Introduction

Managerial accounting or cost accounting is taken into account in an organisation in order to increase the level of the future scope for the respective business with the help if that, the business becomes more capable in tackling the financial risks and other at all the levels. In order to undergo managerial accounting, the finance department of an organisation may have to consider identification, measurement, analysis, interpretation, and communication process in accordance with the managerial information. This may have helped the respective organisation in pursuing the business objectives related to business growth. In addition to that, it has been known that managerial accounting process can effectively control the process of innovation in the organisation.

Part A: Case Study Analysis

1. Several types of costs. Three different types of costs related to the case study along with an example for each case

The cost has been known as a value that is equivalent to the liquid cash that a company or a producer may have needed in order to produce a service or product to the customers (Muennig and Bounthavong, 2016). To be more precise, it can be said that the cost is one of the major element that an organisation is needed to incur in the business functionalities in accordance with making the business profitable. As per the statements of Samadi (2017), in an organisation, it can be seen that there are several types of costs that are incurred in order to prepare a particular consumable element. The types of costs can be segregated as follows:

a) Fixed costs

2. Crucial Information for appliances purchasing. Irrelevant information to decision-making for purchases and reasons of irrelevance

With respect to the decision-making process of Franks related to appliance purchasing, it can be said that the company may have to aware of the relevant information. In that case, it has been understood that Franks may have the needs of determining the segment that can help to generate a maximum profit margin. Therefore, the information on costs related to the delivery, utilities, shipping, and operations have been known as the most relevant information that Franks may require. In addition to that, the information related to the costs incurred in picking up and delivering the laundry clothes are required for the respective company to take the decision for purchasing appliances.

At the other side, it can be said that the information with respect to sunk costs in that business of childcare are irrelevant information. This is because the sunk costs are not diversifiable in the business; therefore, the sunk costs cannot be considered under the section of profit or any type of earning of the company.

3. Calculations related to costs for laundry clothes

Case 1- Appliance purchasing

The total costs of the appliances can be determined as follows:

Total annual costs = Washer + Installation + Dryer + Delivery

Case 2- Laundry by self-service

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