Management Control & Accounting Essay Example | Topics and Well Written Essays - 1000 words

Management Control & news report - Essay ExampleThe costing can be improved by taking a incompatible approach such as activity-based costing. In activity based costing, activities regarding the factory overhead costs will be classified, and the costs will be broken down according to the level of activities. In this way, the wooing and effect between the overhead items in the factory overhead schedule and the activities will be more(prenominal) established, resulting in a more accurate costing.2. Athena Ltd is an engineering business doing work for its customers to their particular requirements and specifications. It determines the in full cost of each job taking a job costing approach, accounting for overheads on a departmental basis. It bases its prices to customers on this full cost figure. The business has two departments a machining department, where each job starts, and a fitting department, which completes all of the jobs. Machining department overheads are charged to jobs on a machine hours basis and those of the fitting department on a cypher labour hour basis. The budgeted information for contiguous year is as followsa) Prepare a statement showing the budgeted overheads for next year, analysed between the two departments. This should be in the form of three chromatography columns ane for the total figure for each type of overhead and one column each for the two departments, where each type of overhead is analysed between the two departments. Each column should also show the total overhead for the year. Please use the template below.c) Athena Ltd has been asked by a customer to specify the price that it will charge for a particular job that will, if the job goes ahead, be undertaken early next year. The job is expected to use direct material costing Athena Ltd 1200, to requirement 50 hours of machining time, 10 hours of Machine Department direct labour and 40 hours of Fitting Department direct labour. Athena Ltd charges a profit loading of 20 % to the full cost of jobs to determine the selling