GFI Executive Report

Gracie Fay International (GIF) has an device to understand their abilities to record, classify, and summarize their financial, but they ar lacking the understanding of their address report dust of ruless, product be for production of as well ask balls, particularised job modulate address for special(prenominal) order products, and their cost information on the two models of pitching machines, which all of these atomic number 18as ar not being Justify on how fundamental cost write up is a alike(p) growing participation Like GIF.These quatern beas ordain be explored In to a greater extent detail in order to puke light on distributively activity, which exit ensure that GIF Is asking a profit, fructify decisions, and recognizes any corrections that need to me made. GIF essential understand that cost accounting Is an Important function In their corporate strategy. monetary pass judgment accounting Is known as managerial, or steering accounting, which It provi des economic, and financial Information In reservation decision for the bon ton. Its mall physical object is to provide information In ladling management to plan, institutionalize, and control operations.It also improves these controls by planning data on the cost incurred to each manufacturing department. The skill sets that I read will enhance GIF on many levels, and they entangle full knowledge of purchasing policies, processes, and procedures, difference and reconcile records, satisfactory to research and respond unbalance issues, have strong technical foul skills, solid decision making skills, and the faculty to exercise independent Judgment, prioritize and plan, officiate activities efficiently to meet deadlines, work as a team or independently, exposit oriented, excellent oral and written conference skills, and strong mathematical skills.Cost management is employ to plan, and control the companys decision process, in which avoid cost would be lower, and produ ct value would increase for customers. It provides information that ensures management sucks pathetic, and longsighted barrier decisions no matter what kinds of materials are being apply, changes in plant process, or in product design. Management would make these kind of decision to increase short term profits, and Improve the long term position of the company. There are lead cost system that are using upd for manufacturing operations contemplate order cost system, Process cost systems, and Activity base (BBC).Job order Is used to reduce products for specialised orders, and It estimates the costs with producing the goods for contrasting Jobs (Atkinson et. Al. 2005 p. 79) Process be Is often used by companies that operate on using continuous processing. This type of system applies the costs of production, labor and support actively as the goods pass through the different process submits. (Atkinson et al, 2005, p. 92-94) BBC has a two stages, the world-class stage Is cos t Is allocated to pools, and the second stage Is the cost pools are allocated to products, or services. (Edmonds et al, 2006, p. 33). These septets entangle understanding the difference between manufacturing, and non manufacturing costs, calculate the cost of manufacturing a product, indemnifying cost deportment when it comes to utilizing cost volume profit relationships, circumstance prices, budgeting, controls, and capital when it comes to the companys strategies. Transform raw materials into undefiled product, and the cost consist of basic materials, and components, labor, and grind overhead in order to smash a finished product. The material, and labor is assort as direct, or collateral to the finished product.To explain direct material, it is taking major components, which groundwork be traced to the finished product. It counts these components carefully, because of the consequence to the product, for example take a lawn mower its major components are the engine, whe els, and handle, but the indirect materials is those minor items like screws, nuts, bolts, washers, and lubricants, which is accounted for as manufacturing plant overhead. Cost accounting also includes direct labor costs, which is all labor costs for specific work performed on products that can be conveniently and economically raced too product unit.Factory overhead is all pulverization costs that are indirectly related with the finished inventory. When it comes to cost behavior, the costs do not change in total, til now when the product numbers increase, or decrease, and is considers to be fixed cost, an example would be rent. early(a) cost that a factory whitethorn incur would be known as non manufacturing cost, which includes selling, administrative, and financing costs that are deducted as expenses from the sales revenues. The manufacturing production process includes, Job shops, batch flows, etc. Which help get hold the type of product cost system the company may utilize.It is understood that when making a decision its best to use estimation of costs, but management must have a good report on how costs behave. There are several methods that management could use the in high spirits low method, or the least even up regression. When a company is setting prices in that location is one approach to think about, that would be the cost plus pricing. Then the company can apply the proper markup assumption the competitive market conditions, and other factors, like target selling price. In equines a budget aids in planning, and positive of the company. Master budgets consist of direct, and financial budgets.The operational budget forecast sales, while financial budget is based on data from income statement. Let not forget that budgetary control is needed, this process compares actual operating results, and to identify problem areas in order to correct the issues. In conclusion cost accounting provides products, or services that greatly benefit Gaffs mana gement team in many areas such as, competition, downsizing, or expanding globally, thence GIF must understand that without cost accounting in their business plan the company may not be able to expand their activities, remain profitable or improve its competitive standing. Art 2 Product Cost Variable obdurate Direct Electricity x certain Estate Taxes x Indirect trounce to tie wood together Manufacturing excavate Water x Lubricants for Machinery Equipment depreciation Electricity, and Water- is manufacturing, varying cost, because the business depends on electricity, and when sales have increased it creates more demand for more product. Real Estate Taxes, and Equipment depreciation- is fixed, because it remains trice within a relevant vagabond of volume, or activity.