Management Accounting: Analysis of Amana Ltd's Performance and Decision to Go Online

Management
accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
Monthly Control report of Amana Ltd........................................................................................3
Report on Amana's performance during the year 2020...............................................................4
Recommendations for improvement...........................................................................................4
PART B............................................................................................................................................6
Analysis for decision to go online...............................................................................................6
Advise about whether to set up online shop or sell on Amazon.................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management accounting refers to the procedure of identifying, measuring, analysing and
communicating financial data and information to senior management to attain organizational
goals. This includes the presentation of financial information for internal purposes by senior
management for use in making important business decisions. This includes cash flow analysis,
product costing, budgeting, trend analysis, and forecasting (Alves and Garza-Reyes, 2021). This
report contains the analysis about Amana Ltd, a tourist business about its monthly control report
showing variances. It also includes Amana's performance comparing its actual and original
budget. The report recommended the ways to improve the performance. Furthermore, it is
concluded by the decisions regarding the business to go online or to go from own website or sell
through amazon.
MAIN BODY
PART A
Monthly Control report of Amana Ltd.
A budget is a tool for tracking when and how you make and spend money. This allows you to
monitor and better understand if your business has enough revenue to pay for it. Budgets help
you make more informed financial decisions. It helps in many ways, including setting short- and
long-term goals for business growth, tracking income, expenses and cash flow, and keeping
financial records. Budget variance is an accounting term that describes situations where actual
costs are higher or lower than standard costs. Unfavourable or negative variance indicates budget
shortfalls that may arise due to lost revenue or higher than expected costs. Deviations can arise
from internal or external causes and include human error, low expectations, and changing
business or economic conditions (Atkinson, 2021).