Advanced Management Accounting Assignment Solution

ADVANCED
MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of purpose and presentation of financial information from the perspective of
different stakeholders..................................................................................................................1
M1 Reasons of developing and appropriately presenting financial information to support
financial planning and decision making......................................................................................5
D1 Evaluation of Financial information.....................................................................................6
TASK 2 ...........................................................................................................................................6
P2 Evaluation of use of different accounting microeconomic techniques in application to
supporting organisational performance.......................................................................................6
M2 Advantages and disadvantages of accounting techniques....................................................7
TASK 3............................................................................................................................................8
P3 The concept of variance analysis and its importance for organisational budget control.......8
P4 Analysis of actual and standard costs which helps in control and correct variances.............9
M3 Advantages and disadvantages of different types of variances..........................................10
D2 Application of accounting techniques and variances..........................................................11
TASK 4..........................................................................................................................................11
P5 Impact of external and internal factors upon management accounting...............................11
M4 Impact of different types of decisions made to respond to these changes..........................12
D3 Impact of changes recommendations for future communication........................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management accounting is a process of preparing managerial accounts and statements
which are prepared by an organisation in order to serve managerial accounting information
information to related stakeholders such as creditors, investors, debtors, customers, employees
and may more. In order to understand the concept of management accounting, an organisation is
selected named Airdri. This company is hand dryer manufacturers which is considered as
underperforming organisation. As a management consultant, various aspects of this branch of
accounting are discussed in this report. Various purposes along with the presentation of financial
information is discussed in this project report in order to evaluate different accounting techniques
and its applications. The concept of budgetary control and variance analysis is also discussed in
detail in this project. External and internal factors which impacts management accounting of the
chosen company is mentioned in this report (Beams, 2017).
TASK 1
P1 Analysis of purpose and presentation of financial information from the perspective of
different stakeholders
Financial information is data related to monetary aspects of an organisation. This
information includes various financial statements and accounts. Any material information which
can affect functioning of a business is included in financial information. Airdri is a hand dryer
manufacturing company which operates in United Kingdom and maintains its financial
statements in order to serve reliable financial information to different stakeholders.
Purpose of financial information:
The primary purpose of financial information is to provide data about actual financial
position and performance of a company. Airdri is a hand dryer manufacturing company which is
facing several issues of intense competition and continuous technology up gradation due to
which they have are experiencing decline in their profitability and growth. Data which is gained
by financial information used by stakeholders of an organisation which includes investors,
employees, creditors, debtors, shareholders, suppliers and many more. Purpose of financial
information from the perspective of stakeholders of Airdri is described below:
Investors – Investors or prospect investors are the parties which invest their money in an
organisation. Investors of Airdri can assess the viability of investing in a company by evaluating
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