Activity Based Costing and Master Budgeting Bibliography

Activity Based Costing and Master Budgeting Bibliography

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Activity Based Costing and Master Budgeting Bibliography

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Discussion: Activity-Based Costing (ABC) and Master Budgeting

Read at least 2 academically reviewed articles on ABC and 2 articles on Master Budgeting and complete the following:

1. Write an annotated bibliography of each article.
2. Based on the articles you reviewed, discuss what you learned
3. In addition, discuss how a manager would use the concepts in the articles you reviewed in managerial decisions.

340 words or more, citations and references ply no plagiarism.

Please organize the discussion as listed above.

Managerial Accounting Economics Discussion

Please write a 150-word peer response for Answer 1 and another 150-word peer response for Answer 2 and another 150-word peer response for Answer 3.

Answer 1

ABC & Master Budget

Annotated of Activity-Based Costing

Coda, Z., Mandell, D., Pine, J., Beyda’s, R., Curran, G., & Marcus, a. S. (2020). A practical method for costing implementation strategies using time-driven activity-based costing. Implementation Science, 15, 1-15. doi:10.1186/s13012-020-00993-1

Coda et al., in their article, describe that strategies of implementation expand the use of evidence-based practices still allow them resources. While the information on costs of implementation is important for budget-constrained decision-makers, cost details are not usually published in the literature. They present a practical approach for systematically measuring the detailed, specific use of resources and the cost of implementing strategies combining TDABC or time-driven activity-based costing, a process mapping business method of accounting known for its practicality. This approach of step-by-step creates a clear process chart of implementation by defining the actor, actions, names, and timeliness of every strategy of implementation, deciding the duration as well as frequency of each behavior related with each strategy. Therefore, TDABC can help as a practical estimation method of the use of resources and costs related with different strategies of implementation as well as their discrete components (Coda, et al., 2020, pp. 1-15).

Wick, D., Wick, D., & Dolina, L. (2020). Materials requirement planning with the use of activity-based costing. Management Systems in Production Engineering, 28(1), 3-8. doi:10.2478/mspe-2020-0001

Furthermore, in the article of Wick, et al. explained that one of the areas of rationalization is the process of supplying material.  Current material supply tasks are supply integration with the operation of the whole system, particularly in the design stage of the product, effective material resources use, reduction of the supply costs level from the viewpoint of production costs. The application of activity-based costing, as well as consideration of cost drivers inside this method, enables costs to be significantly reduced during the planning phase of production processes. One of the tools of measuring the production costs is activity-based costing, which is a basis for the decision-making process in the area of material supply. A model of required materials planning has been developed based on ABC, which considers reducing the variety of types and sizes of materials through alternative materials and thus reducing the cost of production (Wick, Wick, & Dolina, 2020, pp. 3-8).

Annotated of Master Budgeting

Kitara, W. A., & M, S. S. (2017). Relationship between master budget preparation and profitability in sugar factories in Kenya, “A case study of Mumia’s Sugar Company Ltd.” Account and Financial Management Journal, 2(10), 980-989. doi:10.18535/am/v2i10.06

The article explained the relationship between profitability and master budgeting in Kenya among Sugar Factories with a specific focus on MSC LTD or Mumia’s Sugar Company LTD. MSC Ltd has carried out reductions, leading to poor profitability, consequently inadequate budgeting that triggered an on-the-ground investigation. The independent study variables included MSC Ltd.’s Sales forecast, Production budget, the budget of Costs of goods sold, and Administrative and administrative budget. There was a limited distribution of budget preparation information, and a lack of budget awareness for its employees, as well as a reduction in employees negatively impacted the company’s profitability. The study’s conclusion revealed a positive relationship between profitability and budgeting (Kitara & M, 2017, pp. 980-989).

Saeed, M. Z., Qi, r. L. & Jalloh, A. A. (2016). The effects of budgets in the implementation of operational activities in private and public corporations. International Journal of Management Sciences and Business Research, 5(3), 11-20.

Saeed at al. (2016) stated that Budgets are generally set for all departments as well as major segments within the company. They have to be comprehensive, involving all interrelated departments. The budget process has to receive input on all departments; thus, coordination is in place within the company. With regard to the criticalities affecting the development process, this research seeks to analyze the impact of budgets on the execution of organizational operations in public and private organizations. This research is noteworthy to operations managers, corporate heads, and even chartered accountants since this research could enable them to do their duties effectively and efficiently. Although they are setting the strategic budget, they need to consult with all appropriate departments to meet their future needs in order to achieve effective and efficient results (Saeed, Qi, & Jalloh, 2016, pp. 11-20).

B.

I have learned various things from the reviewed articles, such as how activity-based costing and master budgeting is effective in an organizational decision-making process. As well as how they serve as a managerial tool for planning and controlling the management functions.

C.

ABC and master budgeting would use by the manager for a managerial decision as such that this helps determine the cost related to the organizational activities internally and externally, which results in effectiveness in the management process and leads to cost reduction. Moreover, it will help the manager in determining the employee’s priorities and satisfaction as the organizational goals.

Activity Based Costing and Master Budgeting Bibliography

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