Imda Tech Ltd - An Enterprise Management Project

   

Added on  2020-01-28

18 Pages4492 Words410 Views
MANAGEMENTACCOUNTING
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INTRODUCTIONRole of manager has increases with the increasing external market difficulties which willbe managed by applying strong leadership skills. Imda Tech Ltd has been selected for the givenproject report which is all about use of different financial resources in an enterprise inachievement of desired aims and targets of an enterprise. This project is stresses on differentsystems of accounting and difference between financial and management accounting. Thesignificance of the management accounting has explained hat helps in taking important decisionsin the business in resolving all doubts of the business.TASK 1a)Define management accounting and distinguish between management accounting and financialaccounting.Management accountingThe focus of management accountant lies in assessing the internal business structure f anentity. Cost is the primary concern of the management which needs to be evaluated in order todevise cost reduction strategies in order to reduce the overall cost of an enterprise. Data collectedby an individual will be pass on to the top management which helps them to take correctiveaction in the business (Wilson and et.al., 2016). Reduction of costs is the clear sign of increasingprofitability of the business which needs to be evaluated over a particular time period. There is set of rules to be followed by an individual while accounting all the transactionsthat are related o the performance of the management. Top management assigned qualifiedmanagement accountant who analyses the current resources of an enterprise in order toeliminates wastage from the business in order to help an entity in improving their quality. Theefficiency and effectiveness are two important criteria to be used as major function in thebusiness (Tosun and Bağdadioğlu, 2016). The quality of services are improved in order to deliverimportant information from one end to another in order to handle complex problems in thebusiness enterprise.
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The information supplied by the accountants in the management includes two kinds ofinformation such as qualitative or non-financial information supplied from one end to another inorder to improve the current efficiency of the business enterprise. Difference between management and financial accountingScope- In terms of scope both streams are opposite to each other as in financial accounting thefocus lies on the external business environment and on the other hand management accountingstresses on the internal business structure of Imda Tech Ltd.Rules and regulations- Legislation and business code of conduct are prepared in order toimprove the overall performance of an entity. These regulations guide the performance of anentity which directs an entity towards the achievement of all the goals and the objectives.Management accountants are not restricted to adopt rules and the regulations but on the contrary,financial accounts prepared by internal assesses but its evaluation is done by the external party inform of audit of the financial accounts (Holston, Issarny and Parra, 2016). The financialaccountants are required to follow generally accepted principles that enhances the quality of allthe financial transactions included in the financial statements of an enterprise.Objectives- The role of management accounting is to reduce the cost of the management but onthe other hand purpose of financial accounting is to give opinion on the financial statements.True and fair view opinion will be given an external auditor after analysis the financialstatements prepared by an entity.Information- There are two kinds of basic information such as qualitative and quantitativeinformation which will be included in the business. In the management accounting bothqualitative and non-financial information are supplied to the management but on the other hand,financial accountants are highly concerned with the quantitative information. Monetaryinformation includes facts and figures that reflects the performance of the business in terms ofprofit or loss incurred in the business.Importance of management accounting information in making decisionsManagement accounting is regarded as one f the important tool's ad techniques used y anentity owner in order to reduce its obligation. The cost is the basic obligations imposed o anentity which needs to be reduces with the passage of time as an entity owner need to devise coststrategies in improving their current set of skills and the liabilities. There are ways significance
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