Monday, September 9, 2019

Advance managerial accounting Report Essay Example | Topics and Well Written Essays - 500 words

Advance managerial accounting Report - Essay Example This implies that data turns into information for purposes of making decisions. In the same way, Ferrara’s article â€Å"21st Century Paradigm,† the focus is on cost especially concerning industrial engineering. When Ferrara says that the volume of activity is still a problem as fixed costs grow depending on variable costs, the main point is that profitability is dependent costs. Just like Drucker, Ferrara proposes that costs affect the number of products. This is what he refers to as activity costing. In the two articles, authors clearly bring out the issue of marginal changes ignoring the impact of accounting. Data, therefore, is imperative in the two cases for continuous improvement like cutting down on the selling over a period. At the final stage, Drucker and Ferrara establish that information is crucial in any accounting system, whereby it should deal with the two issues of assigning costs between and within product lines. The next articles as well focus on utilizing costs to make decisions. Cooper and Kaplan, for instance, examine how important products are critical in controlling the costs within the market. They, at first, agree with Ferrara that costs are becoming less variable. This implies that they are the dependent factors transferring products to be independent. Cooper and Kaplan reveal that most costs change depending on the shift and diversity of products within the economy as opposed to the number of products produced (Kaplan and Atkinson 2). With reference to what Drucker tries to bring to surface on accounting systems and information, Cooper and Kaplan tend to agree with him that conventional accounting systems make more products appear more expensive than they really are. The clearest point that brings all the articles together is that management decisions vary depending on the number of product complexity as opposed to the amount. Cooper and Kaplan as well

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