Your written report should be from 2500 - 3000 words and include the following:1- Introduction:This report presents details the process we have been through in planning, organizing a field trip to gather accounting information about the company which we have selected. The report starts by providing information on the history of the company, type of organization, main activities, products and customers, employment policies such as Emiratization, employee training, number of employees etc. Then moves on to accounting information on the accounting software use by our company and then moves onto explaining Fixed Assets, Accounts Receivable, Inventory Management, corporate governance and Internal controls.After the accounting information the report equips the reader with Cost Management/Managerial Accounting Information i.e. Costing Method, different types of Costs, assignment of Overhead to products, cost volume profit analysis and responsibility accounting system.1.1 History of the Company:Our company is one of the oldest diary companies operating in UAE, they have the largest dairy farm in UAE and aim to be the leading and most trusted dairy brand in the UAE. The organization we visited is engaged in providing the consumers with fresh, high quality and wholesome dairy products packed with natural goodness.

1.2 Type of organization, Main activities, products and customers:The organization visited is a dairy, and is involved in the business of selling milk products. Buying, selling and raising animals, buying and selling feed for animals are few of the activities in which the visited organization is involved. The customers of the visited organization are all those people in UAE who consume dairy products.PRODUCT LINEThe organization visited has the following product line:MILKYOGHURTLABAN

Fresh MilkYoghurtLaban

Long life MilkYoghurt DrinksLaban Drinks

Flavoured Milk

Skimmed Milk

Camel Milk

1.3 Employment Policies:Emiratisation remains one of the key priorities of the visited organization, as in UAE the government continuously promotes Emiratisation with new laws promising hefty fines for ghost Emiratisation as well as incentives for increasing nationalisation percentages.The company we visited has a policy of hiring UAE Nationals in every department and maintaining a percentage of UAE Nationals in their workforce. The organization visited has different training programmes for their employees, which are:1- Management Trainee Programme2- Sales Training3- Health & Safety Concerns Training during workThe visited organization has 70 employees working in the organization.2- Accounting Information:Accounting information plays a vital role in the success of a business as stated by Hall, J.A. (2011); accounting manages the financial information resource of the firm and plays two critical roles in transaction processing:A. Accounting catches and records the financial effects of the economic events. These economic events continue the firms transactions, these events include the following:a. Moving raw materials from warehouse to production, b. Shipments of the finished products to customers, c. Cash flows into the firm and deposits in the banks, d. The acquisition of inventory, e. The discharge of financial obligations.B. Accounting also sends transaction information to operations, enabling the operations to coordinate many of their key tasks. The following financial functions have a direct contribution in business operations:a. Inventory Controlb. Cost Accountingc. Payroll accounts payabled. Accounts receivablee. Billingf. Fixed asset accountingg. General LedgerFurther states that the value of information to a user is determined by how reliable is the source providing the information and also the reliability of the information itself. Reliable information must process certain attributes such as:a. Relevanceb. Accuracyc. Completenessd. Summarizatione. TimelinessTherefore we can deduce that AIS (Accounting information system) are vital in the performance of any organization, and must have all the attributes discussed above. 2.1- Accounting Information System:Accounting Information systems have developed overtime and have transformed into ERP (Enterprise Resource Planning) Software. There are thousands of different AIS available in the market and the cost of owning, running and maintaining AIS has dropped to its lowest, now every business could afford AIS. Some of the available AIS are as follows:1- Intuit Quick Books2- Sage 50 (Peachtree)3- Kash Flow Accounting Software4- MYOB5- Clear Books (Online Accounting)6- Real Soft (Coral Lite Accounting Software)7- Real Software SystemsThe organization which we visited uses Real Soft which is one of the best AIS available in the market. 2.1.1- Advantages of the used AIS:Real Soft has comprehensive accounting tools, smart forecasting & reporting tools which help in proper Financial Forecasting for improved future planning. It also allows the organization to password protect authentication to prevent unauthorized access and database record backup. Real Soft is very precise in calculation of Balance Sheets, Trial Balance, Financial Bills and Profit/Loss details and it does all that in fewer steps.

