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The Functions of Management Accounting

   

Added on  2020-02-05

17 Pages4371 Words346 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Prepare a well-researched written report on the functions of Management Accounting.......3(A) Difference between financial accounting and management accounting...............................4(B) Importance of management accounting................................................................................52. Types of Management Accounting Systems .........................................................................6TASK 2............................................................................................................................................7Absorption costing......................................................................................................................8TASK 3..........................................................................................................................................12Managers have requested for more information and training on budget preparation..............12TASK 4 .........................................................................................................................................14(1) How it can be used to identify and respond to financial problems.....................................15(2) improve financial governance and development of effective strategies....................................................................................................................................................15CONCLUSION .....................................................................................................................16REFERENCES..............................................................................................................................17

INTRODUCTIONManagement accounting is the system to manage and control on activities and works inthe financial term that help to identify financial position and status of the company. Managementaccounting maintain the all records and data relating to the financial transaction of the companythat help to identify actual capabilities and skill to invest in the market and also determine thepast invest in the market(Zimmerman and Yahya-Zadeh2011). Management accounting help tothe manage all works and give proper suggestion to take effective decision regarding company inthe financial position of the company. Management accounting is the financial and non financialsystem in which maintain all fanciable or non financial transaction of the company in which thathelp to take effective and systematic decision regarding company. Imda Tech is the charger andgadget providing company in the UK market in this company all employees not having anyfinancial informations and data related to the company so they will not effectively able to takebetter decision that's why higher authority of the company wants to provide a financial documentto employees so they can easy to determine company's financial positions and status and takebetter decision.TASK 1P1 Prepare a well-researched written report on the functions of Management Accounting.Management accounting is the system to mange all financial and non financialtransactions in the systematic manner. That help to take better decision by the company'semployees and easy to evaluate and determine actual performance and position of the companyin the financial term. Management accounting having many functions those are under the below: Planning: Planning is the systematic process in which decide how to achieve the objective andtargets of the company. Planning of the company play an vital role to develop and increasingproduction of the company. In which mention company's products, services, capability, financialcapabilities, equity and debt fund of the company. After evaluation to all these things thenprepare a effective plan to achieve decided targets an goals of the company( Macintosh,andQuattrone, 2010).

Organising: Organising is the another function in which implement the plan in the process tomanage an control company's activities to take effective decision and maintain the all financialand non financial transaction of the company. Effective planning help to take better decision andhelp to achieve objective sand goals of the company.Coordinating: Coordinating refers to working in unity in the company with all employees andbuild better relationship with each other. Coordinating is play important role to manage andcontrol on the employees and their works. This function through all employees are easy tounderstand each others and if they having any issues and problems so easy to find out theirsolutions.Controlling: In the company having many activities and works that should controlled by thecompany's managers. Controlling function through use minimum resources and produce highnumber of productions. Controlling element through manage and control over all works and alsofinancial transaction of the company.Communication: Communication is the important elements in any kind of company by this easyto transfer data and information one persons to another. That help to understand each other in theeffective manner and help to take better decision regarding company and other issues andproblems.(A) Difference between financial accounting and management accounting.Financial AccountingManagement AccountingIn this accounting only maintain the financialtransaction of the company not other alltransactions( Simons, 2013).Management accounting refers to manage allfinancial and non financial transactions of thecompany those are in the systematic mannersmange and maintain.This type of accounting related to the internaland external environment of the company inwhich maintain the transaction and data thoseare help for company's development.Management accounting in only maintain andrecord the transaction relating to the internalbusiness not relating to the external business ormarket.

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