Management Accounting: Analysis of AMANA's Performance and Suggestions for Improvement

Management
Accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART A...........................................................................................................................................3
Monthly Control Report of AMANA Ltd...................................................................................3
Report on AMANA's performance during the year 2020...........................................................4
Suggestions for improving the performance...............................................................................5
PART B ...........................................................................................................................................6
Analysis of decision to pursue business online...........................................................................6
Suggestions to set up AMANA's own website or proceed with Amazon...................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Management Accounting can be defined as the procedure that involves measuring,
identification, observation, communicating and analysation of accounting records and other
financial information for the better execution to pursuit of an organisation's objectives and goals.
In includes the representation of financial data for the internal management purposes that is taken
into usage by top level management in strategic decision making process. It consists of product
costing, cash flow analysis, budget forecasting and trend analysis (Anessi-Pessina and Sicilia,
2020). The main purpose of the report is to highlight important concepts of management
accounting. This report includes analysis of tourists business of AMANA Ltd about report on
monthly control which reflect variances. Further, it also presents report on performance of
AMANA with its actual figures and original budget. The report ends with recommending the
better ways that help AMANA's CEO in improving the business performance and after that it
explains the plans to go online and decision on whether to start online business with their own
website or sell through Amazon.
PART A
Monthly Control Report of AMANA Ltd.
Budget is the best tool for tracking the financial condition and planning expenses
according to that, it also helps in allocation of earning to meet requirements. It can be defined as
calculation plan for specific time period which anticipates revenue, quantity of resources,
environmental impacts and expenses. It helps in intending all expenses from the available
resources. It allows organisations to oversees and help management in proper understanding the
upcoming needs of funds, whether business has enough financial resources to meet their
expenses or need to arrange them with outsiders and insider sources. Usage of budget help
companies in making more accurate decisions as it provides all financial resources in proper line
(Balakrishnan, Matsumura and Ramamoorti, 2019). It is helpful in numerous ways for
management as well as stakeholders as it sets long and short term objectives for sustainable
growth of business, helps in tracking money like expenses, revenue and cash flow from other
sources and maintains a proper or accurate accounting record. A budget variances is an
accounting concept which describes the condition in which actual costs are either high or low
than the standard cost. A negative and unfavourable variance is act an indicator of shortfall in