Real Soft also has basic accounting features including accounts payable, accounts receivable, general ledger, payroll and trial balance. It also allows the visited organization to do custom invoice designing and automated billing process while supporting features like Multi category, multi currency & multi-user properties. It also provides a comprehensive costing solution as described at Coral-Lite Accounting Software, (n.d.).2.1.2 Problems of the used AIS:According to the organization we visited Real Soft has all the qualities listed above but fails to provide solution for HR. Actually the used AIS does not incorporate HRIS (Human Resource Information System), hence the organization is having problems to perform HR functions. As described earlier the move to ERP (Enterprise Resource Planning) software allows an organization to manage everything at one platform like:1. CRM (Customer Relationship Management)2. AIS (Accounting Information System)3. HRIS (Human Resource Information System)2.2 Fixed Assets:Fixed Assets are distinguished by the following characteristics (Laughlin, R. & Gray. R.H.,1988, p.155):a. They last for at least more than one accounting period.b. They provide infrastructure for the operations subsystemc. They contribute to the operations subsystem as a whole rather than in discrete bits.Therefore different types of Fixed Assets are:i. Landii. Buildingsiii. Machineryiv. Equipmentv. Vehiclesvi. Furniture and fittings The following table - 1 shows the list of Fixed Assets the visited organization has along with their estimated useful life:

Table 1 - Fixed Assets and their Useful Life owned by the visited organizationFIXED ASSETSESTIMATED USEFUL-LIFE (YEARS)

Building10

Machinery5

Tools3

Fixtures5

Hardware3

2.2.1 Salvage Value and Used Depreciation Method:Firms initially record fixed assets at acquisition cost, the cash paid or the fair value. Acquisition cost includes all costs necessary to prepare the asset for its intended use. Buildings and equipment have a finite life, so firms must depreciate their acquisition cost less estimated salvage value over the expected service life. Firms may use any of the following methods as noted by Stickney, C.P., Weil, R.L., Schipper, K. & Francis, J. (2010).1. Straight Line Depreciation Method2. Accelerate Depreciation MethodThe organization we have visited follows the international standard of Straight Line Depreciation Method to account for the salvage value of Fixed Assets. The following figure - 1 graphically presents the straight line depreciation method.

