Advance Management Accounting and Performance Management

Introduction

In manufacturing industry, the managerial accounting possess significant importance and helps organizations in terms of determining the cost of their production and revenue that company generate in the industry by selling products in the competitive market (Hirsch, 2000; Kaplan & Atkinson, 1998). Therefore, in this paper, it is determined the function of overall advance management accounting based on the assumption. For this purpose, a particular industry and product is selected and by using advanced managerial method, detailed analysis of the market is provided by assuming production cost, quantity, revenue, profit and demand and supply. Along with this, detailed calculation of every aspect is provided to show the working of managerial accounting and its several areas.

Overview of Chosen Business

The business that is selected for the study is belongs from the manufacturing industry. The name of the company is Real Pens Corporation UK that is decided to produce ballpoint named 'Picasa' and sells them in the overall market of UK. The company aims is to provide the best experience to the customers and especially to the students of UK in terms of using pen (Picasa) for writing purpose. Now the company needs to decide the cost and selling prices for their Picasa pen by making throughout research in the UK market and gather information about its competitors who are producing similar products (Cult Pens, 2013; Weil & Maher, 2005).