Management Accounting Report Assignment Sample

1.0 Case 1

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A. Management accounting report one major purpose to be designed for every manager

1. Mike Tanoto, CEO:

Report : Profitability Analysis Report

Frequency: Monthly

A detailed analysis is contained in this report of the profitability of the company which includes revenue, profits, and expenses. It will help Mike Tanoto regarding the financial performance of the company by providing valuable insight. It highlights weaknesses and strengths areas. An informed decision is going to be made through this report regarding the investment, budgeting, and allocation of resources.

2. Diane Wisdom, Controller

Report : Budget Variance Report

Frequency: Monthly

The actual results of finance are compared in this report with the amounts of budgeting. It provides budget variances detailed analysis to Diane Wisdom. Identifying the underspending and overspending areas provides help to her, and by this, she will be able to take the required corrective action (Zada & Yukun & Zada, 2021). The company must stay on track regarding its help is going to be provided through this report with its financial objective and goals.

3. Dora Chan, Purchasing Manager

Report : Inventory turnover report

Frequency: Quarterly

The analysis of the inventory turnover ratio of the company is provided to Dora Chan through this report. The practices of inventory management of the company in terms of efficiency will be assessed by her with the help of it (Dumay & La Torre & Farneti, 2019). It highlights obsolete inventory or slow-moving inventory.

4. Bill Sarimin, Production Manager

Report : Production Efficiency Report

Frequency: Weekly

A detailed analysis of production efficiency is provided to Bill Sarimin through this report. It includes throughput, machine utilization, and productivity of labor.

5. Angelo Yellow, Kayak Plant Manager

Report : Quality Control Report

Frequency: Daily

A detailed analysis of the quality of the product is provided to Angelo Yellow through this report.

B. Explanation and example of the relationship between five reports

Figure 1: Explanation and example of the relationship between five reports

(Source: In MS Word self created)

The mentioned five reports in part A of the Dubbo Canoe Ply Ltd are mentioned here. These are the Profitability Analysis Reports for Mike Tanoto who is the CEO. Budget Variance Report for the Diane Wisdom who is a Controller, Inventory Turnover Report for the Dora Chan who is a Purchasing Manager, Production Efficiency Report for the Bill Sarimin who is the Production Manager, and Quality Control Report for the Angelo Yellow who is the Kayak Plant Manager (Tsalis et al. 2020). There is interconnection and interrelation present in these reports and a major role is played by them in the company efficient operation. The examples regarding it are presented here regarding the way they are interrelated.

Regarding the financial performance of the company, an overview is presented through the profitability Analysis Report (Roychowdhury & Shroff & Verdi, 2019). To Dora Chan who is a Purchasing Manager the Inventory Turnover Report provides an analysis of the inventory turnover ratio of the company. The Quality Control Report helps Angelo Yellow, who is the Kayak Plant Manager with the product quality detailed analysis. It includes warranty claims, the company of the customer, and rates of the defect. The Budget Variance Report helps Diane Wisdom who is a Controller with a budget variance detailed analysis (Tabesh & Mousavidin & Hasani, 2019). The Production efficiency report helps Bill Sarimin, who is a Product Manager with the production efficiency detailed analysis. It includes throughput, utilization of machines, and labor productivity.

To the operational performance and financial performance these reports are related, and regarding the effectiveness and efficiency of the company they provide major insights. Through working together and reports analysis the informed decision can be made by the management team through which the success of the company will happen very easily.

2.0 Case 2

A. Cost of Goods Sold Schedule and Income Statement

The “cost of goods manufactured” is determined at $2130000, and the “cost of goods sold” is determined at $2168000.

The net income is determined as $3200.

B. The cost of goods manufactured and “Cost of goods sold” relationship

The “cost of goods sold” and the cost of goods manufactured are related closely and these are for the Sydney Manufacturing Ply Ltd is a major component. The total cost incurred by a company for product manufacturing in exact timeline of time is shown in the cost of goods manufactured schedule. It includes “manufacturing overhead”, “direct material”, and “direct labor”.

