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Management Accounting: Management Accounting Principle Coursework

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Updated: May 27th, 2022

Management Accounting has been the art of planning and organizing the internal procedures and the layout of an entity for optimal exploitation of its resources, so has Penny Mallory employed such tools in the launch of her total business entity. Even though, British culture has embraced the taking of coffee, Ms. Mallory’s management accounting principles make her endure well in a country with such a consumption culture. Her goal is to provide a quality product that would compete with the current consumption pattern in her country.

Perhaps her intention to start a tea selling business is an authentic goal that she has identified and which should be implemented for achievement. As a managerial accountant, so does Mallory come up with a business goal, aimed at maximum utilization of her resources for maximum profits. As managers, a goal is aimed at leading them towards achieving some benefit in the view of profits. It is evident that her business expanded and can now supply tea throughout the country.

By her organizational structure in the business set up, so has Mallory managed to compete with the other tea shops in Swansea’s Waterstone’s. She uses a better strategy that is adapted to have a strong competing strategy with the other similar businesses. She has formulated these strategies and can thus compete with other businesses in the area. The mode of brewing her tea is ideally made to provide better quality and even at a cheaper cost compared to the other competitors.

The system of brewing is made to optimize the existing available resources. This is most evident in the nature of her style and equipment of production that makes full use of the available resources to produce a high-quality market competing tea. She also uses a variety of loose leaf tea which caters to the different tastes requirements of her customers. The mode of service is also evident of using fewer resources and also reducing the time frame for customer services

Either, the machinery and the techniques she uses in the brewing is an attribute corresponding to the managerial accountant’s goals of development and advancement in technology.

The emergence of the total café corresponds to a rise in constructive ideas about a business by Ms Mallory. Managerial accountants should never the less be fast cognitive developers of business idea. As a principle, they should then employ planning and strategies in order to ensure that there is expansion and growth in these business ideas. They should use cost effective tools and optimal resource allocations to implement their business ideas.

Managerial accountants need to have a positive behaviour in their strategic grounding of business. Such behaviour should focus on the distribution of factors that should be considered in setting up of business ventures. Although south was not the best site location, but she chose it because she could not get another store. However, the organizational structure of the firm as a principle in management accounting, helped to attract the growth of the business throughout the country. The business thus expanded through the government’s enterprise scheme and can now sale tea in many locations in the country.

Mallory also employs optimal resource allocation for her to get the maximum profits. She uses cheaper machine than that is used in making coffee, occupying less space and yielding up the biggest profit. Mallory continues to employ substantially a good accounting system where she can easily account the previous year’s earnings. Her aspect of forecasting can help her estimate the sales for the fourth coming year. She is able to estimate all the possible estimates of the cost and equipment she may require in her business.

The expansion of her business can be well attributed to the good marketing and distribution strategies she is seen to employ. It has been seen that, the sale of tea through national chains would be faster in relation to using the local cafes. Either, making sells via the website can still be argued as being a contributor towards the explosive sales. Broadly, it can be argued that this is also an organization behaviour aspect of the business management. Also it is through her intensive marketing scheme that she can attract a larger volume of her customers. She is expecting to raise money to finance the marketing requirements in which she claims to be the best way to improve her sales.

She is very sound in planning and making of decisions. Where she considers that, she can only sell her business to an investor in the hospitality sector if the tea business is to continue in Britain. Either, planning and sound decision is evident right from the beginning where she plans her business well to compete in the environment it is placed in. All through, she has employed different strategies in planning and organizing her business to suit best the competition in Swansea’s Waterstone’s.

It’s highly evident that Greenhalgn has used management accounting principles that has made him perform well in his Kate’s cake business. By deciding to come up with a business, Greenhalgh develops a constructive idea about a certain business. However, to be cautious, he chooses to seek a good example about the business he wants to engage in. As management accountants, so has Greenhalgh come up with the idea of a buy out of an existing business from Kate.

He is good at planning, which makes his business to perform well in the market. Through his planning and good decision making, he is able to plan for the future expansion of the business. He there decides to locate the next bakery in Europe despite the unexpected challenges of doing there.

Organizational behavior structure as a management principle is highly depicted by the way in which the tremendous growth of the business is from the beginning to even the future growth prospects. Its clear that, by the active roles of the management’s organization, has the business been able to incorporate management decision hence it has been able to expand to even its forecasted future scenario.

Either, management decision and problem solving can be an attribute to mention about Greenhalgh current business development. Firstly, he chooses, to seek a good example in starting a business only to meet across, Kate’s cake business which he ultimately decides to buy it. Buying Kate’s cake business is in itself a decision. Either, its still decision for Greenhalgh to expand his business to the Europe, other wise, it would fetch no decision of storming into the market of Europe if none is made of expanding the business from UK to Europe.

