Management Accounting assignment Example | Topics and Well Written Essays - 1250 words

Management Accounting - Assignment Example Cost is the most important factor which influences the management decision. The management needs to maximize its cost by different policies such as just in time, target costing etc but should not compromise on the products quality (Straus, 1989).. Target Costing: Target costing is one of the new costing techniques used by managers to minimize its cost effectively. Target costing is cost based pricing. Target costing enable the managers to manage the business most effectively in a competitive market place. It enables the managers to plan and manage the cost in the early stages of design and development cycle. Hence maximize the profit with no compromise on product. Target cost is selling price less desired profit. As in target costing the cost limit is specified first which may lead to omission of essential costs leading to loss. It can also be expected that the calculation of target cost is not accurate leading to mismanagement and increasing the risk of failure. This strategy requir es exclusive coordination and cooperation. This may reduce the quality of the products due to cheap components whose quality maybe inferior (Carlsson-Wall, 2011).  . Total Quality Management: Total quality management is a policy to continually improve the quality of products and processes. It is the management of organization’s all resources both human and material in most effective manner to achieve the objectives of the organization. In this the management uses the strategy of involving all the employees in the improvement of the quality of products and processes focusing on customer needs and their satisfaction. Customers are willing to pay high prices also for good quality products which the competitors are not providing them. The quality of processes can be improved by eliminating unnecessary steps resulting in efficiency of the processes and reducing the time wastage. All these improvements attract the customers towards our products and making the organization more pr ofitable by increased sales and good market share and repute (European Society For Organisational Excellence, 1990).  . The cost of introducing the concept of total quality management is high and staff needs to be trained without disrupting the process of production which may lead the organization to face loss by increasing the expense. The improvements process is continual which may not be maintained for many years. The employees maybe resistant to change leading to demotivation. Throughput Accounting: Throughput Accounting is a management approach. It provides managers with support for decision making for improving the organizations profitability. It is a process of identification of constraints for an organization in meeting their goals. Throughput focuses on generating more output unlike typical cost accounting approaches of cutting costs for maximizing the profit. It speeds up the rate of output by eliminating the constraints of the organizat

Coursework 1 Example | Topics and Well Written Essays - 1000 words

1 - Coursework Example 3. Using the data from the Venn Diagram below, 7 movies on DVD had fights but not explosions or car crashes. ( U = {movies on DVD collection}, C = {movies with car crashes}, F = {movies with fights}, E = {movies with explosions}) 4. (a) Since we have 3 sets in discussion, the membership table that we shall be using requires 23=8 rows. Each of these rows represents a unique combination of possible membership values. (1 = the element is a member of the corresponding set, 0 = the element is not a member) To find out if the two sets A U (B ∠© C) and A ∠© (B U C) are equal, we look at their corresponding columns and see if corresponding rows have the same values. The membership table clearly shows that the 5th and 7th columns do not have the same entries in corresponding rows, thus the two sets are not equal. This example seems to contradict the previous conjecture that A U (B ∠© C) and A ∠© (B U C) are not equal. However, as we can see from the membership table, this example simply illustrates one of the cases when the two sets are