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Function of Management Accounting Imda Tech Limited

Added on - 14 Feb 2020

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MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1A- Report defining functions of management accounting....................................................1B- Define types of Management Accounting Systems...........................................................3TASK 2............................................................................................................................................5A- Income statement for marginal costing and absorption costing........................................5TASK 3............................................................................................................................................7A- Types of budgets with the advantages and disadvantages...............................................7B- Process of Budget preparation...........................................................................................9C- Pricing Strategies.............................................................................................................10TASK 4..........................................................................................................................................11A. I. Balanced Score Card and explain its implementation..................................................11A.ll. Role of Balanced scorecard in addressing the financial problems and enhancing thefinancial governance.............................................................................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
Illustration IndexIllustration 1: The budget process....................................................................................................8Illustration 2: Balanced Score Card...............................................................................................10Index of TablesTable 1: Income statement of absorption costing............................................................................5Table 2: Income statement of Marginal costing..............................................................................5
INTRODUCTIONThe management accounting aims at providing information to the managers to enablethem to take meaningful decisions for the company. The present report focuses on varioussystems that applies to Imda Tech Limited which is engaged in the production of the Specialcharger for the mobile telephone and other carry on gadgets and supplying the same to retailoutlets in UK and also uses various other systems which are cost accounting systems, inventorymanagement systems etc. however this also focus on the various types of budgets and itspreparation and also the balanced Score Card approach to address the problems in theorganization.TASK 1A- Report defining functions of management accounting.ReportThe management accounting is the founding tool for any business. It is aimed at gathering theinformation which will ultimately be helpful for the decision making. Imda tech being engaged inproducing special charger for the telephone and also carry-on gadgets for many retail outlets in UK and thisaims at creating strategies making policies for running the business effectively.It is very different from FinancialAccountingas this focuses on the preparation of financialstatements in order to provide the material information which will be required for the external uses to maketheir decisions, the transactions are of monetary nature and for this the reporting done to the internal as wellas to the external user so as to enable them to take decisions... (Cooper, 2016). In management accountingas the reporting is done only to the internal managementhas many functions to perform which are as follows:Forecasting-For determining the long and short duration goals for decision making, intern aids inproviding with information it which will ultimately be required for decision making.Coordination- The main aim for any organization is to earn profits as well as increasing theefficiency. To coordinate among various departments, best measures are to use the budgets, costingetc.Communication-Final results which are generated needs to be communicated to the management awith the help of reports and thus enabling to take appropriate decisionsAs this is a great tool for decision making as there are many decisions in the organization to be1
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