To calculate the exact cost of collecting and disposing the rubbish from a residential address for a period of one year there are few criteria that are considered in this context which are as follows;
The diversion rate is computed by taking into the considerations the weight of recovered resources divided by the total amount of kerbside collected material. The Kerbside waste has the diversion of 9% where the benchmark amount of diversion on a weekly basis comprises of 140 L of waste collection (Drury, 2013). Furthermore, direct operating cost are also taken into the considerations in computing the cost associated with the collection and disposal of waste. The overhead cost includes direct operating cost along with the labour operation costs. The overhead of collecting waste also consists of the baler operation waste transfer station that takes into the considerations the labour costs and direct operating cost.
Furthermore, the household waste disposal expenditure are also taken into the considerations with removing waste from household are significant. The expenses from the domestic waste per annum tonnes are also considered. Costs such as transport off island, landfill SWRA and cost of transporting and disposing the waste is included in the collection cost for collecting waste by ABC city council (Taylor & Scapens, 2016). The current service lays down the difficulties at the transfer station with the waste handling stream in order to efficiently transport the waste and recyclables of the waste. This has resulted in increased amount of contamination and problems in attaining the capacity along with the axel weight that is allowable on the trailers at the time of transferring the waste to the stations.
ABC city costing operates one single pass truck and a spare truck to undertake the current service. Furthermore, the cost involve in green waste per annum tonne is also considered together with the cost of processing the waste (Leotta et al., 2016). The total amount of cost, which is incurred in the collection of waste, transportation, disposal and processing together with the bulky waste stations, is anticipated to be around $870,000 on a yearly basis with $500 per tonne is collected to process the waste. The ABC city council has undertaken the extensive amount of with the trail and waste audit on behalf of the member council to discover the preferred option of collecting and improving the service of standard (Luft, 2016). In order to ensure efficient transport and recovery of collected recyclables ABC council city aims to ascertain the exact amount incurred in the collection of household waste.
With the introduction of green waste management service it is proposed that bulky waste stations can be planted to determine the exact cost of having their rubbish collected. The average yield of recycling collection is estimated to be 1 kg per household each week. ABC city council looks forward to employ the walking floor trailer so that it can transport the waste streams from the residential address (Taylor et al., 2016). The approximate cost of each trailer is in excess of $3,000 and leading to a total cost of $495,000. This cost comprises of $500 per tonne transport cost and $75.65 per tonne is for disposal of residential waste.
It is difficult to counter the exact cost of computing the waste disposal from residents. One of the major challenges for planning and controlling is the uncertainty. There is some description of the expression uncertainty. The uncertainty arises from several variability of estimates and the foundations of such estimates are the design and logistics, objectives and priorities with fundamental rational relationships between the projected parties (Dekker, 2016). The councillor request of discovering the exact cost does not seems to be realistic. Because cost tends to vary and does not remains same.
Preparing the cost statement at times has been problematic since it does not assign the fixed cost to each residential house for collection of waste. Hence, the total amount of cost cannot be entirely matched with the projected amount of cost (Hemmer & Labro, 2016). Practically speaking estimation of cost is required for external reporting and while preparing the exact cost that is required in the disposal of waste runs in to the risk that auditors might not accept such statement to be in conformity with the generally accepted accounting principles (Malmi, 2016). This results in problems for top executives who may favour using the variable costing approach for internal reports.
Given the situation of charging $500 for removal of waste the proposal of having an annual rubbish collection fee does not seems to be an appropriate measure of providing service. The residents may not support the notion of collecting rubbish by paying the fees of $500. The fee charged by the ABC City Council is not relevant since the fee charged by them is used in the form of raising revenue.
Management accounting has been in several ways either by unfolding its role or by explaining its objectives and procedure. Usually, it is extraordinary that the conventional description of managerial accounting explains that management accountant is based on the piece of evidence of providing information to the managers (Kaplan & Atkinson, 2015). Managerial accounting is regarded as the profession that consists of collaborating in management decision making, performance management system and providing proficiency in the monetary reporting. The secretarial profession has observed huge censure in the current universal monetary disorder. Several queries have been raised concerning the role of the management accountant in the age of globalization (Deegan, 2013). The essay seeks to explore role of management accountant along with the perception of people towards the accountants in the era of globalization.
In the modern era, it is observable to what degree management accountants have turned out to be more effectual and crucial in decision-making process. Managerial accountant have become an important part in the organization process and managerial accountant have turned out to be a substantial strategic partners in the management team of a company. It is striking to witness that management accountant have become significant part of management team (Garcia, 2015). A huge amount of emphasis has been placed on providing business recommendation to administration whereas in past it was only restricted to provide information to the management. In the modern era management accountant are entrusted with the role of strategic management to collaborate the organisation. Furthermore, management accountant are concerned with performance management by budding the practice of company decision making by managing the performance of the administration.
