Management Accounting





















Go to the Kitchen to Learn Management Accounting


A kitchen, whether small or large, is a brilliant place to learn about management accounting. After all, the following things happen in a kitchen, among others:




Just in Time (JIT) buying and preparation



Quality Control






Managing and using equipment and tools


Think about making a Pizza: draw a flow chart and list everything you need to finish the job.


















Cost Accumulation


To complete this exercise you should create a cost accumulation form that includes the cost of all ingredients, allowances for electricity or gas used by the oven as well as costs of using the various items of equipment and tools. Treat it like a real job in a real kitchen and something like the following is what you should prepare!




















You are free to amend this table in any way you deem appropriate.


Contrast making a pizza with making


my breakfast: cereal with milk a banana, yoghurt and coffee with milk

dinner for two

a buffet party for 10 ... for 20 ... for 50 people


Things will Change


As you change your ideas you will change the way you work, the way you buy and store things; you will change the way you prepare things, even preparing things days in advance and not JIT. Then you might even get someone else in to help.


Far from being a silly case study, this is a really valuable and worthwhile exercise and if you are new to management accounting you should try it!




9th August 2015









(C) Copyright Duncan Williamson 2015