Managment and Cost Accounting Essay Example | Topics and Well Written Essays - 2000 words

Managment and Cost business relationship - Essay ExampleSince the costs of direct material and overheads argon not determined accurately, there is a big risk that familiarity might not produce competitive bids and unreasonably high prices are quoted to the insurance company. Therefore it is highly recommended that firstly the entity should classify accurately the costs associated with the product into fixed and variable. Secondly, factual charge is (should be) take awayed rather than standard costs, as it should be able to measure its actual cost of production.It is recommended that entity should consider using marginal costing method as it go out allow the counseling to derive much relevant & important information for the purpose of decision-making. Information such as Contribution per unit, Break even off Sales (in units & value), Net Profit per unit and total can be of significant value to the management.In the era where companies are moving towards modern and world class business principles and reporting methodologies, there has been, since tierce decades, a significant debate on the validity of traditional absorption costing method in todays decision making process. What are relevant costs when taking decisions relating to increasing the speeding of operating cycle and what are costs that are relevant solely when consideration is given to company objectives, goals and strategies? (Samford University, School of Business, Birmingham, Alabama, USA) We at William & Co. Consultants have made a feasibility study on the implications and benefits of implementing throughput accounting at BITE ME.Throughput Accounting provides managers with a fresh set of eyes to identify and control bottlenecks. The drum, buffer, and rope will become part of the cost accounting lexicon in the future, says Geoffrey Garland, Controller, StacoSwitch, Inc. (Steven Bragg).Throughput Accounting (TA) is a comprehensive management accounting approach which provides decision suppo rt information to managers