On the other side, the “cost of goods sold” presents the product cost that is by the company sold during a similar period (Dewi & Azam & Yusoff, 2019). It includes adjusting for the changes in finished goods inventory, and cost of goods manufactured.

That is why between these two the relationship that is present shows that from the “cost of goods sold” schedule, the “cost of goods sold” is determined (Saiz & Rovira, 2020). If it is mentioned in other words, that during the period the “cost of goods manufactured” is determined, that is put to use for the calculation of the “cost of goods sold”.

Reference list

Journal

• Dewi, N., Azam, S., & Yusoff, S. (2019). Factors influencing the information quality of local government financial statement and financial accountability.Management Science Letters,9(9), 1373-1384, retrieved from, http://growingscience.com/msl/Vol9/msl_2019_126.pdf [Retrieved on 19.3.2023]
• Dumay, J., La Torre, M., & Farneti, F. (2019). Developing trust through stewardship: Implications for intellectual capital, integrated reporting, and the EU Directive 2014/95/EU.Journal of Intellectual Capital,20(1), 11-39, retrieved from, https://e-tarjome.com/storage/panel/fileuploads/2019-12-09/1575883858_gh42.pdf [Retrieved on 15.3.2023]
• Roychowdhury, S., Shroff, N., & Verdi, R. S. (2019). The effects of financial reporting and disclosure on corporate investment: A review.Journal of Accounting and Economics,68(2-3), 101246, retrieved from, https://fardapaper.ir/mohavaha/uploads/2020/07/Fardapaper-The-effects-of-financial-reporting-and-disclosure-on-corporate-investment-A-review.pdf [Retrieved on 17.3.2023]
• Saiz-Rubio, V., & Rovira-Más, F. (2020). From smart farming towards agriculture 5.0: A review on crop data management.Agronomy,10(2), 207. retrieved from, https://www.mdpi.com/2073-4395/10/2/207/pdf [Retrieved on 20.3.2023]
• Tabesh, P., Mousavidin, E., & Hasani, S. (2019). Implementing big data strategies: A managerial perspective.Business Horizons,62(3), 347-358, retrieved from, https://www.researchgate.net/profile/Pooya-Tabesh/publication/331691114_Implementing_big_data_strategies_A_managerial_perspective/links/6067a6ac458515614d2e4dab/Implementing-big-data-strategies-A-managerial-perspective.pdf [Retrieved on 18.3.2023]
• Tsalis, T. A., Malamateniou, K. E., Koulouriotis, D., & Nikolaou, I. E. (2020). New challenges for corporate sustainability reporting: United Nations' 2030 Agenda for sustainable development and the sustainable development goals.Corporate Social Responsibility and Environmental Management,27(4), 1617-1629, retrieved from, https://www.researchgate.net/profile/Ioannis-Nikolaou-4/publication/339280820_New_challenges_for_corporate_sustainability_reporting_United_Nations'_2030_Agenda_for_sustainable_development_and_the_sustainable_development_goals/links/5e57ed314585152ce8f483ef/New-challenges-for-corporate-sustainability-reporting-United-Nations-2030-Agenda-for-sustainable-development-and-the-sustainable-development-goals.pdf [Retrieved on 16.3.2023]
• Zada, M., Yukun, C., & Zada, S. (2021). Effect of financial management practices on the development of small-to-medium size forest enterprises: Insight from Pakistan.GeoJournal,86, 1073-1088, retrieved from, https://www.researchgate.net/profile/Muhammad-Zada/publication/337520126_Effect_of_financial_management_practices_on_the_development_of_small-to-medium_size_forest_enterprises_insight_from_Pakistan/links/5e8ddf19a6fdcca789fe10b6/Effect-of-financial-management-practices-on-the-development-of-small-to-medium-size-forest-enterprises-insight-from-Pakistan.pdf [Retrieved on 14.3.2023]