Manage Operations and Finance

Running head: MANAGE OPERATIONS AND FINANCE
Manage Operations and Finance
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MANAGE OPERATIONS AND FINANCE
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Table of Contents
Role of Management Accounting in Business..........................................................................2
Difference between Management and Financial Accounting...................................................3
Different Models of Costing which is used in Operational Management.................................4
Application of Investment Appraisal Techniques.....................................................................5
Budgeting process and its Role in Business............................................................................10
Usefulness of Balanced Scorecard......................................................................................13
Balanced Scorecard of Cucumber Ltd.....................................................................................14
Reference.................................................................................................................................16

MANAGE OPERATIONS AND FINANCE
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Role of Management Accounting in Business
Management accounting may be defined as the process by which the top-level
management of a company takes appropriate decisions regarding the operations of the business.
In other words, management accounting process is used by top level managers of a business for
the purpose of analyzing, planning, identifying key financial information on the basis of which
the management of the company would be taking major decisions for the business (Sunarni
2013).
Management accounting system in today’s world is significant as many organization has
different set of goals and objectives which can be effectively considered with the help of
management accounting tools. Management accounting tools effectively help in the planning
process and also allocation of resources of the business in order to generate maximum results
from the same (Hilton and Platt 2013). The main objective of management accounting system is
to achieve the strategic goals of the business which would in turn help the business to achieve the
desired profits and also meet the quality which is expected by the customers of the business
(Fullerton, Kennedy and Widener 2014). Therefore, it can be said that management accounting
process provides the means to the management of the company for taking major decisions of the
business.
Difference between Management and Financial Accounting
Basis of Comparisons Financial Accounting Management Accounting
Definition Financial accounting may be
described as the process
which is used for classifying
and presenting financial
Management accounting
provides relevant information
to the top-level management
of a company so that major

MANAGE OPERATIONS AND FINANCE
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information in the financial
statements which is prepared
by the business (Francis,
Hasan and Wu 2013).
decisions can be taken by the
management of the company
regarding the operations of
the business.
Need The financial accounting
process is considered to be
compulsory and it is
mandatory for the
management to use the same
for preparing the financial
statements of the business
(Henderson et al. 2015).
Management accounting
process is used for collecting
information regarding the
business and on the basis of
the same important decisions
are taken by the management
of the company.
Nature of Information Monetary Information is
collected
Non-Monetary Information
and Monetary information are
also collected.
Time Frame The financial reports are
prepared at the end of each
financial year
Management reports are
prepared by the business
whenever the management
feels the need to prepare the
same.
Regulated Financial reports of a
business are highly regulated
Management reports of a
business are not regulated and
are used by internal