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Managerial Accounting Essay

1148 Words5 Pages

Student Name : Mohamed Hassan Ismail Student ID : 1451510688 course : b292 Instructions: Use the annual report to answer the following questions: 1- Is Nidec’s Annual Report primarily a financial accounting document or a managerial accounting document? What evidence supports your conclusion? The annual report of Nidec company is mostly financial accounting document because it has financial statements and financial information . it also has managerial accounting but in the matter of fact its financial accounting document 2- "Value chain refers to the sequence of business functions in which customer usefulness is added to products or services of a company". Provide evidence of management concerns about the value chain. The value chain …show more content…

1- Electricity 2-DC motors 6- Is allocation of manufacturing overhead to products necessary for external reporting purposes? Internal purposes? Provide explanations for your answers. The external purposes don't have a relation with the manufacturing overhead. cause the overhead is secret element in the company only internal purposes linked with it 7- Identify several cost drivers that Nidec Company might consider in allocating overhead using the ABC method of overhead allocation. Cost Drivers are the elements that make expenses be caused . a cost driver is an action that produce cost The product move from process to another , costs are moving with it . the process A cost be process B , process B costs are added to this cost , the result of it be process C and finally process C cost added to the combined A and B costs . then the cost became accumulated as production process and the expansion of the cost from progressive procedures decides the total cost [Marks: (8 marks each point) = …show more content…

The first quarter’s sales for the following year (2017) is expected to be 1400 units Materials $ 120,000 The company desires the ending balance in materials inventory to be 45% of the next quarter’s cost of materials. The cost of materials for the first quarter in the following year (2017) is expected to be $ 170,400 Required (1) As the company wants to hire a management accountant, the company wants to know more about management accounting. In light of the above, discuss the importance of management accounting for today’s business environment (12 marks) Management accountant is important for the following 1- Planning 2- Organizing 3- Securing Resources 4- Dealing with internal politics 5- Resolving conflicts (2) Based on the estimated information given above, prepare (i) Sales Budget Q1 Q2 Q3 Q4 Number of units 1000 1100 1200 1400 Selling price 500 500 500 500 Total sales budget 500000 550000 600000 650000 (ii) Production Budget Q1 Q2 Q3 Q$ Sales for cost/unit 1000 1100 1200 1300 Product ending inventory 275 300 325 350 Total production need 1275 1400 1525 1650 (beginning inventory) 200 275 300

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