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Role of Management Accounting and Its Principles : Report

   

Added on  2020-07-23

7 Pages987 Words46 Views
ACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................3Scenario 2........................................................................................................................................3Explanation about the importance of financial reporting for Para Sighting as a tourismcompany......................................................................................................................................3Calculation of the gross margin of the company using income statement report.......................3CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6

INTRODUCTIONManagement accounting is very crucial aspect within the organisation that helps toorganisation in managing financial performance of business. Management accounting is aninvestigation of bookkeeping, money related and administration which use particular businessability with a specific end goal to control the cost brought about by association (Ax and Greve,2016). In the current report, role of the management accounting and its several principles hasbeen discussed. In addition to this, responsibility of accounting and financial manager has beenalso discussed in this report.Scenario 2Explanation about the importance of financial reporting for Para Sighting as a tourism companyFinancial reporting involves several kinds of the financial information that can be use tovarious stakeholder about the financial position and financial performance of the organisationover a specified period. The major objective of the financial accounting is to deliver effectiveinformation to the management of the company (Brown and et.al., 2016). This informationassists to the Para sighting company in develop effective planning, analysing the performanceand taking business related decision in effective and efficient manner. In addition to this, withhelp of financial reporting, company can easily develop a systematic planning and analysing theperformance of existing business. This financial reporting also helps in providing information toinvestors, promoters, debts providers and creditors which is used to enable them to malerationale and prudent decision regarding investment and credit.In the Para Sighting company, financial reporting helps to the organisation to complywith various status and regularly requirements. This financial reporting assists to the organisationin raising capital both domestic and overseas (Daskalakis, Devanur and Weinberg, 2015). In thecited venture, with help of para sighting company, this financial reporting also helps indelivering information to various stakeholder regarding performance management of thecompany. It also assists to organisation in raising the capital both domestic and overseas.Calculation of the gross margin of the company using income statement reportQuarter 1Table 1: Income statement for marginal costingParticulars AmountAmount

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