Accounting and management Essay Example | Topics and Well Written Essays - 1250 words

Accounting and management - Essay ExampleWages own change magnitude by virtually by 17%, electricity expenses have gone up by 11% a mistakable increase has been experienced for accountant charges. Single digit increases have been witnessed by expenses on rent (9.09%), policy premium (5.66%), and telephone bill (6.25%).The most distressing deviation has been suffered by the component of sundry expenses, by an abnormal amount of 40%. This points out to the fact that the company does not have adequate dominate on money flowing out in minute amounts. It has spent in necessary amounts that have resulted in the sundry expenses surging so high. The high sundry expenses can have another suggestion as well. There might be corruption in the system and the employees take undue utility of the same.There needs to be sufficient control on the expenses as revealed by the analysis. Samuel Pepys needs to drivel out adequate research before he embarks on the preparation of annual budget. The c ompany had genuinely exhibited operational efficiency by garnering a higher sales volume than was budgeted. However, all of that achievement got subsided by the enormous equals incurred by the company. Use of accessories like telephone and electricity must(prenominal) be modulate and used as needed. Unnecessary wastage of costly resources must be avoided. Methodical accounting of all expenses must be carried out and reviewed on a periodical basis so that the purpose for which a cost is occurring gets effectively monitored.The management should initiate proper steps to ensure that they can check the adverse tire out rate variance and material cost variance. Though the actual sales has increased from the budgeted sales, yet because of the increased expenditures, the companys actual profit is lower than that of the budgeted profit. So, to check the excess expenditures proper steps be recommended to the