Advanced Management Accounting Assignment Solved

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Added on 2020-12-09

Advanced Management Accounting Assignment Solved

Added on 2020-12-09

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ADVANCED MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................3LO 1.................................................................................................................................................3P 1. Purpose and presentation of financial information from the perspective of differentstakeholders............................................................................................................................3M 1. & D 1. Use of Financial Information in making financial plans and decision makingprocess....................................................................................................................................5LO 2.................................................................................................................................................6P 2. Evaluate different micro economic techniques to support organizational performancealong with its advantages and disadvantages.........................................................................6M 2. Evaluating accounting techniques by assessing both the advantages and disadvantages.. .8LO 3 ..............................................................................................................................................10P3 Analyse the concept of variance analysis and its importance.........................................10M 3. & D 2. Application of different accounting techniques and variances along withAdvantages and disadvantages.............................................................................................11P 4. Use of actual and standard cost to correct and control variances..................................12LO 4...............................................................................................................................................13P 5. & M 4. Effect of external and internal change on management accounting................13D 3. Impact of changes for future communication and acceptance of change.....................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17

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INTRODUCTIONManagement accounting is the presentation of accounting information which is used bythe managers of the company in formulating the policies and to assist day to day activities. Ithelps the company in planning, organizing, directing and controlling the activities of the business.Management accounting is useful to provide financial information to external as well as internalusers which it provides in the form of financial statements. This information is required bystakeholders of the company which includes employees, shareholders, customers etc. This reportwill include purpose and presentation of these financial information from the perspective ofdifferent shareholders. Moreover, it includes different micro factor techniques that supportperformance of the organization. These factors play a very important role in the organization,however to get through this the report will show concept of variance analysis and its importance.At last this report will include use of actual and standard cost to correct and control varianceswhereas the report will end summarizing effect of external and internal change on managementaccounting.LO 1P 1. Purpose and presentation of financial information from the perspective of differentstakeholdersFinancial information need to be provide to all the interested parties as it providesinformation about the financial position of the company which is used by large number of users tomake economic decisions. The purpose of financial information is to provide information aboutthe outcome of operations, financial position and cash flow of the organization. This helps theusers in allocating their financial resources. The company has different stake holders who needsinformation for different purposes. RBS Accountants is the CA firm in UK with offices in CanaryWharf, London. It has over 40 years of experience in all areas of business and finance (RBSAccountants UK, 2019). It has a vibrant and enthusiastic team that are reliable and provide swiftservice and strive value of money to its customers.It gives tough competition to its competitorsby offering quality and reliable services to the customers at suitable prices (Pradika, 2018). Thestakeholders of the company who are interested in getting information about RBS Accountants areits mangers, employees, shareholders, customers, suppliers, creditors, government, debtor etc.Different stakeholders need the information of the company for following reasons:

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Owners and investors – Owners and investors of the company are first users of theinformation. These are the people who are most interested in financial information of thecompany. It helps the owners and investors in making decisions in order to sell, hold or buy moreshares of the company. Investors need the information to assess and evaluate potential of thecompany to grab success and profitability. RBS Accountants is situated in London for many yearsnow and is located in Canary Wharf which is one of the city's main financial centers. and hence ithas many investors and this financial information help them in determining if the company willwant to continue, improve or stop operating (Lee, 2015). The financial information helps theowners in safeguarding their assets and they usually have access to all financial records and files. Management – They act as an agent of the owners and their motto is maximizing salesand profit of the company. The managers of the company need financial information to assist dayto day activities if the company and to ensure internal control on the organization. They are alsoconcerned about their won remuneration as if the company will not operate in profits, theirremuneration will be low and vice versa. Management have access to all records and thisinformation help them in taking regular decisions related to liquidity, profitability and cash flowof the company.Competitors – Companies which are in competition against a business will attempt to gainaccess to the financial information of the rivals to analyze and evaluate their financial position.The inside information helps the company in formulating their strategies and to have competitiveadvantage over other firms (Schweisfurth, 2017). Every company for this purpose strengthen theirsources to find out the information of other companies to maximize their market share andprofitability.Employees – Employees need to know about the financial information of the company inorder to know where the company stands, how secure the job is, and how possible can the payrise, how often they can get promoted etc. RBS Accountants has limited employees but they aretrust worthy and honest and provide swift services to the customers of the company. Employeesare all interested in company's profitability and stability so that company can provide them withbonuses and employment benefits. Employees are also interested in knowing financialinformation so that they can assess company expansion and career development opportunities andcan compare companies to know that they are placed in the best company or not.

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Advanced Management Accounting Assignment Solved