Homework answers / question archive /   Purpose: This assignment aims at developing your understanding of the purpose and use of management accounting systems, in particular costing systems, and its usefulness in aiding managers make informed decisions

  Purpose: This assignment aims at developing your understanding of the purpose and use of management accounting systems, in particular costing systems, and its usefulness in aiding managers make informed decisions

Accounting

Share With

Purpose:
This assignment aims at developing your understanding of the purpose and use of management accounting
systems, in particular costing systems, and its usefulness in aiding managers make informed decisions. You are
to critically evaluate the literature (using journal articles) to analyse the practical use of management
accounting systems by contemporary companies, in terms of their relevance to the real-life companies’
decision-making by managers and achievement of business goals.
Assignment Task: You are required to conduct a literature search and critically review a costing
system in this assignment.
Part A
Choose ONE of the costing systems studied in this unit from the list below, and answer the
questions that follow:
• Job Costing
• Process Costing
• Operation Costing (Hybrid Costing)
• Activity-based Costing (ABC)
Questions:
1. Briefly discuss the features of your chosen costing system. (3 marks)
2. Identify 2 specific Australian companies that your chosen costing system is suitable for, and explain why.
(3 marks)
3. Discuss two potential uses of the cost information for decision-making, to the managers in each of the 2
organisations selected in Q2 above. (3 marks)