Cost allocation is an extensively used practice in virtually every organization and in nearly every facet of accounting (Harris K., Curry W.,1997 Cost Accounting Prentice Hall 9th edition). Cost allocation is defined as a method of assigning and reassigning of a cost to one or more cost objectives (Horngren and Foster, 1987). The major reason for adopting this practice is concerned with "best" decision making for managers. These decisions may not necessarily be seen as profit-maximizing (Woul...
If I were Dr. Mitchell, first thing that I would recommend to the caller is suggest him go back to his office, and to search and collect all the appropriate and related evidences on the transactions which are in question. The searching can help the caller in the best knowledge to confirm that, there is a clearly inadequately to the inclusion of those transactions in the first quarter of financial statements. The caller could gather all the actual accounting entries documentation which have re...
According to the Robert Camp definition on benchmarking, its the search for company best practices which will lead to superior performance. The article has highlighted the importance of benchmarking practice which leads to continuous improvement in the organization performance. Moreover the authors mentioned the important of five steps in benchmarking such as: What to benchmark Select benchmarking partner Collect data and analyze it Goals for improvement Implement and monitor Benchmarking pra...
Introduction Johnson and Kaplan (1987), the writers of Relevance Lost: The Rise and Fall of Management Accounting have addressed the problems aroused from the application of Traditional Costing System (hereafter, TCS). 1.1 Criticism on Traditional Costing The TCS as being criticized by the stated authors, is said to be giving wrong signaled to the managers. As the consequences, the managers wrongly promote the sale and expansion of products that do not contributes much profit to the company. ...
According to Companies Act 1965 Section 174, auditor should perform the following duties, Statutory Duties. Auditor should examine and form an opinion whether the financial statements compliance the financial reporting standards of Malaysia and the Companies Act 1965. Duty to carry out audit. Auditor should examine and form an opinion whether the financial statements give a true and fair view of the financial position of the Company as of the financial year end and of its financial performanc...
A Management Accounting Report On NEXT This report is meant to explain the importance of management accounting and its relevance to a business. It takes a look at the performance of s at the performance of the company of choice is NEXT and this report would assist in the management of the company in achieving long term and short term objectives. BACKGROUND Next is one of UK's leading retailers based in Enderby, Leicester that offers trendy and high quality clothing and accessories for men, wo...
The word of 'INDEPENDENCE' is defined as 'freedom from situations and relationships which make it probable that a reasonable and informed third party would conclude that objectivity either is impaired or could be impaired.' (Anon, www.europeanlawyer.co.uk) [Online] There are 2 types of independence, that are independence of mind and independence in appearance: Independence of mind The state of mind that permits the expression of a conclusion without being affected by influences that compromis...
Nowadays, it is becoming increasingly difficult to ignore the concept of Internal Audit in the business world. Among the well known definitions of IA, there is the Institute of Internal Auditors (IIA) (2009) which defined it as: "An independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of ...
The Accounting Structure According to American Institute of Certified Public Accounts, "Accounting is the art of recording, classifying and summarising, in a significant manner, and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof." Accounting is concerned with the analysis and interpretation of the recorded accounting information. OBJECTIVES OF ACCOUNTING: The main objectives of accounting are: To maintain a...
In the winter months, you will often find college students wearing parkas, pullovers, or long-sleeved t-shirts that sport the North Face label. Over the past four decades, North Face has established itself as a leading supplier of apparel for "run-of-the-mill" outdoors "types." The company also markets a wide range of apparel and sporting gear for more adventurous souls including mountain climbers, whitewater daredevils, ski bums, and the like. Despite North Face's prominence in the two marke...
