Management Accounting Essay Example | Topics and Well Written Essays - 1500 words - 6

Management Accounting - Essay ExampleThe cost of each Renault automobile is 12,000 (Crosson, 2011). The play alongs expenses will include fixed expenses and variable expenses (Noreen, 2008). On the other hand, the company pays for variable expenses. The variable expenses fluctuate or falsify in the same direction as the cable car revenues (DuBrin, 2009). Comparison with Competitors Price. The above Table 1 information shows sales worths are pegged on the Skoda car competitors marketing impairments. The above table indicates that the companys Skoda selling price is lower than the competitors car selling price in order to increase customer demand for the Skoda (Hartline, 2011). In the same manner, the company is selling its Renault car at a selling price that is lower than the competitors selling price. The lower price is a marketing strategy to increase revenues (Buttle, 2009). Since the prices are lower, the company expects to generate high Skoda and Renault car revenues (UKC ardiscount, 2012).In addition, the above table 2 data indicates the sales prices of the companys Renault car in relation to the competitors selling price (Chandler, 2011). The above table indicates that the current and future customers can save more money if they purchase the companys lower priced Renault car, when compared to purchasing the competitors car (UKCardiscount, 2012).Further, the table 3 data clearly shows the companys fixed expenses (Glencoe, 2011). The fixed expenses include the flat rent, electricity, water, telephone, garbage, and other expenses (Levine, 2008). The increase in the car sales normally does not significantly influence the fixed expenses. The fixed expenses are period expenses (City-data, 2012).Furthermore, the table 4 statistical data clearly shows the companys variable expenses. When the sales increase, the variable expenses also increase (Miltenburg, 2005). In the same manner, when the sales decline from one accounting period to