Report on Management Accounting - Imda Tech

Management accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and its related functions.................................................................1
P2 Management accounting systems of many kinds...................................................................2
M1...............................................................................................................................................3
D1................................................................................................................................................3
TASK 2............................................................................................................................................3
P3 Calculation of cost and then preparation of income statements............................................3
M2...............................................................................................................................................6
D2................................................................................................................................................6
TASK 3............................................................................................................................................7
P4 Different types of budgets and their advantages and disadvantages......................................7
M3...............................................................................................................................................9
D3................................................................................................................................................9
TASK 4............................................................................................................................................9
P5 Balance scorecard approach...................................................................................................9
M4.............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the business there are various aspects which are covered and it will be needed that all
of them shall be taken into consideration (Bromwich and Bhimani, 2005). For this they will have
to be accounted in the proper manner and there are various tools that will be used which are
covered under management accounting. Information will be required and that will be collected
with the help of management accounting systems and by that the targets which are set will be
achieved. The below given report is provided in respect of Imda tech and in this different matters
in relation to it will be discussed. Also the manner in which the financial problems will be solved
will also be mentioned in the given report.
TASK 1
P1 Management accounting and its related functions
In every business there are various objectives which are required to be achieved and for
that different functions will be carried out. Also the main focus should not only be toward
maximisation of profits but also in the increase in the value of the business (Chapman and et.al.
2006). By this the organisation will be benefited and in this process there will be various policies
which will be required to be complied with so that the most efficient working can be carried out.
In the process there will be requirement of making relevant decisions and for that
information will be required which will have to be collected. By using the data the activities in
the business will be performed in the best manner. In the business not only management but also
the financial accounting will be used and there is lot of difference which is present among and
that will be understood with the help of the table provided below:
Basis Management accounting Financial accounting
Format In this there is no specific
method that has been prescribed
that will have to be followed.
In this there is required format
which is specified by the law
and will have to be followed.
Information In this both the financial and
non financial data will be
incorporated.
In this only the data in relation to
finance will be included.
Period of time The information will be In this information will be
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collected for any period of time. collected for a single financial
year.
Statutory requirement There is no requirement which
is specified by the authorities in
respect of it.
There are various legal
requirements which are to be
met in this.
Management accounting importance
with the help of management accounting there are various benefits which will be
acquired by the business and they are specified here under:
 In the business the main objective is to increase the profits and that will be achieved with
the help of this.
 For the overall advantage of the business it will be required that various policies shall be
made which will be followed by all.
 By this the saving in cost will be attained and this is because all the irrelevant activities
will be avoided.
P2 Management accounting systems of many kinds.
In the organisation there are various information which is required and for that different
accounting systems are there which are described below:
 Cost accounting systems: In the process of the production there are various cost which
includes material, labour and overhead that will be incurred by Imda tech and it is
required that they shall be accounted in the most appropriate manner (Ezzamel and et.al.
2003). By this all the expenditure that id to be made will be identified and then proper
allocation of the resources will be made to the different departments so that work can be
managed in the most effective and efficient manner. Also there will be some standards
which will have to be complied with by the company.
 Inventory management systems: There is different types of inventory which will be
used by the Imda tech and it will be needed that proper control shall be established in this
respect so that they can be managed and by that the production will be conducted without
any problems being faced. In this the level of inventory that shall be maintained at all the
time will be identified and then orders will be place according to it (DRURY, 2013). By
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