Figure 1 - Example Straight Line Depreciation Method

2.3 Accounts Receivable:When a company assigns its accounts receivable to a financial institution, it enters into a lending agreement with the institution to receive cash on specific customer accounts as noted by Nikolai, L.A., Bazley, J.D. & Jones, E.P. (2010).The company we visited also has account receivables and out of all transactions 95% are on credit and only 5% are on cash, which shows that a large chunk of companies cash inflow relies on account receivables in fact 95%. The company must assign its account receivable to a financial institution in order to make sure that all receivables are received on time.2.4 Inventory ManagementInventory of an organization is just like money for that organization hence proper management system is required for Inventory Management. To gain physical location and control of inventory following systems could be used:a. Common Locator Systemsb. Memory Systemsc. Fixed Location Systemsd. Zoning Systemse. Random Locator Systemsf. Inventory Stratificationg. Family groupingThe company which we visited informed us that historically they never had any Inventory Management System in place which can handle stocks. Now they have an active Inventory Management System which helps them to control and manage inventories.Banerjee, B.K. (2010) states that there are two methods of stock taking, which are periodic and continuous/perpetual method. The periodic method is less expensive to use than the perpetual method, but the perpetual method provides useful information which are not provided by the periodic method. Such as to attain control over materials, it is essential to know stock position of every item of materials at any time. Such type of information is only provided by the perpetual inventory system. The company which we have visited uses Periodic Inventory system for inventory management, because its cheaper to use and less complications are involved.There are three most commonly used cost flow assumptions while issuing stocks from stores which are:1- LIFO2- FIFO3- Average CostingThe company we visited uses FIFO inventory costing method for the long life milk section. The goods which they make during the day do not come in inventory as they are shipped straight after production.3- Corporate Governance and Internal Controls:Risk has been defined as the possibility of loss as a result of the combination of uncertainity and exposure flowing from an investment decision or a commitment. Uncertainty can however, result in gain as well as loss. To manage uncertainty and risk internal control plays a vital role, the company directors should conduct a review of the effectiveness of their internal control systems and should report this information to shareholders (Combined Code, 1998). The company we visited had internal controls in place like whenever stores receives a product it registers it and issues it a serial number, with the help of the serial number that particular product/item could be tracked anytime. Accountant also keeps the records of bills, vouchers and other details of the product. Hence we learned that they have a very intelligent Internal Controls to prevent fraud.The company also has an internationally recognized external auditor, and all the accounts are audited accounts guaranteeing transparency. The company is very conscious about their carbon foot print to avoid any future legal proceedings against the companys operations, products or any other activity increasing carbon footprint. Also they are aiming to cut the cost of carbon in their business and to maximize sales & marketing opportunities.The company we visited has an Environmental Management Accounting (EMA) system, they have adopted management of environment and economic performance through the development and implementation of appropriate environmental related accounting systems and practices. The organization we have visited is determined to control the following environmental costs:a. Prevention costsb. Detection costsc. Internal failure costsd. External failure costs

4- Management Accounting:Management Accounting differs from Financial Accounting because Management Accounting provides information about costs. Management Accounting records, measures and reports all the information about costs. The primary function of Cost Accounting is cost ascertainment and its use in decision-making and performance evaluation as stated by Khan, M.Y. & Jain, P.K. (2007).4.1 Costing Method used:The organization visited uses Unit Costing Method to calculate its Total Cost. Unit Costing method is also known as Single Output Costing. Because the organization we visited has a continuous manufacturing activity hence Unit Costing is very suitable for them, also because they have products which can be divided into identical quantitative units, which is another reason for them to use Unit Costing. Hence the company uses Standard Costing Methods.

4.2 Types of Costs:The type of cost has a direct effect on decision making and there are thre types of manufacturing costs, which are Direct Materials, Direct Labour and Manufacturing Overheads. Manufacturing overheads include all indirect costs.The company we visited had different types of costs and some of them are:1. Manufacturing Overheads - In-Direct Labour Sales Management2. Direct Materials Raw Materials Packing Cost3. Direct Labour Labour CostSales Management is an indirect cost because it does not contribute in the manufacturing process directly and is incurred while trying to sell the product consequently it is classified as indirect cost and will be included in manufacturing overheads.Raw Materials is a direct cost and packing is a process which is a part of manufacturing and has a direct involvement in the manufacturing process hence classified as Direct Materials , which is a direct cost.4.3 Assignment of Overhead to Products:Assignment of overheads to products could be done with the help of following assignment methods:a. Activity Based Costingb. Traditional/Volume Based Costingc. Job Order Costingd. Process Costinge. Variable Costingf. Absorption CostingThe organization which we visited uses traditional costing methods, the company allocates overheads based on direct labour hour. Because in the organization visited Direct Labour an Direct Material are the predominant factors of production, also the in the industry the technology is stable and the range of products produced by the organization visited is very limited. Hence they use traditional costing method of sharing overheads on the basis of direct labour hour.In the organization visited the labour was the component which dominated total manufacturing costs which was another reason the visited organization preferred to use traditional costing. The focus of the management in the organization visited was entirely on controlling the direct labour costs, another reason for them to use traditional costing method.4.4 Decision Making:Decision Making based on information provided by costing information plays a vital role in manufacturing. Ordering raw materials, clearing finished goods of the floor, managing inventory and managing the labour all these functions require accurate and timely decision making. The company we visited actively uses information obtained from their traditional costing system in decision making, recently they took decisions to reduce indirect cost/manufacturing overheads. The costing information also allows them to decide whether to jump start a promotional campaign or not and to track the cost arising from promotion of the product. Since promotion will also fall in the category of indirect cost hence reducing indirect cost is what plays a vital role in reducing the total cost of any manufacturing setup.

