Budget Report | Essay | Management Accounting

Management accounting, Unit 5 May 2018 Formative Assignment. P2
Complete the structure to the best of your ability, based on the information about the
assignment case study you have already been given. Bring it to your intern deadlines. If you
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Explanation of the budget report and example of Budget Reports
A budget can be defined as a technique that is implemented by the organization in order to be
proactive of its actions. The budget runs on figures and hence, it is important to understand
the difference between the budgeted as well as actual performance of the business. The
sample of the budget report can be found below. Budgets can be prepared quarterly or
annually as well (Chohan, 2017).

Explanation of the accounts Receivable Aging reports and why it is important
Accounts receivable aging report is one of the important reports that can display the
performance of the accounts receivables. The accounts receivables can be termed as clients to
whom the sales is made on credit and hence, the cash is to be received back by the firm.
Under the accounts receivable aging report, the cash inflow is understood on the basis of the
credit terms assigned to each debtor and hence, it becomes important for the firm to record
which customer has paid and which customer will become insolvent as it affect the cash
position of the company (Griffiths, 2020).
Inventory reports and different methods that are used to calculate the value of
inventory
FIFO technique for the valuation of the stock is where the stock is sold on the standard of
first cum first premise. Under this technique if the stock units from the past part have been
remaining and simultaneously the new units are bought the stock is sold from the past parcel
first, at the past rate. This procedure proceeds in the comparative way (Ye and Karali, 2016).
LIFO technique otherwise called last in first out strategy is the procedure which is
represented by the proper accounting rules. Under this strategy the latest items are being sold
on the principal premise. In spite of the fact that the LIFO bookkeeping technique may bring
about decline of benefits of the firm, and it can likewise mean decrease in corporate
assessment an organization is required to pay.
Average cost of the stock is likewise one of the techniques to record the stock and it has been
figured by separating the complete expense of products ready to move by the all out units
ready to move.