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This is holmes institute assignment which is based on Background: You have been hired by the Board of Directors of your chosen company (ASX Listed) to explain how ABC model can improve the management accounting information available to its top management team (i.e. CEO and senior managers).

What is Required to do in this Assignment?

You are required to prepare a report to recommend about ABC model for your company.

Specification of Solution to HI5017 Managerial Accounting Assignment

 The present assignment HI5017 Managerial Accounting is provided by the Holmes Institute in the Trimester 1 2018 as an individual assignment. The assignment basically includes a business report that is prepared on the topic of ABC model of costing that is an integral part of management accounting studies. In this, the students are expected to choose an ASX listed company and show how the ABC model can help the company in improving the information related to management accounting that is available to the upper management of the company including the senior manager and the CEO of the company. The EBOS Company has been selected for the current assignment.

The report contains four sections. The first part of the business report provides a brief explanation with respect to the ABC model of costing and what are the different features of the model that are essential from organisation view point. The second part mainly relates to the chosen company i.e. the alignment of the EBOS group objectives and strategies with the ABC model. The sub parts explained in this section includes details of the mission and objectives of the company, the different corporate strategies and how the ABC model is helpful in attaining the respective strategies of the companies. The third part of the assignment deals with the recommendations that should be adopted for implementing the ABC model within the selected organization. The fourth part includes discussion regarding the variance analysis which is considered as another tool of management accounting that assists the company in taking suitable managerial decisions.

Thus, the assignment provides an in depth knowledge with respect to ABC model of costing which is among the best management accounting tools used by the organisations for exercising suitable management related control and how the organisations are benefitted from the usage of ABC model.

What to write in report part - check the table of content for solution file

  • ABC Model and its features
  • Alignment of ABC model with the current goals and strategies of the EBOS group limited company
  • Two (2) recommendations about the implementation of ABC model for your company based on your research findings.
  • Apart from ABC model, suggest one other management accounting tool suitable for your company and justify it.
  • References

What does mean of ABC model?

ABC model is generally a method of accounting that identifies the activities that entity operates in and then apportions indirect costs to the products. Activity Based Costing is basically a methodology of accounting utilized for allocating precisely the extent of resources devoted and the overhead cost incurred to manufacture a particular product or service on the ground of activities in relation to the value addition.

It is a matter of fact that some of the costs are difficult to assign by this particular cost accounting method. There are some indirect costs like salaries to management and salaries to the office staff which are difficult to assign to a particular product. And due to this particular reason, the concerned accounting method has identified and recognized its place in the manufacturing and production sector.

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