Management Accounting and Financial Planning AAF0436

Management Accounting
and Financial Planning
AAF0436

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Critically discuss the use of Standard Costing, the various types of standards and the limitations of
standard costing......................................................................................................................................3
Critically discuss Target Costing and how it differs from Standard Costing.............................................5
Critically discuss the role of contribution technique in decision making, and how it may help BETA,
giving suitable illustrations......................................................................................................................6
Critically analyze how transfer pricing approaches could be used to improve the company’s
profitability?............................................................................................................................................7
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................11

INTRODUCTION
Management accounting is the collection and display of economic and accounting
information to aid in analyzing strategy implementation, developing plans, making parallels,
planning, and projecting, among other things. Management accounting is a discipline of
accounting that provides data to authorized parties and helps companies make decisions
(Alsulmani, Alkindi and Ahmed, 2021). On the other side, financial plan is a complete plan that
covers an user's present financial status, lengthy goals and tactics for achieving them. Financial
planning is a process for calculating the amount of money necessary and selecting how to obtain
it. Simple terms, it assists them in keeping track of their income, spending, and assets in relation
to managing their money.
MAIN BODY
Critically discuss the use of Standard Costing, the various types of standards and the limitations
of standard costing
Standard costing is an excellent tool for managing expenses and assessing growth and
performance. It's a cost-cutting and expense strategy. It assists in a variety of management
activities such as policy formulation, pricing level determination, and so on. The idea of standard
costing is to define goals and targets for achieving them, and then evaluate real costs to such
goals (Butyugina and Gorbunova, 2021). Standard costing is a method of determining the
standard cost for each cost factor, such as material, labor and overhead. There are using standard
costing in Beta Company to analysis the efficiency of different products in company such as:
 Increased the quality and economy of management: It's hot enough for a manager to do
his job. They must also be productive. A manager's effectiveness should be both
productive and useful, meaning that the intended goal should be achieved with the least
amount of input materials. The adoption of standard pricing allows media to establish
those efficiency and productivity targets. It also focuses on assessing the degree to which
performance and efficiency have been achieved (Atienza and Tabuena, 2021).
 Goods Costing is Made Easier: Isn't it true that valuing merchandise at standard cost
makes equipment pricing easier? It allows the firm to stick to a set of procedures. All