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Management Accounting in Unicorn

   

Added on  2020-10-22

8 Pages1794 Words83 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P 4- budgetary control planning tool and its advantages and disadvantages ........................1M 3 Application for preparing forecasting budget ................................................................2P5-Unicorn adopt management accounting system respond financial problem....................4M 4 Management accounting system to respond financial problem......................................4CONCLUSION................................................................................................................................5REFERENCES ...............................................................................................................................6

INTRODUCTIONManagement accounting is a significant tool of accounting that provide importantinformation to manager which is used in planning, decision making and controlling of activitiesin such way so they can achieve goals and objectives of the company. This accounting alwaysused for internal purpose and not regulated by any rules and regulatio. It helps in maximising theprofit.(Dierynck and Labro, 2018)Present report based on Unicorn company which is a privately held company that providefinancial services to public. This report includes budgetary control planning tool and itsadvantages and disadvantages and also mention about planning tool application used inforecasting budget. Further, explain about company adopt management accounting report forrespond financial problem of the company.TASK 1P 4- budgetary control planning tool and its advantages and disadvantages Budget - Budget is a quantified financial planning tool which is used to forecasting revenue andexpenditure on a specific period. Unicorn enable to measure actual operation by comparingbudget.Budgetary control - budgetary control is process which is used for comparing actual performanceand standard performance if any deviation found then manager can take action for solve problemand improve performance of the company. it is significant for enhance profitability byimproving performance (Marín Reyes, 2019).Planning tool of budgetary control and its advantages and disadvantages Zero base budget - This budget prepare from the zero level of the new financial year . allexpenditure and revenue identify from the start point according to current situation of thecompany. Unicorn do not require any previous year data while preparing zero base budget. Thisbudget also known as DE NOVA BUDGETING. Unicorn can analyse needs and cost requireinto particular function department through Zero based budget.ZBB used in prepare strategiesfor enhance operation efficiency that helps in minimised the cost and increase the profitability. itusually used in non profit organisation and service organisation.AdvantagesUnicorn company can allocate resources in effective manner through Zero Based budgetthat helps in reducing cost and increasing the profits of the company.1

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