How To Write Managerial Accounting Case Study?

We, at No 1 Assignment Help provider, guide students in the selection of effective planning among all the business plan alternatives that are available. This is carried out following the methods and concepts necessary for evaluation and control, as well as the forecasting performance of a proposed business, is called managerial accounting. Briefly speaking, accounting that does not follow any form of business law compared to financial accounting, and takes its own decision, and select business strategy formulation by own is considered as the managerial accounting.

This writing, assessment, and analysis of various concepts related to the proposed business activity to Managerial Accounting like cost concept, and application of accounting data for practical use with the help of two distinct categories. The first task is to advise the client and reply to their queries related to their business. The second action is linked with a critical analysis of the practical application of the role of managerial accounting by real-life companies. The primary purpose of the assessment is to inform the companies about managerial accounting for focussing on their targets.

 

Example Of A Good Managerial Accounting Case Study

 

 

Considering the case of a daycare business that is planned to be opened. According to the information available, a daycare center has been opened at home by a couple and needs to fulfill all the necessary formalities for expansion of the same. They can accommodate nine children with present facilities. As they plan to expand, the need to take advice from an accountant on expenses and costs involved.

 Different Types Of Costs Discussed In Cost Study Analysis

Nature of Cost associated with a daycare business: Any form of marketing has a cost implication of different categories, analysis of which is essential. From the information available, it was learned that the couple operates a daycare business that will expand. At the primary stage, analysis of cost plays an important role. The three discreet categories of costs that would be associated with the business of the couple are as follows:

Relevant Cost: The real cost impacts are the appropriate cost that will be needed in the future for the business decision is considered as a relevant cost. The cost is related to the management as it concentrates on only information that is beneficial in decision making and removal of other extraneous cost factors. The suitable cost for the daycare unit comprises the costs that have been linked with the cost associated with opening the daycare:

  • cost of appliances,
  • annual fees,
  • facility maintenance expenditure,
  • expenses incurred on staff and children’s food.

Irrelevant Cost: This category of cost never impacted by management decisions. However, irrelevant Costs related to a determination may be relevant. As the couple is in the daycare business already, expenses incurred due to change of law or annual license fee will not be applicable and hence irrelevant.

Sunk Cost: This is opposite to relevant cost and is the expenditure that cannot be avoided and has already been incurred. The decision of management has no impact on this cost.

Cost Relevant Decision To Buy Appliances

 

Advice on purchase of devices like – washing machine and dryer: This Cost may be considered as essential. Since the instrument for the laundry, washing machine is an essential item. The couple needs advice on whether it is affordable to them to purchase washer and dryer or to be outsourced to outside laundry or self-service.

Cost of purchase of appliances is a Relevant Information: Every form of business requires analysis of every cost factor that may impact the decision. Thus, while deciding to purchase a machine, they have to conduct a thorough research about the washer and dryer, related range of capacity required for using them, the models available, merits and demerits, and the cost associated. The relevant information for the accounting point of view is distributed, and the coast is related as per the life of the machine, and another one -time costs.

Purchase of appliances – Irrelevant Information: Related information about the associated cost is the cost of the energy bill that changes as per government regulation or water supply bill cost is considered irrelevant because the couple has to pay this and any the decision of the management will not replace these Costs, and the couple can do nothing about these costs.

We at No 1 Assignment Help provider, professionally help in selecting effective planning from all the business plan and related alternatives. Make the students available the following methods and concepts necessary for evaluation and control, as well as forecasting performance is called management accounting.

This writing is for assessment is the analysis of various concepts related to managerial accounting like cost concept and application of accounting data for practical use with the help of two distinct categories as an accountant. The first task is to advise the client to reply to their queries related to their business.

Based on the above, the purchase of washer and dryer although affordable, but considered expensive. Since the life of the machine has straight-line depreciation, the machine cost also consists of one-time expenses like installation cost and delivery charges. Even though this option is expensive, it is suggested that the couple goes for this option because the costs can be subdivided into eight years, and secondly, they are fixed expenses.

In case any MBA student wants to get a high grade in Managerial Accounting Case Study assignment by availing services of our at No 1 Assignment Help and guidance in writing Managerial Accounting Case Study, they are welcome.