MANAGEMENT ACCOUNTING

Management Accounting

Management Accounting

Introduction

The business orientation of Bega Cheese Ltd includes structures of lining and staffing as the enterprise forms an organizational structure maintain all the activities to survive in the business sector. There are three main features: marketing, production, and finance. The running specifications of the organization are collectively referred through the management control, which is commonly played by the staff or advisory functions. In this process, the combination is formed by personnel, accounting, purchasing, and receiving (Compton, 1996, 20). Bega Cheese has a reporting and communication system (e.g. budgeting) which allows them to coordinate the interface of the various line functions by the staff and department. Moreover, the setting in which the Bega Cheese operates includes stakeholders that are associated with the company. These stakeholders mainly include investors, government, suppliers, accountants etc.

In order to facilitate the management personnel, management accounting plays an important role due to its familiarization with the implementation of the following management tasks: planning, organizing, directing, control, and decision-making. Every organization's main goal is to achieve satisfactory financial results and similar is the case with Bega Cheese Ltd, as its prime focus is to achieve a topnotch score in maintaining its financial growth.

Discussion

If a business is financially successful, it is due to effective and efficient management and techniques that support the strategic planning for the organization. Efficiency is a research and investment resource that helps affecting the profitability of the management accounting methods and output products produced by the labor time that numbers between effectiveness, in order to maintain good relations of cooperation to achieve its goals (for example, plans sale value) of the actual sales value (Kaplan, 2007). This study provides an opportunity to the efficient and effective management accounting tool for successful implementation of the businesses. This study will examine the level of management accounting practices for the Australian manufacturing concern. It will explore the relationship between environmental factors and their management accounting practice and hence will allow them to initiate a new management accounting system for the organization's betterment.

Activity Based Costing

Bega Cheese Ltd will opt for (ABC) Activity Based Costing model, as it is a separate contract or organizationally part of the company. The process carries out separate functions or elementary economic process. The concept of the ABC is that it identifies the areas of activity that does not necessarily coincide with the organizational structure of the company. As ...