Question

Management accounting and history. Taking the Roman Coliseum as an example, describe how modern cost management accounting could be applied to a current attempt to recreate this structure. Be creative in your discussion (about 200 - 300 words). Add images to your answer.

Answer 1

Cost management accounting is the systematic approach of recording, classifying and summarizing different type of cost transactions involved in any project so as to undertake effective decision making regarding in relation to such project. This type of accounting is mainly aimed at improving the overall profitability of the project by managing its cost and related expenses. As cost management accounting is in existence since long time, it has evolved significantly with the modern techniques that can not only manage and control the cost of a project but also facilitates improved decision making.

All the giant buildings and structures that exist in the world today required huge cost incurrence for their creation. So is the Roman Coliseum, which is the old monumental structure that was erected in 73-75 AD. The building of Roman Coliseum involved huge cost for its erection which is not exactly known yet. The project took long years to bring into existence the Coliseum. In ancient times, there were conventional cost accounting techniques to be deployed in the projects to determine the cost involved. The traditional techniques of cost accounting were not sufficient enough to serve the whole purpose.

However, the recent era has brought significant developments in the techniques and approaches of cost management accounting. The contemporary techniques of cost management accounting such as Pareto Analysis, Activity based costing, Just in time, throughput accounting can help in recreation of giant structures like Roman Coliseum. Pareto analysis can lead to selection of those limited tasks that have the potential of producing significant effect at overall basis. The selection will help in focusing on the key tasks. ABC will enable the appropriate allocation of overall cost involved in the restructuring of building so as to determine the true profitability of the project. Just in time approach will help in managing the stock requirement by eliminating excessive costs of holding inventory. Throughput accounting will support the determination of resource constraints that hinders the better performance of project.

Cost management accounting is the systematic approach of recording, classifying and summarizing different type of cost transactions involved in any project so as to undertake effective decision making regarding in relation to such project. This type of accounting is mainly aimed at improving the overall profitability of the project by managing its cost and related expenses. As cost management accounting is in existence since long time, it has evolved significantly with the modern techniques that can not only manage and control the cost of a project but also facilitates improved decision making.

All the giant buildings and structures that exist in the world today required huge cost incurrence for their creation. So is the Roman Coliseum, which is the old monumental structure that was erected in 73-75 AD. The building of Roman Coliseum involved huge cost for its erection which is not exactly known yet. The project took long years to bring into existence the Coliseum. In ancient times, there were conventional cost accounting techniques to be deployed in the projects to determine the cost involved. The traditional techniques of cost accounting were not sufficient enough to serve the whole purpose.

However, the recent era has brought significant developments in the techniques and approaches of cost management accounting. The contemporary techniques of cost management accounting such as Pareto Analysis, Activity based costing, Just in time, throughput accounting can help in recreation of giant structures like Roman Coliseum. Pareto analysis can lead to selection of those limited tasks that have the potential of producing significant effect at overall basis. The selection will help in focusing on the key tasks. ABC will enable the appropriate allocation of overall cost involved in the restructuring of building so as to determine the true profitability of the project. Just in time approach will help in managing the stock requirement by eliminating excessive costs of holding inventory. Throughput accounting will support the determination of resource constraints that hinders the better performance of project.