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Done-Productivity Unit-2 Managerial Accounting
Done-Productivity Unit-2 Managerial Accounting
Managerial Accounting
In this chapter we covered and understand the following topics with the real life example like
financial statement from one of the big companies of the world Bata Shoes Company which is
clear the details manufacturing costs including general, and administrative (SG&A) costs. This
will help me in future in case I work for any manufacturing company in the finance or
accounting department in a managerial or AGM role then I can control and manage production/
manufacturing costs efficiently and effectively. But currently I am working for development
sector where we ususally spent grant money so this knowledge may not be applicable for me at
From the discussion my take away is that same topics we presented here in such a diversified
way that I can clearly understand what my understanding gap is and what I need to be improved.
According to our learning objective now able to explain the main three types of manufacturing
costs (direct, indirect, and overhead) and their cost behaviors (variable, fixed, or mixed). Also
able to determine how business costs would be categorized under each cost behavior and type.
Not only that but also can explain the three cost methods and the types of businesses that would
likely utilize each method as a results can compare and contrast different cost methods and
etc
Portfolio Activity Unit-2
Managerial Accounting
Other than manufacturing costs this specific types of SG&A costs would the company incur
which is also part of the manufacturing costs. Because to run the company need employees and
then need to maintain the benefits of the employee as well. Namely all the following expenses is
the mandatory part of the manufacturing company which is included with each of the product
Remuneration to employees, Health and other welfare expenses, Travelling expenses, Bank
charges, Repairs and maintenance, Stationery, Postage, telegram and telephone, Entertainment
expenses, Subscription and donation, Advertisement, Selling expenses, Rent, rates and taxes,
General charges, Directors' fees, Auditors' fees, Legal and other professional fees, Insurance,
Land revenue Freight and transport, Packing expenses Commission, Royalty on Hush Puppies
Brand, Royalty on Dr. Scholl Brand, Royalty on Naturalizer Brand, Royalty on Ben10 and,
Powerpuff Girls, Global Footwear Services fees, Trade mark license fees, IT fees, Electricity,
Depreciation.
variable cost component.
business, within the relevant period. For example, a retailer must pay rent and utility bills
irrespective of sales.
system is used when the various items produced are sufficiently different from each other
and each has a significant cost. (When a company's output consists of continuous flows
services rendered are tailored to customers' needs. Due to customized services, the
resources used for different customers will differ in variety and quantity.
Process costing is a term used in cost accounting to describe one method for collecting
Time to use: A processing cost system is used when nearly identical units are mass
produced. Process costing is the optimal system for a company to use when the
individual product.
Activity-based costing (ABC) is a method of assigning overhead and indirect costs such
The ABC system of cost accounting is based on activities, which are considered any
Time to use: ABC is used to get a better grasp on costs, allowing companies to form a
References
https://www.batabd.com/pages/financial-info
https://opentextbc.ca/principlesofaccountingv2openstax/chapter/compare-and-contrast-
traditional-and-activity-based-costing-systems/
https://www.investopedia.com/terms/a/abc.asp
https://www.accountingcoach.com/terms/J/job-order-costing
https://www.chegg.com/homework-help/job-order-costing-appropriate-types-businesses-use-
chapter-1-problem-32q-solution-9781133712701-exc
https://opentextbc.ca/principlesofaccountingv2openstax/chapter/compare-and-contrast-job-order-
costing-and-process-costing-2/