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Evaluation of Management Accounting System

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Added on  2020-10-23

Evaluation of Management Accounting System

   Added on 2020-10-23

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Evaluation of Management Accounting System_1
TABLE OF CONTENTSTASK 1............................................................................................................................................3P 3 Preparation of income statement and calculation of cost of production using marginal andabsorption costing techniques.....................................................................................................3TASK 2............................................................................................................................................8P4 Advantages and used disadvantage of different type of planning tool for budgetary control.....................................................................................................................................................8P 5 Evaluation of management accounting system as to responding to various financialproblems....................................................................................................................................10CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
Evaluation of Management Accounting System_2
TASK 1P 3 Preparation of income statement and calculation of cost of production using marginal andabsorption costing techniquesCalculation of opening and closing inventory using fifo methodParticularOpeningProductionSalesClosingYear 1040000360004000Year 240004800040003600012000Year 3120005100012000480003000Calculation of cost per unit for year 1MarginalAbsorptionDirect labour1616Direct material1212Direct variable expenses2020Fixed overheads1.6Total cost4849.6Income statement using marginal costing method (year 1)ParticularAmountAmountSales2520000Less:Cost of salesOpening stock0Production cost1920000Closing stock1920001728000Contribution792000Income statement using absorption costing method (year 1)ParticularAmountAmountSales2520000Less:Cost of salesOpening stock0Production1984000Closing stocck1984001785600Gross profit734400Less:Selling and distribution overheads10000Administration overheads1500025000
Evaluation of Management Accounting System_3
Net profit709400Less:Interest expenses1000Net profit after interest and taxes708400Calculation of cost per unit for year 2MarginalAbsorptionDirect labour1616Direct material1212Direct variable expenses2020Fixed overheads1.33Total cost4849.33Income statement using marginal costing method (year 2)ParticularAmountAmountSales2800000Cost of salesOpening stock192000Production cost2304000Closing stock5760001920000Contribution880000Calculation of cost per unit for year 3MarginalAbsorptionDirect labour1616Direct material1212Direct variable expenses2020Fixed overheads1.255Total cost4849.255Income statement using marginal costing method (year 3)ParticularAmountAmountSales4200000Less:Cost of salesOpening stock576000Production cost2448000Closing stock1440002880000Contribution1320000Income statement using absorption costing method (year 3)ParticularAmountAmount
Evaluation of Management Accounting System_4

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