Management Accounting for Cadbury Schweppes plc Case Study

Management Accounting for Cadbury Schweppes plc - Case Study Example The most important information requirements which could aid the managers of the business include the information that are related to issues like planning & decision making, monitoring the business performance, building and maintaining a competitive advantage. In planning and decision making the managers are guided to what will produce the attainment of the companies’ corporate financial objectives. Planning is not only limited to day to day operation of the business but also how the business maximizes its revenues and profits and many areas of its operation. Updated information of revenues and expense accounts of the company are therefore very relevant for the company managers to effectively plan and make decision. Revenue accounts refer to accounts as a result of delivering goods and services to clients. Expense accounts include the cost of production like direct labour cost, raw materials and the factory over head associate with production. Monitoring the business performance presupposes knowledge of data of measurements that would tell managers whether they are accomplishing their objectives are not. The financial information on revenues, expense, assets and liabilities are therefore relevant information for the company to effectively have monitoring activities. The following are the chosen methods or techniques: Budgeting, Variance Analysis, Absorption Based Costing and Cost Volume Profit Analysis. Budgeting techniques is applicable to the information needs of company. ... requirements which could aid the managers of the business include the information that are related to issues like planning & decision making, monitoring the business performance, building and maintaining a competitive advantage.In planning and decision making the managers are guided to what will produce the attainment of the companies' corporate financial objectives. Planning is not only limited to day to day operation of the business but also how the business maximizes its revenues and profits and many areas of its operation. Updated information of revenues and expense accounts of the company are therefore very relevant for the company managers to effectively plan and make decision. Revenue accounts refer to accounts as a result of delivering goods and services to clients. Expense accounts include the cost of production like direct labour cost, raw materials and the factory over head associate with production.Monitoring the business performance presupposes knowledge of data of measu rements that would tell managers whether they are accomplishing their objectives are not. The financial information on revenues, expense, assets and liabilities are therefore relevant information for the company to effectively have monitoring activities. 2.1.2 The four suitable costing and management accounting methods/techniques applicable to the information needs earlier identified. The following are the chosen methods or techniques: Budgeting, Variance Analysis, Absorption Based Costing and Cost Volume Profit Analysis.Budgeting techniques is applicable to the information needs of company for activities like planning & decision making and monitoring the business performance of the company. A budget includes revenues and accounts that are projected

Discussion questions Essay Example | Topics and Well Written Essays - 250 words - 4

Discussion questions - Essay Example Merchandise inventory is the asset of the business and records movement in the cost of inventory and reports opening and ending inventory value held by the business. Entry into this journal is a debit entry whereas exist from this is a credit entry. This records the cost of purchase include suppliers price plus freight costs and insurance. Whereas, cost of merchandise sold is the cost of the business charged against revenues. Cost of merchandise is calculated as beginning inventory plus purchases less closing inventory. Journal entries to record the transaction would be as follows: a. Gross profit is calculated by deducting the cost of sales (merchandise) from the revenues generated by the business. Revenues are typically cost of sales plus the profit margin decided by the business. a. The role of accounting is not limited to recording of transactions but it is an integral part of planning and strategy development carried out by businesses. Assembling data generated by different business functions in order to summarize and report information pertaining to the business condition is primary task of the accounting function. Accounting is therefore considered as a series of processes which generate different information for various use including financial information, managerial information, cost information, and information for tax purposes (Warren, Reeve, & Duchac, 2012). Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). Financial Accounting, Study Guide. Hoboken, NJ: John Wiley & Sons. Retrieved from McGraw Hill: