FNSACC507 | Provide Management Accounting Information

Running head: PROVIDE MANAGEMENT ACCOUNTING INFORMATION
FNSACC507 Provide Management Accounting Information
Name of the Student:
Name of the University:
Authors Note:

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Table of Contents
Task Description:.......................................................................................................................2
Answer 1:...................................................................................................................................2
Answer 2:...................................................................................................................................2
Answer 3:...................................................................................................................................3
Answer 4:...................................................................................................................................3
Answer 5:...................................................................................................................................3
Answer 6:...................................................................................................................................4
Answer 7:...................................................................................................................................4
Answer 8:...................................................................................................................................5
Activity 1:...................................................................................................................................5
Activity 2:...................................................................................................................................6
a. Preparing the general journal entry for the distribution of the gross wages:.........................6
b. Preparing the entries in general journal form to record the gross factory pay for the month
and the payment for net pay:......................................................................................................6
Activity 3:...................................................................................................................................6
a. Prepare a flexible budget for 3500 and 4000 machine hours:................................................6
b. Calculate the overhead application rate for fixed and variable costs:....................................7
References and Bibliography:....................................................................................................8

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Task Description:
Answer 1:
Management accounting mainly comprises of reports such as balance sheet, cash flow
statement and profit & loss statement, which help in providing all the relevant information
regarding the organization and its financial conditions to the stakeholders.
The three examples of information that management accounting provides are balance
sheet, cash flow statement and profit & loss statement.
The key management accounting information requirements is to adequately plan and
formulate the future policies, which can help in interpreting development financial
information of the company. The companies require to provide all the relevant information
while preparing the financial statements, as the investors reply on the information to make
investment decisions (Ismail and King 2014).
Answer 2:
There are differences between the direct and indirect cost, which can be analyzed on
the diverse aspect that are depicted as follows.
 Direct cost is the overall expenses that can be identified easily as per the cost objectives.
On the other hand, indirect costs are expenses that are not easily identified as per the cost
of objective.
 Direct cost has a particular cost object why indirect cost has multiple cost objects.
 Direct cost can also be identified as the variable cost incurred by the organization, why
indirect cost are mainly considered as fixed cost.