the cheapest prices in the locality. This controversy in opinion among clients identifies pricing as a problem that should be explored for possible reconciliation with the discontent clients. The problem identifies the need to explore following research questions. What are the recommended cost savings that will help SSI increase its profits? Is the organization pricing its products efficiently? Method The report is based on a case study on SSI firm that offers six distinct products to six different clients. Data was collected from published information on the organization’s accounting and managerial records regarding involved production activities and their costs. The data was then analyzed, objectively, to understand the firms costing and pricing. Results The organization produces six types of meats for retail sales. It operates two sessions per day with each session lasting for eight hours and pays direct labor costs per hour. The operations involve six different set ups per day. Each set up produces each product and clean up and adjustments for each product specification precede each set up. The following table summarizes SSI’s daily schedule for the production and set up processes in their order of production. Table 1: Daily