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the_relationship_between_the_case_and_the_classwork.docx
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The relationship between the case and the classwork
It is important to mention at the onset that managerial accounting and cost management are twins.
That goes to the extent that administration in an organization calls for a careful analysis of the expenses of
the organization. To make more profits, it is necessary that managers keep an eye on the costs of running
operations in the institution. Should they be high, there is a need to craft creative mechanisms to reduce
the same while also ensuring that the organizational culture and the dignity of the employees in not
compromised. Discussed below are some of the ways in which the case bears semblance to work done in
class;
An initial introduction to the course touched on managerial accounting and the business environment.
The subject laid emphasis on the managers in the general set up of the organization and the factors that
they consider while making decisions. Managerial accounting entails making deliberate efforts to
influence the financial performance of the organization through the adoption of various policies that will
enhance growth. All these are done by the particular environments in which the business operates. The
case has provided for a situation in which companies decide to change their places of operation because
of the environment. For example, a company decides to go overseas in search for business when the
existing environment is either hostile or unfavorable. For instance, high cost of labor and increased taxes
may make an entity to shift operations to other countries.
The course has also concerned itself with the value concept and all the factors that are considered
while apportioning the costs of various services. The concept is broad and covers on a myriad of issues
that touch on the fundamental structure of the institution. It indicates the role of management in affecting
costs and the general effects of the expenses on the performances of the organization. The case is related
to the topic as it gives a picture of some of the ways in which the traditional managers used to reason out
to take a particular course of action. For example, it would be good to find out the reasons that make
institutions find a way of merging their operations so as to reduce costs and still get that mutual benefit.
In addition to that, the course work also discussed at length the issue of activity based costing in the
larger area of system designs. In this field of discussion, the issue of how to best arrive at costs arose.
Organizations allocate costs differently in a manner that suits their operations. The system they have
designed would be helpful in determining the effectiveness of their models. In the case study, some
organizations that are labor intensive had to find the ways of reducing the work so as to arrive at a
manageable level of costs. For instance, some would inject technology so as to replace human effort. The
case is, therefore, relevant in indicating whether the lessons obtained in class are workable or merely
theoretical.
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