Activity 2 – CLO 1, CLO 2, CLO 4, CLO 5, CLO 8 Prepare income statements in both job order costing and activity-based costing formats for a hypothetical case. Your example should include at least three activities and at least two products. If you do both correctly the operating income in both statements should be identical. Explain the initial assumptions and the calculations in detail. Provide in-text citations.
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What is Managerial accounting?
The objective of this unit is to develop skills and knowledge to assist in completing managerial tasks. The outcomes will be developed during the assessment task by demonstrating the ability to: identify problems to be solved by applying financial accounting concepts and procedures; develop strategies for achieving financial and management objectives; communicate financial and management information; and interpret financial information. Management accounting is concerned with understanding the actions taken by organisations in their attempts to control the costs of production, increase profits and protect the customer or taxpayer. It helps managers and other employees make decisions about their organisations and provides them with information to make effective decisions.
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