What the disadvantages of traditional product costing system

Assignment Help Accounting Basics
Reference no: EM131710674

Management Accounting-

You are required to prepare answers to the essay questions.

Task 1. Many firms realise that there are fundamental problems with the methods they use to cost their products or services. But should they change from traditional product costing methods to activity-based costing (ABC) methods? It is important first of all to understand the limitations of existing product costing systems in today's competitive environment typified by a diverse product line populated by many low-volume complex products.

Required -

1. What are the disadvantages of traditional product costing systems that they no longer meet the needs of today's managers?

2. How does the cost structure of most manufacturing firms today differ from their cost structure of 20 years ago?

3. What caused this change in cost structure?

4. Why can't traditional product costing systems account for costs of product diversity? Volume diversity? Product complexity?

Task 2. Compare and contrast Balanced Scorecard with financial analysis and explain why Balanced Scorecard is more appropriate for analysing entity's performance than financial analysis?

Task 3. Describe disadvantages associated with budgeting in management performance evaluation. Explain remedies for improving the use of budgeting in evaluating management performance.

Reference no: EM131710674

Questions Cloud

What is the amount of her monthly : What is the amount of her monthly payment on the remaining loan if she must pay 12% annual interest on a 24 month car loan?
What is the present value of a perpetuity : What is the present value of a perpetuity of $7883 per year given an interest rate of 7.5%, assuming that the first cash flow occurs today?
What is the addition to retained earnings : Suppose the company paid out $67,000 in cash dividends. What is the addition to retained earnings?
Stated rate with semi-annual compounding : Assume you can invest money at a 10% stated rate with semi-annual compounding.
What the disadvantages of traditional product costing system : BA7003 Management Accounting. What are the disadvantages of traditional product costing systems that they no longer meet the needs of today's managers
Why organization is most efficient as related to payer mix : Summarize reasons why each organization is most or least effective and efficient as related to the payer mix, customer and patient demographics.
Options on apparel group stock : On October 31, the following options on Apparel Group stock, all expiring in December the same year, sold for the following prices:
Discuss two- to- three ethical challenges : In 250-300 words, discuss two- to- three ethical challenges you might experience when working with culturally diverse groups.
What is the net advantage to leasing : The annual depreciation tax shield is $4,307 and the after-tax annual lease payment is $9,240. What is the net advantage to leasing.

Reviews

len1710674

11/7/2017 7:37:36 AM

You are required to prepare answers to the essay questions set out in tasks 1 to 3 in the table below. You must use appropriate academic peer reviewed literature to support your arguments and you must also, where appropriate, use self-generated financial data to help explain your ideas.

len1710674

11/7/2017 7:37:31 AM

Notes - You are required to prepare a fully referenced assignment (3,000 words). Word count at the end of the essay before the list of references (i.e. the word count excludes the references and exhibits). Write a brief introduction in task 1 and in task 2 and in task 3. The references should come from journals (google scholar or another) and the quality is important of the journals (by looking at the top rank of journal and looking at Cited by good number) and the dates of issue should not be old and use Harvard referencing style.

Write a Review

Accounting Basics Questions & Answers

  Distinction between public and private companies

Why do UK accounting rules for individual companies differ not simply on the distinction between public and private companies?

  Prepare the corresponding statement of cash flows

MBA 6315 - Based on the information provided in each scenario, prepare the corresponding Statement of Cash Flows in the columns to the right of each scenario.

  Record all of the journal entries required

Under a perpetual inventory system, record all of the journal entries required for the above transactions

  Problem regarding the fuel economy

A consumer organization has reported test data for 50 car models. We will examine the association between the weight of the car (in  thousands of pounds) and the fuel efficiency (in miles per gallon). Use the data provided on the disk to answer th..

  The development costs were incurred after technological and

janson pharmaceuticals incurred the following costs in 2011 related to a new cancer drugresearch for new formulas

  Compute the federal income taxes to withhold

Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee.

  What are the tax consequences of transactions

A and B each has owned 50% of the stock of X Corp for many years. What are the tax consequences of the following transactions

  In the month of june bonitas beauty salon gave 3460

in the month of june bonitas beauty salon gave 3460 haircuts shampoos and permanents at an average price of 50. during

  Apex chemicals company acquires a delivery truck at a cost

apex chemicals company acquires a delivery truck at a cost of 29564 on january 1 2010. the truck is expected to have a

  Type your quesa companys current net operating income is

type your quesa companys current net operating income is 17200 and its average operating assets are 95000. the companys

  The gravitational force of attraction

The gravitational force (in lb) of attraction between two objects is given by F = k/x2  where x is the distance between the objects. If the objects are 10 ft apart, find the work required to separate them until they are 100 ft apart.

  Total assets at the beginning of the year were 13183 what

x company a merchandising company had the following transactions during the year1 received 8175 in cash contributions

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd