Many of the concepts in managerial accounting were first developed for the manufacturing environment. Do you think the same concepts, such as variable costs, fixed costs, mixed costs, and job order...

Managerial Accounting in Service Industry

Managerial Accounting in
Service Industry
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Contents
Executive Summary ...................................................................................................................................... 2
Financial Accounting and Managerial Accounting....................................................................................... 2
Managerial Accounting concept in Service Industry .................................................................................... 2
A. Fixed Costs in Services Industry ....................................................................................................... 2
Fixed cost in a Hospital: ........................................................................................................................ 3
Fixed cost in a Restaurant: .................................................................................................................... 3
B. Variable Costs in Services Industry .................................................................................................. 3
Variable costs in Consulting Industry: ................................................................................................... 3
Variable costs in Restaurant: ................................................................................................................ 3
Variable costs in Hotels: ........................................................................................................................ 3
C. Job Order Costing in Service Industry .............................................................................................. 4
Job Order Costing in Hospitals: ............................................................................................................. 4
References: ................................................................................................................................................ 5
Executive Summary
The report provides an explanation about the modern cost concepts that are used in managerial
and cost accounting. The costs dealt here are Variable Costs, Fixed Costs etc. The report
highlights how such costs concepts are relevant in service industry as well.
Financial Accounting and Managerial Accounting
Financial accounting centers around giving chronicled money related data to outside clients.
Outer clients are those outside the organization, including owners (e.g., investors) and lenders
(e.g., banks or bondholders). Financial accounting answering to outer clients is required to
follow U.S. Generally Accepted Accounting Principles (U.S. GAAP), a framework for
ookkeeping and accounting that requires consistency in recording and revealing monetary data.
Managerial Accounting centers around inside clients—officials, managers, supervisors, and
furthermore, some other work force inside the association who utilize bookkeeping data to make
critical choices. Managerial accounting data require not acclimate with U.S. GAAP. In truth,
conformance with U.S. GAAP might be an obstruction to getting helpful data for inner basic
leadership purposes. For instance, while building up a stock cost for at least one units of...