Management Accounting assignment Example | Topics and Well Written Essays - 1250 words

Management report - Assignment ExampleCost is the almost important calculate which influences the management decision. The management needs to maximize its cost by different policies such as vertical in time, target costing etc but should not compromise on the products timber (Straus, 1989).. marking be Target costing is one of the new costing techniques used by managers to minimize its cost efficaciously. Target costing is cost based pricing. Target costing enable the managers to manage the business most effectively in a competitive market place. It enables the managers to plan and manage the cost in the early stages of practice and development cycle. Hence maximize the profit with no compromise on product. Target cost is selling price less desired profit. As in target costing the cost limit is condition first which may lead to omission of essential costs leading to loss. It can also be expected that the calculation of target cost is not accurate leading to mismanagement and increasing the find of failure. This strategy requires exclusive coordination and cooperation. This may reduce the quality of the products due to cheap components whose quality maybe subordinate (Carlsson-Wall, 2011).. Total Quality Management Total quality management is a policy to continually make better the quality of products and processes. It is the management of nerves all resources both human and material in most effective manner to achieve the objectives of the organization. In this the management uses the strategy of involving all the employees in the improvement of the quality of products and processes focusing on customer needs and their satisfaction. Customers are willing to pay high prices also for great quality products which the competitors are not providing them. The quality of processes can be improved by eliminating unnecessary go resulting in efficiency of the processes and reducing the time wastage. All these improvements attract the customers towards our products and making the organization more advantageous by increased sales and good market share and repute (European Society For Organisational Excellence, 1990).. The cost of introducing the belief of total quality management is high and staff needs to be trained without disrupting the process of output which may lead the organization to face loss by increasing the expense. The improvements process is continual which may not be maintained for many years. The employees maybe resistant to change leading to demotivation. Throughput Accounting Throughput Accounting is a management approach. It provides managers with support for decision making for improving the organizations profitability. It is a process of identification of constraints for an organization in meeting their goals. Throughput focuses on generating more output unlike typical cost accounting approaches of sideslip costs for maximizing the profit. It speeds up the rate of output by eliminating the constraints of th e organizat