Management Accounting and Financial Planning for Higher Profitability

Management
Accounting

INTRODUCTION
The concept of management is a practice of making report in which helps for succeed
activities to organisations that helps managers for making the company's decision. Management
accounting helps company for managing its financial reports for its better performance which
gives higher results for the company (Pelz, 2019). Management accounting helps company for
organising its resources in the way which helps it for accomplish its objectives which helps
company for higher profitability. It has various functions such as planning, organising,
managing, controlling, budgeting etc. It helps managers for assessing company's act which helps
it for accomplish its objectives. Management accounting is the source which helps for
maintaining company's transactions for its better performance which gives its higher
profitability. Company which use management accounting for making its higher profitability.
The company which is includes for this report is Prime Furniture. It is the growing East London
bases company which is planning for starting training course. This report includes topics which
are management accounting system and necessary requirements of this, methods of management
accounting reports, marginal and absorption costing in order to price style. Other than this it
includes limitations and benefits of various form of planning instrument and how entity adapting
management accounting system in state to financial effort.
TASK 1
P1: Management accounting as well as different types of management accounting system with
essential requirements:
P2: Different methods for management accounting reporting:
TASK 2
P3: Calculating marginal along with absorption costing to devise income statements of company
Costing is a mechanism that helps company to identify its costs elements for businesses.
It helps for assessing the value of the customs, geographic, location, channel of medium,
commodity, processes etc. In context to Prime furniture as the furniture company it helps for
developing its costs which helps company for accomplish its objectives. Company assessing its
costs for running its activities for managing costs which gives higher profitability for the
businesses (Bennett and James, 2017).
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Marginal costing: It is a activity in which a company use for its overall price that extra
units are produces. It includes variable costs that occurs when the goods, services are produces. It
views the variable costs which includes for the goods.
Absorption costing: Absorption costing is the process for manufacturing costs which
includes total costs for the businesses. It views the costs which are includes for the businesses for
running its activities. It helps for assessing costs which helps for higher profitability for business.
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