Managing Cost and Financial Plan Cost Accounting

Question: Describe about the Managing Cost and Financial Plan for Cost Accounting. Answer: Introduction A vivid description of the budget as well as the financial plan relating to the case study has been explicitly revealed in the overall report. The report has been accustomed by reflecting several tasks that entails the aspects of preparing budget as well as the respective operation to ensure the financial plan and the budget of the company. According top the sources preparation of the flexible budget along with mere justification of forecasting techniques has been assessed in this respective report. Moreover, the calculation of the respective variance has been ascertained so as to understand the feasibility regarding the budgeted features of the business. The overall importance of the financial management process has been ascertained in order to manage the money in order to determine effectiveness, efficiency, as well as reliability. 2: Two methods supporting the systems as well as resources: Person name and role in the team Details of their role Support or information you need to provide them Systems and resources required by this person to manage the financial processes Matt Hodgson Kurt Washington Cam Payne (Higher level management) Matt: is your main contact for issues and changes to process and budget. Provides support for all members of the caf and ensure systems and processes are in place for effective management Kurt: Manage all financial processes, invoices, payments, banking, and petty cash, accounts receivable and payable related to the manufacturing in conjunction with Hugh and Matt Hodgson. Help with compiling budgets in particular the accuracy of all financial documents Cam: All marketing and promotional events for the caf Monitor budget and expenses associated. Needs to be able to assess the success of promotional activities. All the budgeting techniques have to be provided to maintain the budget. Effective calculations has been entailed to understand the feasibility. Maintenance of cash and its equivalents so as to generate the tax effects for the company. Analysis of the variance has to be maintained so as to ensure the exact profit as well as loss for the company. Information regarding the marking activities performed by the company are required. What will be the specification to enhance the profitability and selling activities has to be assessed. The budgeting tools has been required to operate the cash and its simultaneous expenses. Maintaining every transaction through the help of tablet and personal computers in order to check the operations. Tools for maintaining the cashbook is required. The analysis regarding the petty cash book is required. Ledger balances have to be maintained. Analysis of cash budget has to be ascertained. Application of number of marketing personnel so as to maintain the promotional activities. Event management with advertising the overall application is necessary. Jerry Aitken (Purchasing) Main contact for current pricing all orders to go through Jerry. He needs to communicate immediate changes to stock and issues related to price and supply. There needs to be a good relationship with recordkeeping and flow of information regarding costs. According to this perception, Jerry must require respective devices so as to contact the team. Accessibility of internal portal and mailing system so as to generate the viability of an effective communication. Jerry will have to maintain the respective purchase invoice so as to maintain the viability of stock. So the cost sheet is an essential item to cumulate the observation of respective cost required in the factory. Systems line personal computers or tablets are required to check the stock that have been issued or dispatched from the respective factory. Work team Involved in meeting targets and taking initiatives to manage costs and improve efficiency. Information regarding the total prime cost of the goods has to be entailed. Application of knowing the actual perception of goods to be sold and the products sent to the delivery department as finished goods. Respective accountability regarding the cost structure with accounting sheet is needed. Oder supply management tool should be implemented so as to understand the delivery system. 3. a. After the preparation of the budget, the analysis regarding the actual expenses and the cost has been observed through effective monitoring as well as reporting. The team should forecast the activities that can be entailed in the next financial period. Revising the actual internal budget which will allocate the total exponents so as to enhance the feasibility. Tracking the capital expenditure can be determined as one of the influential impact on the budgeting analysis (Brigham, 2013). The application on the basis of zero based budgeting process has to effectively managed in order to monitor on all the income and expenses. The performance of the first loaded budget has also determined the application of the different consideration to gather the effectiveness of the business. Moreover, the spending made in the last month income budget can be determined as one of the significant process to control the operation. 