4.5 Cost Volume Profit (CVP) Analysis:CVP analysis plays a vital role in pricing decisions, such as questions like how can u make money by selling a product, which is in fact a very tricky business in todays competitive business environment, are all answered by CVP analysis. CVP analysis is more important for smaller companies, smaller businesses are much more affected with pricing mistakes because all their efforts are concentrated on only few products or in some case a single product, hence pricing decisions are vital in smaller business. Comparatively larger business have a room to make pricing mistakes because they spread their risks over many product lines, so a mistake on one products pricing will not have as much effect as in the case of smaller companies. Unfortunately the company we visited is not using CVP analysis.4.6 Responsibility Accounting System:Responsibility accounting is used to measure the performance of people and departments to foster goal congruence. The company we visited has implemented responsibility accounting by creating responsibility centres, which is a subunit of the organization whose manager is held accountable for specified financial results. There are four Responsibility Centres in the organization we visited for the application of responsibility accounting, which are:Cost CentreCost Centre is the segment of the organization visited which has control over the incurrence of costs.

Revenue CentreRevenue centre is the segment is responsible for the revenue of all units in the organization visited.Profit CentreProfit Centre segment has control over both costs and revenues in the organization visited.Investment CentreThis segment has control over profits and invested capital.We have learned that the organization has applied responsibility accounting.

5- Conclusions:We have learned that the company we visited relies on accounts receivables, because 95% of their business is on credit. To reduce headaches of getting paid on time they need to assign its receivables to a financial institution. This will help them in collecting receivables on time will also help in decision making.Its time for the organization to move to a better MIS (Management Information System) which can provide all the information like CRM, AIS and HRIS in one platform, to resolve issues faced by the organization employees while trying to perform HR functions using Real Soft.CVP Analysis as described earlier plays a vital role in pricing decision and the company we visit is not using CVP analysis, which poses a risk that a wrong pricing decision could be made. The organization needs to adopt CVP analysis in order to come up with competitive prices, calculating break evens will also help the organization in launching promotional offers.The company should also have internal audits to increase transparency and reduce inefficiencies in the costing system.Over all the visit to the company has provided vital information on how the concepts in our course were applied by the company visited and which other steps they should take to become market leaders.

References:Hall, J.A. (2011). Accounting Information Systems. (10th ed.). USA: South-Western Cengage LearningLaughlin, R. & Gray. R.H.(1988). Financial Accounting: Methods and meaning (M.S.Wilson, Ed.). London: Richard Clay Ltd.Stickney, C.P., Weil, R.L., Schipper, K. & Francis, J. (2010). Financial Accounting: An Introduction to Concepts, Methods, and Uses. USA: South-Western Cengage Learning.Nikolai, L.A., Bazley, J.D. & Jones, E.P. (2010). Intermediate Accounting. (11th ed.). USA: South-Western Cengage Learning.Coral-Lite Accounting Software, (n.d.). Real Soft. Retrieved from http://www.realsoft.in/index.php/products/accounting-softwareBanerjee, B.K. (2010). Financial Accounting: Concepts, Analyses, Methods and Uses. (1st ed.). New Delhi: Rekha Printers Private Limited.Combined Code (1998). Corporate Governance: The Combined Code 1998 as a Standard for Directors Duties. Retrieved from http://telc.jura.uni-halle.de/sites/default/files/altbestand/Heft25.pdfM.Y. & Jain, P.K. (2007). Manaement Accounting: Text, Problems and Cases. (4th ed.). New Delhi: Tata McGraw -Hill.

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