Question

What is the type of managerial accounting (BSC, JIT, TC) system or tool declared and what do you know about it?

for Aramex company

Answer 1

Type of Managerial Accounting: -

1.) Just in Time(JIT): - Its is a management accounting system in which goods received on appropriate time when it is needed for consumption. Say for example, we need 10 tons of cement on Tuesday, we will received 10 tons of cement on tuesday. It reduces organisations storage cost and working capital also. Organisations are adopting these systems to minimise cost which will result in higher margin or they wll pass on the benefit to customers.

2.) Traditional Costing (TC): - It is old way of calculating cost of products. All the costs which have incurred in the organisations are added to the cost of production of products whether any cost incurred in respect of that product or not. It 's a very vague way of calculating costs. A cost should be apportioned to the products only when cost has occurred in respect of it. This menthod doesn't show proper cost of products because all the cost have been added irrespective of its occurence in respect of that product, which in turn leads to wrong cost of procucts and in turn we set wrong selling price of it. Nowadays, every organisations use Activity Based Costing(ABC). It apportion cost only when cost is incurred in respect to products. Through it we get proper cost of products and can set proper selling price of it.

3.) Balance Score Card(BSC): - The Balanced Scorecard, referred to as the BSC, is a framework to implement and manage strategy. It links a vision to strategic objectives, measures, targets, and initiatives. It balances financial measures with performance measures and objectives related to all other parts of the organisation. It is a business performance management tool.