2: The application of the journal, ledger as well as the trial balance of the company will use to determine the monitoring perspectives. Moreover, the statement of cash flow can be easily entailed to monitor the expenses as well as controlling the cost. 3: A budget variance is the difference between planned and actual performance. Managers monitor variances to make sure that costs do not run out of control, profit targets are kept in mind, and to identify circumstances where the business strategies might need to be reviewed. Budget Variance Formula STEP ONE: Calculate the variances. The formula for this is: VARIANCE = ACTUAL BUDGET STEP TWO: calculating the percentage (%) variance %VARIANCE = ACTUAL BUDGET Then dividing this figure by BUDGET and multiplying by 100 we will get the % variance. The reason why budget variances is important for a manager is because it gives a way for them to keep a plan on track and if things change their easily able to adjust the plan. 4. (a) Monthly budget monitoring cycle is appropriate because the overall cost of sales can be assessed whether it has been decreased or increased. Cash budget can alternatively used so as to consider the approach of monitoring the budget. b) The data can be collected through the respective financial statements of the company as well as the different day books maintained by the company. c) The reason for using the spreadsheets for the budget is because the errors can be edited without any discrepancies and the calculations can be easily done. Moreover, on the contrary, the respective spreadsheet does not contain formatting tools that will easily detect the forecasting abilities and help to assess the financial speculation. 5. Forecast Budgeted units sold Actual Units sold Variance units sold % variance on units sold Budgeted income Actual income Variance income % variance on income Budgeted total costs Actual total op costs Variance Costs % variance on costs Gross Profit Gross Profit Ratio (%) October 900 500 -400 -44.44 $ 9,900 $ 5,550 $-4,350 -43.9 $ 6,660 $ 3,475 $ -3,185 -47.8 $2,075 37.4 November 900 550 -350 -38.89 $ 9,900 $ 6,105 $-3,795 -38.3 $ 6,660 $ 4,070 $ -2,590 -38.9 $2,035 33.3 December 900 950 50 5.56 $ 9,990 $ 10,545 $ 555 5.6 $ 6,660 $ 7,030 $ 370 5.556 $3,515 33.3 January 680 550 -130 -19.12 $ 7,548 $6,105 $-1,443 -19.1 $ 5,032 $ 4,070 $ -962 -19.1 $2,035 33.3 February 680 720 40 5.88 $ 7,548 $7,992 $ 444 5.9 $ 5,032 $ 5,328 $ 296 5.882 $2,664 33.3 March 680 750 70 10.29 $ 7,548 $8,325 $ 777 10.3 $ 5,032 $ 5,550 $ 518 10.29 $2,775 33.3 Units sold Budgeted WS units sold Actual WS units sold Budgeted In house use units Actual In house use units Budgeted units sold total Actual items sold total October 650 460 40 40 500 500 November 650 510 40 40 900 550 December 650 870 50 80 900 950 January 680 510 40 40 680 550 February 600 530 90 60 600 590 6. Yes, it can be said that the overall ideas regarding the management team is better enough to secure the gross profit. Hence, it can be said that the company will surely attain the desired financial outcome so as to enhance the financial speculation of making a gross profit at 37% or more. Implementation of cost cutting techniques has to be maintained in order to control the operation so that the financial stability of the company can be justified. In accordance with the respective variance analysis, the significant consideration regarding this approach has been ascertained from the criteria that can be generated through the activities of cost controlling measurement. This will suffice eh operation of maintaining the perception of business profit in the long run (Kaplan Atkinson, 2015). 4. Documents like stamen of financial position, statement of cash flow and statement of income can segregate the perception of considering the approach of collection as well as collation of the data. Therefore, the perception of financial position helps to understand the current financial stability of the firm. Apart from this, the financial constraints have helped to consider the approach of overall cash flow that helps to monitor the budget. The respective statement of income has felicitated the impact regarding the effective control of performance in order to justify the basic standpoint for revealing the perception of different aptitudes. Thu sthe basic impact of gods and 2. a) GST Calculation Wholesale Cost GST amount Current wholesale cost $11.10 $ 1.11 Proposed wholesale cost $12.77 $ 1.277 Variance $ $1.67 $ 0.167 Goods and Service tax has been rounded at 10% b) It has to be lodged a form naming business activity to the Australian Taxation Office. The number of times the business has been established will generate the perception of lodging the GST bill so as to pay the tax to Australian Taxation Office. 3. a) From the observation it can be said that the maintain the day book will always assure the proprietor to ascertain the overall loss of the project. Therefore the loss has simultaneously checked so as to control the basic calculations as well as the recordings. Thus the petty expenses are ought to be recorded in the petty cash book which will sur4ely suffice the operation to control the business perspectives (Eldenburg Wolcott, 2015). b) Aligning the financial management process will definitely reveal the clarity of key rivers in the business. Moreover, the tools will also help to assess the measurement and also help to monitor the performance of the firm. This will surely lead the profitability of the firm. Conclusion: It can be said from the overall assumption that monitoring the budget is necessary to ascertain better financial growth in the long run. Thus, the perception of maintaining the business is very much necessary in controlling the operation. Thus the enhanced profitability can be achieved from this particular facilities in order to derive the factors of controlling the overall perspectives. References Brealey, R., Myers, S. (2015). FUNDAMENTALSOFCORPO-RATEFINANCE7/e. DRURY, C. M. (2013).Management and cost accounting. Springer. Getz, D. (2014).Event management event tourism(pp. 212-215). New York: Cognizant Communication Corporation. Stock, J. R., Lambert, D. M. (2011).Strategic logistics management(Vol. 4). Boston, MA: McGraw-Hill/Irwin. Brigham, E. F. (2013).Financial management: theory practice. Atlantic Publishers Distri. Kaplan, R. S., Atkinson, A. A. (2015).Advanced management accounting. PHI Learning. Horngren, C. T., Bhimani, A., Srikant M.. 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