Managerial Accounting Practices Essay Example | Topics and Well Written Essays - 500 words - 4

Managerial Accounting Practices - Essay ExampleAnother disadvantage of meliorate be is that they eliminate flexibility and make the job of managerial accountants much harder. Variable be change depending on the level of sales. Also a managerial accountant can find ways to eliminate or reduce variable exists easier than fixed costs. A costs structure in which variable costs are more influential than fixed costs is more likely to have a g lower breakeven point. The breakeven point is the amount of sales necessary to cover all expenses.There are many fixed costs in which Claire Corporation is incurring. Some of the companys fixed costs include expression rent, salaries of administration staff, and depreciation of equipment expenses. The companys plan of expanding the amount of distribution centers is a move that pass on definitely increase the companys fixed costs. The overall sales have to increase to reassert that strategic choice. If variable costs are reduce it would increas e the contribution margin of the company and retch its profitability. The situation of having to liquate merchandise due to excess inventory must be remedied immediately. If the company ad well(p) its cost structure geared towards variable costs instead of fixed costs the plan of creating a just in inventory system would bring greater benefits for the company.There are ways for the company to nonplus the transformation process to moving away form unnecessary fixed costs. A fixed I had not mentions that is major problem in the company is maintenance costs of the equipment. Some of these machines are disused and should be replaced immediately. Buying new machine would eliminate most of the wastage and unnecessary maintenance costs. I also evaluated the company debt situation. The firm has multiple long term loans that were incurred when the firms credit score was low due to company being a newcomer in the industry. Now our business credit rank has gone up a lot. Refinancing