According to Bebbington et al., (2015) mentioned earlier that definition of management accountant explains the roles of management accountant by describing its role or its objectives. The responsibilities of management accountant consist of planning, directing and controlling which also includes decision making to the managers responsibilities (Christ & Burritt, 2015). The management accountants help the top management to fulfil responsibilities of goal setting and objectives of the organisation by determining the procedure of fulfilling them through specific implementation of action.
The management accountant oversees the day to day functions and also keeps a check on the execution of tactics to attain the organisation goals. Furthermore, after setting the plans the management accountant is required to direct its employees to attain its goals. Management accountant also discharge its responsibilities by exercising control and evaluates the outcomes of business operations against the plans (Wan et al., 2015). In other words, they adjust the plans to keep the organisation pressing towards their goals to ensure that efficiency and effectiveness of the organisation is maintained. Management accountant also provide their effort in the secretarial division and in addition they also provide information to the controller that are accountable for general financial accounting and tax reporting.
In the modern age managerial accountant is located all through the organisation and works in the cross functional teams that comprises of workforce presenting numerous functions of the organisation (Bodie, 2013). This includes research and development, production, marketing, distribution and consumer services. With the introduction of globalization, several businesses have started to go international by taking the business actions crossways the nationwide frontiers. The marketplace is turning out to be highly competitive and it is becoming fiercer than ever. In order to cope with the strong rivalries it calls for deliberately placing the business enterprise in context to which management accountant operates to compete against the rivals (Otley & Emmanuel, 2013). Globalization is creating an impact on the concept of management accounting.
With growing weight of globalization, there is an increase in rivalry and information is transferred more quickly. Management accountant plays the wider role in organization by not only providing information but also participate in the process of decision making or at least assisting the managers in making better decisions. In pursuing the objectives of the organisation, managerial accounting continues to expand by emphasising on reducing the waste to create the value through efficient use of capital (Cooper et al., 2017). Thus, management accountant plays a significant role in creating and adding value to the company by administering resources, actions and individuals to accomplish the goal of organisation.
Moving towards ethics management accountants is required to behave ethically. There are certain obligations that need to be followed with highest standard of ethical responsibility and maintaining good professional image. Manageria accountant are accountable for upholding a suitable level of proficient ethics by constantly developing facts and skills (Fullerton et al., 2013). Managerial accountant promotes integrity by mitigating the conflict of interest by frequently communicating with the business associates in order to avoid obvious conflict of interest. The management accountant provides advice to all the parties of any potential conflicts. Management accountant refrain from indulging in any kind of conduct that would prejudice executing out duties ethically (Bhimani et al., 2013). They generally abstain from indulging or supporting any kind of activity, which discredit the profession.
In complying with the standards of ethical professional practice management accountant may encounter difficulties in identifying the unethical behaviour or solving the ethical conflict. When management accountant are faced with ethical issues they follow the established policies of the organisation to solve the conflict of interest. Management accountant discusses the issue with their immediate supervisor and submits the issue to the next level of management (Malmi, 2016). On the other hand, management accountant communicate the information quite and independently by disclosing all the important information, which could sensibly be anticipated to persuade intended users understanding of the reports.
Management accountant ensures managerial ethics of all information to the business owners, directors and managers (Luft, 2016). Employees might choose an option of acting unethically however management accountant continuously push their ethical limits when recording and reporting the financial information. Business owners and decision makers are required to full and objective data when reviewing the business functions for making vital decisions (Hemmer & Labro, 2016). Ethical standards assures the information is provided in full and without any biasness irrespective of the information being positive or negative. Additionally management accountants possess the access of sensitive business data.
Accountants that disclose the internal information for private benefit can ultimately destroys the belief and place the business towards a severe lawful implications. The accounting ethics ensure that management accountants that managerial accountants can be trusted with the receptive trade information. The ground of management accountant undertakes the role of maintaining and upholding the business ethics seriously (Dekker, 2016). The international federal of accountants which is a international governing body possess the code of principles which is applicable to the management accountant.
The IFAC code lays down the ethical accountabilities concerning the areas of taxation, cost and commissions. It further comprises of the ethical guidelines associated with integrity and objectivity, resolution of ethical conflicts competency and confidentiality. Hence, management accountant uphold a suitable degree of proficient expertise by performing duties in compliance with the applicable laws, regulations and technological principles (Novas et al., 2017). They provide decision-making information and recommendations, which is precise, obvious and timely rendered. They identify and converse the professional restrictions and other constraints, which would preclude responsible judgement or successful execution of an activity.
Management accountant adds value to the organisation by assisting the top administration in the process of decision making and planning. In addition to this, it is found that management accountant also participate in the important decision making and procedure. They also ensure that the ethical standards ensure that information reported such as cost volume profit analysis and investment appraisal techniques provides the managers with necessary information regarding business decisions.
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