management accounting

Management
Accounting

Introduction
 Management accounting is also known with managerial
accounting.
 Management accounting is quantitative process of analyzing
financial data of company before making any decision or to
prove a point with a market trend the financial data.

Content
• Introduction
• Calculation of costs using marginal and
absorption technique

Calculation of costs using marginal and
absorption technique
Amount
Opening Stock 0
Production 40000
Sales 40000
Closing Stock 0
Particular £
Sales (40000 x £ 25) 1000000
Cost of goods sales:
Opening Inventory 0
Sales 400000
Closing inventory 0 400000
600000
Variable cost 240000
Contribution 360000
Manufacturing Fixed cost 150000
Selling & Administration Costs(fixed) 210000
Profit 0

Absorption costing technique:
Amount
Opening Stock 0
Production 40000
Sales 40000
Closing Stock 0
Particular £
Sales (40000 x £ 25) 1000000
Production Cost of Sales:
Variable 640000
Fixed 150000 790000
210000
Selling & Administration Costs(fixed) 210000
Profit 0