By his good planning, so has Greenhalgh been able to plan for the future expansion of the business. Therefore, to meet this future expansion, Greenhalgh sets a layout of the business requirements that captures such an expansion. Proper planning can still be argued as been a contributor of the overall growth of the business right away from its start.

There is optimality in the use of resources in his business. Economically, it is argued that, only optimally used resources can yield benefits and growth. Greenhalgh Company uses its resources to produce cakes whose profit margin has been too high. Otherwise, it could have used the same resources to produce another commodity which could not be of such high returns. He also considers other production cost and challenges that may face him in his bid to expand the business to Europe. This is because some invisible externalities may increase the cost of productivity in Europe which may act against optimality in resource use for maximum profits.

Greenhalgh has a divergence in maintaining proper accounting documentation which is a constant health management issue. He is able to account for all the sales and expenses the business may have experienced since then. Either, he is able to account of the future financial requirements by the business in its performance.

He calculates the cost effectiveness of moving the business to Europe which would probably lower production expenses. This is in turn an attribute to the principle of optimality in resource use and allocation, where Greenhalgh argues that, moving another bakery in Europe would serve to reduce the cost of production than to provide the customers with the cakes produced at home. Either, producing in Europe would call for more sells because customers would prefer more of the cakes produced within their country.

It is conventionality a principle by managers to diversify their strategies in achieving their goals. Greenhalgh has used different strategies in achieving the expansion of his business. Initially, he had the intention of starting up a business, but could only engage in one after observing a good example so that he would not find himself into losses in starting by himself a new business. After a close observation and a study about the profit nature of the Kate’s cake business, he chose to buy it. Either, Greenhalgh has first exploited the business market nature in UK where the business development makes him to broaden up his capacities and expand in Europe. These are the results of planned strategies that finally capture Greenhalgh’s former intention of wanting to expand to the entire continent. He also plans to replicate the quality in order to address the customer requirement in the Europe, where he is not sure whether the business will perform well.

Greenhalgh has diversified the market as an attempt to ensure maximum sales of his business product. Through this diversification, his business has business has been able to expand.

From the newspaper article published by the Daily Telegraph Business Club, its argumentable that Hillie Marshall success is attributed to the management accounting principle she has employed. Right from organizing a social agency as a dating agency to what eventually ends up as been a lucrative business entity.

Firstly the organization behaviour of Marshall is a definite evidence of being well versed with management accounting. Beginning on how she organizes her business agency as been a dating agency until the point where she can make big sales from the food consumed by the persons on the date. Even, there is the development on sporting activities that attracts many and hence more earnings. Either, the agency is organized to cater for the needs of some specific group of people who for sure keeps a constant supply of customers to the agency.

She is too strategic while establishing the agency, in terms of timing of customer descriptions and also focusing on fulfilling specific customer needs. That is why, Marshall is able to attract many unmarried people who has a lot of money, and able to accommodate them, because the time requirement of them is met. Also, Marshall uses sporting activities which are normally interesting to most of the youth to double the customer’s service requirements at the agency.

Marshall is not badly off in her accounting system which is an important tool in management accounting. It is seen that she can estimate all the financial fee requirements from each customer in order to ensure that the agency functions well at a profit markup. Marshall maintains a good data information system, where he has maintained a clear database of all the members ascribed to the agency and any current development about those who might have been successive in meeting one another. Though the use of the same database, it is easy to state on who plays what sport between the different sports.

She is good at planning and making vibrant decisions. Through her properly implemented plans, the agency has been able to make developments. From the beginning, she plans on starting a dating agency, whose end results is seen to capture quite some big developments.

Also, through good accountancy attributes, she acknowledges that she has never made bank loan or an overdraft. Either, she argues that, she has never had any funds into dinner dates. The idea of starting a business by its own is seen as an important principle guiding the management accountant. By their nature, management accountants are supposed be persons who can develop constructive ideas about businesses. Therefore, Marshall is not an exception to this principle having come-up with the idea of starting a dating agency.

Decision making and problem solving is an art that has contributed in the success of Marshall’s business. As one of the guiding principles, Marshall has used the evidence of the agency’s growth from being a small venture to a big one.

In her business plan, Marshall has not compromised on optimality in using her resources. She has efficiently been able to organize her resources to yield up recommendable profit gains. Via the assembly of her business setting, so is Marshall able to capture the consumption tastes of her clients.

As part of her organizational nature, Ms Marshall maintained a good communication between herself and the clients. She can effectively communicate with her clients which continue to ensure a good relation system with them. She has continued to safeguard her assets through ensuring that the business equipment and assets are properly maintained. Marketing is still a feature principle in Marshall business. Through good marketing she is able to attract many customers. However, she is trying to change the mode of marketing from using magazines to using the internet which is available to most of the youth.


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