You are a Management Accounting Intern, at XYZ Tools Private Limited, a newly set-up, small manufacturer of custom

You are a Management Accounting Intern, at XYZ Tools Private Limited, a newly set-up, small manufacturer of custom designed and developed precision tools, for large machine shops. Being in the jobbing business, the company bids for jobs and executes them. Currently it captures costs by department and accounts for stores and raw material inventories.

Your role is to suggest improvements to the Cost Accounting system. You are about to make a recommendation to introduce a Product Costing System. When you sound out the Financial Controller, he says, “We have just one Accountant and I think introducing a product costing system is a complete waste of time”

Write a short justification, identifying four reasons for your recommendation.

Expert Solution

Through a present instance, the firm is engaged in such a business in which it produces numerous different saws and equipment, in which the availability of products included would be very high so that it will not be reasonable to adopt the departmental costing method. As per the recommendation made by a new intern, the aforementioned product-based product will have additional features,

1) Product wise benefits can be ascertained easily.

2) Items having lower profits or losses may be discarded and items with increased margins may well be maintained;

3) Precision on the prices and revenues of the product should be developed such that prices can be minimized in order to increase the profit;

4) Assists with the decision-making process.

That is why it would be evident for the company to adopt product costing and assign the costing process to other employees.

Through a present instance, the firm is engaged in such a business in which it produces numerous different saws and equipment

Junaid answered 2 years ago

TAX Main Assignment: Your client is planning to set up an investment company (private limited) in...

TAX Main Assignment: Your client is planning to set up an investment company (private limited) in Singapore in mid 2018. Their funds will be invested in shares of public listed companies and also on real properties. But they are in a dilemma on whether to set up an investment holding or investment dealing company. Some of your client’s friends have prompted that the tax treatment between the two are different. However your client’s intention is to minimise their tax obligations...

Kingbird Company, a manufacturer of small tools, provided the following information from its accounting records for...

Kingbird Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2020. Inventory at December 31, 2020 (based on physical count of goods in Kingbird’s plant, at cost, on December 31, 2020) $1,419,220 Accounts payable at December 31, 2020 1,295,400 Net sales (sales less sales returns) 8,926,300 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31,...

Sunland Company, a manufacturer of small tools, provided the following information from its accounting records for...

Sunland Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2020. Inventory at December 31, 2020 (based on physical count of goods in Sunland’s plant, at cost, on December 31, 2020) $1,467,950 Accounts payable at December 31, 2020 1,182,000 Net sales (sales less sales returns) 7,990,400 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31,...

Culver Company, a manufacturer of small tools, provided the following information from its accounting records for...

Culver Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2017. Inventory at December 31, 2017 (based on physical count of goods in Culver’s plant, at cost, on December 31, 2017) $1,594,780 Accounts payable at December 31, 2017 1,165,100 Net sales (sales less sales returns) 8,629,100 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31,...

Describe into detail how to set up and design a cost and management accounting systems bearing...

Describe into detail how to set up and design a cost and management accounting systems bearing in mind costing methods and techniques in cost ascertainment for a business. Which will ultimately help the business entity in costing and pricing of its products/services. Select a business of your choice

You are a small biotechnology firm and need the financialsupport and the set-up to perform...

You are a small biotechnology firm and need the financial support and the set-up to perform clinical trials on your formulas, what might be your best, and least risky, source of funding? Why?

You are about to set up a small business in the community service sector.

You are about to set up a small business in the community service sector. Consider the organisation's objectives and write a 3 page paper outlining the professional and ethical standards to which your organisation would adhere. Use your imagination to fill any caps.What external influences and data would inform the expectations you might have of your employees?Explain how you ensure that the employees working in the organisation continuously upgrade their skills and how would determine the developmental needs of your...

You have been hired as an IT expert by a small firm to set up an...

You have been hired as an IT expert by a small firm to set up an office for 20 staff members, half of whom will work with desktop computers and the remaining with laptop computers using wireless networks. The office would use one networked laser printer, accessible from both the desktop and laptop computers. The desktop computers will use a wired network, while the laptop computers will employ a wireless network to print and access the internet. Start making a...

You are going to set up a small shopping system, where you are going to implement...

You are going to set up a small shopping system, where you are going to implement a "shopping bag" subject to the following specifications: Each item that will be placed in the bag needs three pieces of data included: a descriptive name, an item code (2 letters followed by two numbers), and price (in US dollars). You will implement items as a separate class, where these three properties are private, and there are mutators and accessors for all three properties,...

As per child care, You are about to set up a small business in the community...

As per child care, You are about to set up a small business in the community services sector. Consider the organisation’s objectives and write a 3 page paper outlining the professional and ethical standards to which your organisation would adhere. Use your imagination to fill any gaps. What external influences and data would inform the expectations you might have of your employees? Explain how you would ensure that the employees working in the organisation continuously upgrade their skills and how...

Question