Utilizing a well-known company of your choice, prepare a report to address the following aspects of modern management accounting. Your report should display a degree of originality and depth beyond merely replicating information from the internet or common accounting texts.
1. The classification of costs and cost behavior is central to the purpose of cost accounting. Illustrate how costs are classified and how understanding their behavior will assist the business in planning for the future.
2. Outline with relevant examples the various types of budgets that exist and the way in which they assist management in the day to day running of the business.
3. Management will at times utilize a “Flex Budget”. Using relevant examples describe what is involved in flexing a budget and give reasons when and why management would want to flex a budget.