Good Managerial Accounting Essay Example

Type of paper: Essay

Topic: Cost, Company, Customers, Business, System, Insurance, Products, Internet

Pages: 2

Words: 550

Published: 2020/11/18

Q 1:
Biolea: It is a company that have been involved in producing organic olive oil by using presses and millstones. This family owned business products are bottles and estate produced. High-quality products are provided through continuous mix of tradition and innovation by considering sustainability in tourism development and environment. The company incurs the fixed cost of salaries to its tour guides and olive farmers. In addition to this, the depreciation of machines is also the fixed cost for the company. The company’s variable cost includes the bottling cost of olive oil and the cost of olive seeds i.e. direct materials. This company is very unlikely to have mixed cost.
Gulf Craft: Gulf Craft is the company that manufactures fiberglass boats and luxury yachts. The company is based on UAE, and it also operates shipyards in Maldives and UAE. The company incurs the fixed cost of factory rents and the fees and charges incurred in operating shipyards. Its variable costs include the cost of raw materials like motor engines, decoration items of yachts and utility expenses like electricity. The mixed cost includes the cost of using cranes and other equipment at shipyard from third party. The labours employed at the shipyard also incurs mixed cost. This is because the equipment and labour have fixed cost in terms of charge and wages that might increase variable in case of over usage and over time.
Evian: Evian is a French multinational company that produces the mineral water. In addition to production of mineral water, Evian also provides the skin care products and operates the luxury resort in different parts of France. It's fixed cost is the rents of factory premise and interest expenses while variable cost is the cost of bottling of mineral water and the costs of fuel and energy at resort. The mixed cost includes the cost of electricity that remains fixed for a particular unit of consumption and then its cost changes with additional usage. There is no other cost that the company incurs that is of a mixed nature.
Ircon International: This Company is involved in infrastructure development of transport. It is a construction and engineering company established in India. It undertakes the railway projects in India. The company incurs the fixed cost in terms of machine and equipment depreciation and the accounting cost. The variable cost includes the total licensing cost and cost incurred in paperwork i.e. administrative cost. The mixed type of cost includes the cost of machine usage, the cost remains fixed for the particular level of usage that overshoots if the machine is used for overtime. In addition to this, in the case of overtime, the labor wages and salaries can be mixed type of cost.
Q 2.
Vasco Data Security International: It is a company that deals with the data security. It produces authentication system that is used by several banks and companies. Its website is It used job-order costing system because the authentication process of different companies varies accordingly. The system must be built to incorporate the authentication system according to the company’s policy. So, the authentication system is developed according to the need of the client companies.
Interactive Intelligence: This Company is the world renowned provider of communications platforms, ERP and software that automates business processes. It facilitates the call centers by providing VOIP infrastructure and the system that incorporates all services like phone, fax, web services and email. In addition to this, it provides different kinds of business software that increases the company's performance and customer experience. Its web page is This company must use job-order costing system because the demands of customer are different. The software and communication platform must be designed according to the need of the customer. Some customer might not need fax or web service while other might need all. So, the company must provide the service according to the need of the customer.
Specialty Underwriters' Alliance is the company involved in providing the insurance products to varieties of customer according to their need. Unlike the traditional insurance products, the company designs the special insurance packages for the clients according to their needs. Its website is This company uses job-order costing system because it has to provide different kinds of insurance package to different customers. The difference in risk profiles of the customer forces the company to develop a unique kind of insurance package for each customer. Since the difference in risk profile of the customer must be taken into consideration, the company must design the insurance package that covers the unique risk of each customer.

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Good Managerial Accounting Essay Example. Free Essay Examples - Published Nov 18, 2020. Accessed March 03, 2024.

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