Advanced Management Accounting

Running head: ADVANCE MANGEMENT ACCOUNTING
ADVANCE MANGEMENT ACCOUNTING
Name of the Student:
Name of the University:
Author Note

1ADVANCE MANGEMENT ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Section 1.....................................................................................................................................4
LO 1:- Purpose for developing and presenting financial information.......................................4
Purpose for developing the financial information..................................................................4
Purpose for presenting the financial information...................................................................5
Section 2.....................................................................................................................................7
LO 2:- Uses of management accounting techniques..................................................................7
Evaluation of Management Accounting Techniques to support............................................7
Microeconomics Techniques.................................................................................................7
Cost Analysis.........................................................................................................................7
Cost-Volume-Profit Analysis.................................................................................................7
Flexible Budgeting.................................................................................................................8
Cost Variances.......................................................................................................................8
Absorption Costing................................................................................................................8
Marginal Costing....................................................................................................................9
Cost Allocation.......................................................................................................................9
Capital and Capital Budgeting...............................................................................................9
LO 3:- Actual and Standard Costs to Control and Correct Variances.....................................10
Actual Costs.........................................................................................................................10
Standard Costs......................................................................................................................11
Variances..............................................................................................................................11

2ADVANCE MANGEMENT ACCOUNTING
Controlling and correcting variances...................................................................................12
Section 3...................................................................................................................................12
LO 4:- Changing business environment impacts on management accounting........................12
Business environment impact on Management Accounting System...................................12
Effect of external and internal factor impact on MAS.........................................................13
Impact of different type of changes.....................................................................................13
Recommendation..................................................................................................................14
Conclusion................................................................................................................................14
References and Bibliography...................................................................................................16

3ADVANCE MANGEMENT ACCOUNTING
Introduction
This report consist the three sections. The first section of the report discuss about the
purpose for developing and presenting financial information of the company. The purpose of
presentation of the financial information of the company in the stakeholders prospective. The
report also how and why financial information should be developed and properly presented to
support financial planning and decision making for the different stakeholders of the company.
This also critically evaluate financial information supported by the effective and appropriate
judgements. The main objective of this section is to ascertain the need of the financial
information for the different stakeholders of the company and how this can affect the decision
making process of the stakeholders. The second section of the report evaluate the use of
management accounting techniques to support organisation performance. It also evaluates the
use of different accounting micro economic techniques in application to supporting
organisation performance. Further, this report evaluate the value and importance of a wide
range of accounting techniques by assessing both advantages and disadvantages. Further this
report analyse actual and standard costs to control and correct variances (Taieb and Atiya,
2016). The report also evaluate the value and importance of a wide range of accounting
techniques in application to supporting organisational performance along with advantages
and disadvantages of the various range of accounting techniques along with the advantages
and disadvantages of different types of variance. While, the last section of the report
evaluates that how a changing business environment affects the management accounting.
This section of the report evaluates how the internal and external factors changing the
business environment affects upon the management of the company. Shows the implications
for management accounting. Along with the effect of different type of change in the
management of the business. Further, this report also provides the recommendation for the
future communication and acceptance of change for the business. The chosen company is