Management Accounting (Task 2)

Topic
Management accounting
(Task 2)

Table of content
Introduction
Preparation of income statement
Calculation (Under marginal costing)
Calculation (Under absorption costing)
Financial reporting document
Financial reports
Conclusion
References

Introduction
Management accounting include accounting
information that helps manager in decision
making (Maas, Schaltegger and Crutzen, 2016).
For better understanding of this presentation,
company has been chosen which is Bestway
Ltd.

Preparation of income statement
Cost: In business cost is involved in buying raw material,
using machinery and equipment to produce goods,
packaging, delivering goods to customer. Two methods to
calculate cost are as follows:
•Absorption costing
•Marginal costing