Cost Management System

Question: Describe about the cost management system. Answer: Development of costing system recommendations in used cost products for Myer Costing system of Myer Ltd designs as well as monitors cost as incurred in business organization (Willcocks, Cullen and Craig 2011). It comprises of set of forms, process as well as control and reports for the same. It designs aggregate reporting management for Myer Ltd on matters relating revenues, cost as well as profitability in an overall manner. Myer Ltd retailing division focus mainly on dual system and refers as Omni-channel. It is recommended in optimization of physical as well as digital retailing aspects in the most appropriate way. It is advisable in valuation of inventory management by Myer Ltd. From the annual report, it arranges for using weighted average costing method for future analysis purpose. It involves in lower cost valuation as per net realisable values in proper ways (Dinsmore and Cabanis-Brewin 2011). It mainly records reduced cost of goods sold in inventory management system in the near future. It is recommended in using information by costing system for wid e variety of purposes. It includes fine tuning operations in generation of higher profitability in the most appropriate way (Vielhauer 2011). Myer Ltd should decide on cutting costs for business downturn. It matches actual costs in against budgeted cost levels in control process in proper ways. It creates strategic as well as tactical plans in case of future decisions in an effective way. It uses product costing as well as cost tracing and cost allocation in desired form. It reports for costing system in internal usage as well as subject with requirements in form of accounting frameworks like Generally Accepted Accounting Principles and International Financial Reporting Standards (Rains 2011). It is recommended in addressing Myer Ltd in types of information in distribution of consumptions. It creates reports for budget versus actual reports in cost imposing ways in an overall manner. As far as profitability reports are concerned, it deals with customers, sales regions as well as pro ducts and product lines in proper ways (Dinsmore and Cabanis-Brewin 2011). Selection of one product or product lines offered by Myer from annual report The selected product from Myer Ltd annual report is Shirts offered by the company. There was continuous strong performance in shirts and clothing category of Myer Ltd. It faces challenging condition in menswear shirts (Horngren 2012). There is even positive customer response from four major refurbishments for new stores for delivering strong growth in case of online sales for the same. It indulges in continued cost growth in sales growth in net profit after tax. Myer Ltd offers products like shirt at $45 to $560 to the targeted customers. New Myer Strategy is to attract primary customers in stores (Willcocks, Cullen and Craig 2011). It indulges in deep analysis for gaining valuable customers in the most appropriate way. Customers shop at Myer for regular visits for purchasing of shirts. Management establishes clear performance objectives in against delivering strategy. These financial metrics reflects timeframes for achieving sustainable returns for profitable growth. New Myer target metrics includes annual sales growth (Geiger 2011). Total Sales $ Billion 2011 3.2 2012 3.1 2013 3.1 2014 3.1 2015 3.2 Operating Gross Profit Margin Percentage (%) 2011 39.5 2012 41.2 2013 41.5 2014 40.9 2015 40.9 Net Profit After Tax $ Million 2011 16.27 2012 139.5 2013 127.2 2014 98.5 2015 77.5 Earnings per share Cents 2011 27.9 2012 23.9 2013 21.8 2014 16.8 2015 13.2 Myer Ltd represents an energetic revitalisation of Australia best loved retailer. It invests for more than $60 million in form capital as well as implementation costs for five years. It helps in delivering improved productivity and enhancing in-store experiences as well as market leading in Omni-channel capability (Fischer and Holbach 2011). It aims at customer led offers like re-allocating space wanted categories as well as brands for the same. It focuses on narrower range in Myer Exclusive brands. It engages in fine tune of merchandise and offering ways for allowing products as well as service localisation in an overall manner (Willcocks, Cullen and Craig 2011). Value Chain Model applied to mens clothing and derived from direct and indirect product cost values Myer value chain applies in support services in human resources, finance accounting, management as well as information systems and information technology for the same. In case of primary activities, it takes into account procurement and outsourcing of Men shirts in Myer Ltd (Eldenburg and Wolcott 2011). It relates with operations as well as marketing for smooth functioning of Myer Ltd. It indulges in distribution logistics as well as customers services in case of online and online stores for future analysis purpose. Myer Ltd is a company that indulges in proud heritage as well as bright future for the same. In the retail world, it ensures customers change and transforming Myer in delivering offers as well as wonderful experiences for the potential customers. It invests in New Myer Ltd in the next five years as well as delivering sharper and focused scenario (Dinsmore and Cabanis-Brewin 2011). It offers in serving ways for retaining valuable customers as well as drawing productivity a nd growth in an overall manner. It inspires delightful ways and relevant customer daily lives for future analysis purpose. It is founded on terms of advanced analytics of Myer customer base as well as store catchments in desired form (Willcocks, Cullen and Craig 2011). It uses data for better understanding customers as well as identification of great opportunity in achieving high sales and profit at the same time. The main strategies lie from main four priorities in support with organizational capability. As far as customer offer is concerned, it deals with providing brands and inspiring primary customers in creating halo effect in proper ways. It aims at attracting as well as retaining other customer groups (Dinsmore and Cabanis-Brewin 2011). It embraces ways for new retail environment in seamless omni-channel in the most appropriate way. It is necessary to evaluate ways in managing with value chain and retain in the global marketplace in an overall manner. Reference List Collins, R. (2011).Project management. New York: Nova Science Publishers. Dinsmore, P. and Cabanis-Brewin, J. (2011).The AMA handbook of project management. New York: American Management Association. Eldenburg, L. and Wolcott, S. (2011).Cost management. Hoboken, NJ: John Wiley. Fischer, J. and Holbach, G. (2011).Cost management in shipbuilding. KoÃÅ'ˆln: GKP Publishing. Geiger, D. (2011).Cost management and control in government. [New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press. Horngren, C. (2012).Management and cost accounting. Harlow [etc.]: Financial Times, Prentice Hall. Rains, J. (2011).Target cost management. Boca Raton, FL: CRC Press. Vielhauer, C. (2011).Biometrics and ID management. Berlin: Springer. Willcocks, L., Cullen, S. and Craig, A. (2011).The outsourcing enterprise. Basingstoke: Palgrave Macmillan.