Answer to Question No 1

Panopticism is a socio-theoretical and communal framework which was introduced by Michel Foucault, a French philosopher. The framework was named after Panopticon which is a model for external surveillance (Gane, 2012). Panopticon refers to the external laboratory of power with the application of which attitude and behaviour of individuals can be modified for the better and is considered to be a disciplinary course of action which involves surveillance. It is a course of disciplinary action which is used in case of prisons in order to implement discipline as a tool of authority. It is used for observation of prisoners and it is used as a source of data.

For example, the concept of panopticon can be used effectively for the purpose of surveillance which is a very much significant with the introduction and overall development of technology. The observable data which can be collected with the various data mining techniques and such data can be made available to the individuals and companies for the purpose of surveillance of data.

The use of Panopticism is very useful in management accounting as it can be used to keep track of every transactions and at the same time ensure that there are no mistakes or errors in such transactions (King, 2012). Even if there are certain mistakes in the process of accounting the same can be rectified and ensure that the accounting process remains authentic.

Answer to Question No 2

The major functions of management accounting are given below in details:

1. Planning: The method of planning is sued by the management to make short term and long-term plans for attaining a particular goal or objective of business. The management of the company is responsible for the planning process and also for the various important decisions which are to be taken by the business regarding various aspects such as allocation of funds, financing decision and other similar decisions. Generally, the most important tool which is used for the purpose of planning is budgeting (Chadwick, 2013). For example, the management accounting method employs the use of budget for planning process which is useful for deciding the targets and also measure the performance of the company. in addition to this, the budget is useful for planning for allocation of resources.
2. Organising: The method is used to establish the business model of the company as well assigning the different part of the plans to the various departments in pursuance of the objectives and goals of the business (Biege, Lay & Buschak, 2012). The managers of the companies are responsible to organise the process with the use of management accounting so that different departmental performance can be measured effectively. For example, the statements which are prepared by the management with the application of management accounting can be used to make decisions regarding operations, product and similar other decisions.
3. Controlling: This is one of the functions of management accounting which is used for evaluation, reviewing and correcting the results of the business. The process of controlling is executed with the use of various performance reports which is used to measure the performance of the business on the basis of standards set by the business (Zubakov & Mustafin, 2015).

Answer to Question No 3 

Rock band Van Halen has used the checklist in the process of control. In the case of rocker David Lee Roth who made an agreement with the rock band Van Halen. The application of checklist by the business is an effective measure for the control activities of the business. The application of checklist allowed the band to properly plan and implement the plans of the band. Moreover, it is useful in the effective maintenance of the resources. The rock band needs to carry the checklist in order to ensure that every resource such as instruments which are used for the performance is carried from one place to another. A checklist can also be used by the band to prepare a schedule for the performance of the band in different destination. In this way the band can make use of the checklist for the effective performance measurement and scheduling of the band.

Answer to Question No 4:

In case of a perpetual inventory system the sales and purchase of stocks are recorded immediately and the account displays the information accordingly. The process of perpetual inventory system continuously upgrades the inventory records (Bauer et al., 2012). For example, in case of a retail store which uses computerised system of inventory measurement can automatically update the inventory records about the raw material used and the final products which was sold with just a simple scan of the product. Thus, from the above discussions it is clear that there is no need to physical stock take (Berlemann & Wesselhöft, 2012).

Overtime refers to the additional working hours which the labourer works over the normal working hours of that labourer. In case of overtime the wages offered by the company are also above the normal working hours of the business. The amount can be treated in different ways by the management depending upon the nature of the situation. Generally such costs are considered as overhead costs and it depends on the numbers of overtime working hours of the labourer.

1. Journal Entries:

1. Ledger Posting:

 Answer to Question:

Traditional costing and Activity-based costing are different techniques which are used by the management for assigning the indirect expenses to the products. In case of both the processes, the indirect costs are projected and the same are allocated on the basis of the cost drivers which are most appropriate (Ray, 2012).  The basic differences between the two processes are on the points of complexity and accuracy which exists between the two processes. In case of traditional costing method costs are allocated on the basis of random aggregate rate and is less precise. These factors are covered up by activity-based costing techniques, however it is a bit on the complex side.

The benefits which are associated with ABC Costing techniques are:

1. The method improves the processes of organization  
2. The products which are not productive are recognized by the business by the use of this method.
3. The method of ABC costing is easy to understand
4. It is good for business

The disadvantages of ABC costing are as follows:

1. The implementation process of ABC Costing techniques is quite costly.
2. The chances of data misinterpretation are also there in case of ABC Techniques.

Reciprocal Method:

As per the allocation process,

1. a) Total Cost of S1 Department (x) = Direct Centre Cost of S1 + [20% x Total Cost of S2 (y) ]

Or, x = $20000 + (20% X y)

1. b) Total Cost of S2 Department (y) = Direct Centre Cost of S2 + [ 15% x Total Cost of S1 (x) ]

Or, y = $25000 + (15% X x)

Or, y= $25000 + [15% x ($20000 + 20%y)]

Or, y= $25000 + $3000 + 3%y

Or, y-0.03y = $28000

Or, 0.97y = $28000

Or, y = $28000/0.97 = $28868

x = $20000 + 20%y

Or, x = $20000 + (20% x $28868)

Or. x = $20000 + $5773 = $25773

Reference List 

Bauer, D. G., Campero, R. J., Rasband, P. B., & Weel, M. D. (2012). U.S. Patent No. 8,321,302. Washington, DC: U.S. Patent and Trademark Office.

Berlemann, M., & Wesselhöft, J. E. (2012). Estimating aggregate capital stocks using the perpetual inventory method: New empirical evidence for 103 countries (No. 125). Diskussionspapier, Helmut-Schmidt-Universität, Fächergruppe Volkswirtschaftslehre.

Biege, S., Lay, G., & Buschak, D. (2012). Mapping service processes in manufacturing companies: industrial service blueprinting. International Journal of Operations & Production Management, 32(8), 932-957.

Chadwick, G. (2013). A systems view of planning: towards a theory of the urban and regional planning process. Elsevier.

Gane, N. (2012). The governmentalities of neoliberalism: panopticism, post-panopticism and beyond. The Sociological Review, 60(4), 611-634.

King, R. D. (2012). Imprisonment: some international comparisons and the need to revisit panopticism. In Handbook on prisons (pp. 125-152). Routledge.

Ray, S. (2012). Relevance and applicability of activity based costing: An appraisal. Journal of Expert Systems (JES), 1(3), 7.

Zubakov, V. M., & Mustafin, A. N. (2015). The Controlling Process of the Human Capital through the Effective Redistribution of the General Welfare. Mediterranean Journal of Social Sciences, 6(1 S3), 270.