Accounting & Costing for Business

BUSINESS MANAGEMENT, BUSINESS & HUMAN RESOURCES

BATCH 19

Supervised by Ms. Nilushi Gunarathne

Individual Assignment
3/13/21

S.A Niroshan Nalaka

Accounting and Costing for Business Individual Assignment

Assignment Brief

The management accounting system of any organization is the foundation of the internal
financial information system. Management needs a variety of information to plan, to control and
to make decisions. Information regarding the financial aspects of performance is provided by the
costing system. This assignment is designed to evaluate the knowledge on management
accounting concepts and their application.

i
Accounting and Costing for Business Individual Assignment

ii
Accounting and Costing for Business Individual Assignment

Executive Summery

In this report its main target is “Costing and Budgeting”. Costing methods that a company use
and Budgeting systems differentiations.

Firstly, as the Management Accountant of Rainco, I am happy to inform of our new product
launch. Since it’s a prototype we never reveal the price tag until its ready to sell to customers.

Mainly I explain about Budgeting and costing systems using examples. Then I explained the
difference between “Traditional and Zero-based” budgeting systems, and their differences.
Then I did absorption and marginal costing in the Calculations on profit and loss statements in
the month of May, in the XYZ limited products

After that I did the calculations of Mercury App

arel Limited. Then I prepared the all the budgets to the management of mercury apparel
Limited and the budgeting process.

Finally, I did the calculation of the variances in as much detail as possible and identify possible
causes for the variances of “Cinderella Limited”.

iii
Table of Contents
Assignment Brief..........................................................................................................................................i
Executive Summery.....................................................................................................................................ii
List of Illustrations.......................................................................................................................................0
Introduction.................................................................................................................................................1
List of Illustrations

Figure 1........................................................................................................................................................1
Figure 2........................................................................................................................................................2
Figure 3........................................................................................................................................................7
Figure 4........................................................................................................................................................8
Figure 5........................................................................................................................................................8

Table 1.........................................................................................................................................................3
Table 2.......................................................................................................................................................10
Table 3.......................................................................................................................................................11
Table 4.......................................................................................................................................................13
Table 5.......................................................................................................................................................18
Table 6.......................................................................................................................................................18
Table 7.......................................................................................................................................................19
Table 8.......................................................................................................................................................19
Table 9.......................................................................................................................................................20
Table 10.....................................................................................................................................................21
Accounting and Costing for Business Individual Assignment

Introduction

Batch 19 1