Reference no: EM131202661
Introduction to Management Accounting Assignment-
Mal Ltd. is a producer and importer of freshly cut flowers based in the country side village of Tagus. It has made a name for from its gerberas, roses, carnations, and tulips, although the portfolio includes a range of itself other products. Tulips and some special flowers are imported from the Netherlands. Products are sold at its premises to florists, in the trade market to wholesalers and retailers, and directly to a large retail chain. The market for fresh flowers is very competitive, with significant pressure over prices. There is high seasonality in supply (e.g. spring and early summer) and demand (e.g. valentine day, mother's day, Christmas). When there is a significant mismatch between those supply and demand, prices can fluctuate widely, from 'rock bottom' prices that do not cover production costs to 'sky high' prices that make very generous profit margins. In addition to price, the market values highly product freshness, reliability of supply, speed of delivery, and range products available (including colour variations).
1. Conduct some research to explain the value of cost classifications for Mal Ltd. and how this may assist Mr and Mrs Long in improving their decision-making processes.
2. Conduct some research into costing techniques that Mal Ltd. might find useful. Based on this research and using the detail in the case, choose a specific technique (or set of techniques) that you believe would be most suitable. Describe specifically how your chosen technique(s) could be used by providing tangible examples of how they would operate within Mal Ltd. It should be clear from these examples how Mal would determine a product cost for their products. Also, briefly describe why you consider your chosen technique(s) to be superior to other techniques. (Please note: you are not required to actually calculate any costs here, just outline how costing could be done differently. Therefore, you may wish to provide a table or diagram outlining the operation of your proposed costing technique(s).
3. Using the detail in the case, describe how your chosen method of calculating product cost will be beneficial within Mal Ltd. and have relevance to management.
Word Limit: 1,200 words
Page Limit: 6 pages
Referencing: Please use APA style referencing.