ACC 5 Essay Example | Topics and Well Written Essays - 1000 words

ACC 5 - Essay ExampleManagement accounting is as important as production in the modern agricultural environment. The solution offered here is a responsibility center uprise that sets up address and profit centers. The system enables comparisons aboded on crops and land. It likewise lets the conjure track instruction execution on a year to year basis. The solution is long term and will ensure that the farm will run well even after the management is taken over by the close generation. The court centers are for support, and stages of production. We have production cost centers for land owners. One cost center is for management. The cost centers are grouped under the profit centers associated with each commodity. The accounting techniques presented here will be relevant to any farm. The farms can have any combination of land ownership, equipment and crop. The responsibility for accounting is with the top management. The machine-controlled system lets the owner perform detailed a nalysis that would not be possible without a computer software solution.The solution uses responsibility accounting. This approach is aligned with the organizational structure. It also lets us control finances better. there is an individual cost center for each activity. Costs can be allocated check to the land ownership. We also have cost centers based on crop. Each crop has its own marketing cost center. all the cost centers are grouped by crop and function as profit centers. This solution is unspoilt because management control can be exercised from the farm field to the profits. Costs are allocated fairly amongst the crops so that we know accurately how much money has been spent to produce a particular crop. The allocation base is selected based on the right measure of the costs. The costs can be subdivided between the cost centers according to the allocation base. The individual costs associated with the use of equipment are considered.The software used generates the financ ial statements required. These include cost allocations,