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Difference Between Management Accounting and Financial Accounting : Report

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Added on  2020-07-22

Difference Between Management Accounting and Financial Accounting : Report

   Added on 2020-07-22

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MANAGEMENTACCOUNTING
Difference Between Management Accounting and Financial Accounting : Report_1
Table of ContentsINTRODUCTION...........................................................................................................................1Task 1...............................................................................................................................................11. Management accounting and its differences between financial accounting:..........................12. Importance of management accounting information:............................................................2Different types of management accounting:...............................................................................3M1 Benefits of management systems under the cited company context:...................................4D1 How MA system and MA reporting integrates within the firm process:..............................4TASK 2............................................................................................................................................4M2 Application of techniques:....................................................................................................6D2 Interpretation of data:............................................................................................................6TASK 3............................................................................................................................................6a). Budgets and its advantages and disadvantages:....................................................................6b). Process of preparing budgets:................................................................................................8C). Pricing strategies:..................................................................................................................9M3. Analyse the use of various planning and their application:.................................................9D4. Planning tools helps the firm to attain sustainable advantages:...........................................9TASK 4............................................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11Books and Journals:..................................................................................................................11
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INTRODUCTIONManagement accounting system is the main tool which is used by the company to attainthe business long term objectives. Now, this has been observed that the IMDA tech wants toattain its objectives which can mostly achieved by using management accounting system. Withthe help of management accounting, IMDA tech can produce electronic gadgets in a mosteffective manner (Quagli, 2011). Now, management of IMDA tech due to lack of financialinformation, it faces various decisions that is why it is not to make decisions effective. But, afterimplementing management accounting tools, company is able to frame better strategies so thatthe fime decisions could be attained.Task 1A). 1. Management accounting and its differences between financial accounting:Management accounting helps the firm to generate information internally and it alsocovers sourcing, analysis, communication and implement of financial and non-financialinformation decisions in order to build and procure value for firms (Management Accounting,2017). As, this covers accounting, finance and management by taking help of business skills andother essential techniques that the management accountant is required to add genuine value toany firm (Hutaibat, K.A., 2012). They are the well qualified person which do works across thefirm, not only in finance, but also on the overall field which are needed to make businessoperations effective. They implement information of various types which could lead to formbusiness strategy and able to gain the sustainability. Difference between management accounting and financial accounting: Financial accountingManagement accounting Frame reports which is totally based on the previousperformance; in line with reporting needs.Gather information like asprofits, cash flow and duedebts to manufacture trendreports within a time frameand statistics in order to informimperative,regularmanagement and firm1
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decisions. Frame the essential financial information which are required tobe use by the other department for their work execution. Under this, the financial withnon financial information toframe an entire view of thefirm. They implementmanagement accounting toattain the business success.Financial management is the narrower concept than themanagement accountant which only covers financialinformation. Management accounting is thebroad concept which coversthe financial and non financialinformation that are required toknow by the firm managementand top level authorities inorder to frame their decisions(Zadeh, 2011).Financial accounting reports are after complying variousregulatory standards which have been set by these regulatorybodies. Under this, there is not set ofstandard which have to befollowed by the firm whilemaking this report. 2. Importance of management accounting information:The management accounting information is becomes the integral portion of themanagement of IMDA tech. As, this guides and suggest management at each step. This is notonly enhance the efficiency of the firm management but also employees of the firm (Hopper andBui, 2016). The most important advantage of this are mentioned hereunder:Identify of Aim: With the help of information available, management accountantidentify its targeted goals and also to find out the way by which this could attain the goals. Assist under the form of plan: MA assist top level authorities to frame the plan in orderto make their business objectives. But before going to make any plan, the manager is required tohave the proper analysis of the present and future market scenario. 2
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