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Running head: MANAGEMENT ACCOUNTING TECHNIQUESManagement Accounting Techniques[Student Name][Course Number & Title][Instructor's Name][Month Day, Year]1MANAGEMENT ACCOUNTING TECHNIQUESManagement Accounting Techniques Used by Marks & Spencer CompanyBackground of Marks & Spencer PlcMarks and Spencer was founded in the year 1884 in Leeds by Michael Marks and laterre-branded as Marks and Spencer ten years later after a partnership with Thomas Spencer (Marks& Spencer, 2018). Today Marks and Spencer is considered a leading multinational retailbusiness with over 1382 stores all over the world (Marks & Spencer, 2018). The main productsoffered by Marks and Spencer include clothing, home products and luxury food. The companysells the products both online and at their physical stores.Costing Systems used by Marks & Spencer PlcMarks and Spencer Company uses job order costing system to determine the cost per unit ofoutput. Job order costing is a costing method in which costs are accumulated and assigned into eachindividual jobs or products (Crosson, Accounting & Needles, 2016). The main costs incurred by Marks &Spencer include direct material costs such cotton, woolen products, meat products and others; laborcosts and overhead costs such as indirect material and labor. Each job started will be completed and theassociated costs accounted out separately. The costs are classified according to cost behavior. Thosecosts that are varies proportionately to the units of ...


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