Management Accounting: Costing Techniques and Planning Tools

MANAGEMENT ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Calculating costs by applying different costing techniques for preparing income statements1
TASK 2............................................................................................................................................8
a) Explaining the use of planning tools used in management accounting..............................9
Analysing use of planning tools and implications in preparing and forecasting budgets ....9
c) Evaluating how organisations are adapting management accounting for responding
financial problems..................................................................................................................9
d) Analysing how management accounting leads organisations to sustainable success........9
e) Evaluating how planning tools helps in solving financial issues.......................................9
a) Explaining the use of planning tools used in management accounting............................10
Analysing use of planning tools and implications in preparing and forecasting budgets . .12
c) Evaluating how organisations are adapting management accounting for responding
financial problems................................................................................................................13
d) Analysing how management accounting leads organisations to sustainable success......15
e) Evaluating how planning tools helps in solving financial issues.....................................15
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Management accounting is the technique or process of representing the financial
information in the most discrete way that could help the management in taking rational decisions
for the company (Kaplan and Atkinson, 2015). The present report is going to discuss the
difference between marginal and absorption costing, reasons for variances in net profit
calculations under these methods. Further the report will cover planning tools of budgetary tools
and how management accounting helps organisations in responding to their financial problems.
TASK 1
Calculating costs by applying different costing techniques for preparing income statements
Income statement 1st year (marginal costing)

Profitability statement as per marginal costing for 2nd year