logo

Management Accounting Assignment (Solved) - Doc

10 Pages3301 Words79 Views
   

Added on  2020-10-22

Management Accounting Assignment (Solved) - Doc

   Added on 2020-10-22

ShareRelated Documents
MANAGEMENTACCOUNTING
Management Accounting Assignment (Solved) - Doc_1
Table of ContentsINTRODUCTION...........................................................................................................................1P4 Advantages and disadvantages of diverse kind of planning tools used in budgetary control2P5 Analyse how organisations are adapting management accounting system to respondfinancial problems..................................................................................................................6M4 Evaluation of effectiveness of management accounting in terms of leading organisation tosustainable success.................................................................................................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
Management Accounting Assignment (Solved) - Doc_2
INTRODUCTIONManagement of information related to financial and non-financial transactions, eventsand assumptions are considered as management accounting. It is a part of strategic planning anddecision making process (Abdelmoneim Mohamed and Jones, 2014). This report focuses uponmarginal costing, absorption costing, closing stock and profit figures. It mainly focuses uponessentialness of various type of planning tools used in budgetary control process. Use ofmanagement accounting in resolving the monetary conflicts and emphasising the sustainabilityof business is evaluated in this report.Marginal costEvaluation of change in total cost by producing extra unit is considered as marginal cost.A cost that helps to determine the cost of incremental production change due to increase byproducing each extra unit. Marginal costing considered very effective while calculating breakeven analysis and variability of cost in various sections. Marginal costing helps in dividing thechanges in cost or incremental cost among the increased units. Material cost, labour cost anddirect expenses cost are the main elements in marginal costing.Absorption costIt is one of the essential method of compiling the cost that remain associated with theprocess of production units. This costing method mainly help in valuation of inventories with inorganisational context (Absorption costing, 2018). The additional cost is analysed subject toanalyse the marginal cost proportionate to production. Ingestion costing implies that themajority of the assembling costs are consumed by the units delivered. As it were, the expense ofa completed unit in stock will incorporate direct materials, coordinate work, and both variableand fixed assembling overhead. Fixed overheads cost is considered as absorbed rate whilecalculating cost.Why are the closing stock and profit figures different?There are two elective procedures for the valuation of stock as marginal costing andabsorption costing. Simply factor costs are charged to movement, however the fixed cost isrestricted from it and are charged to profit and mishap speak to the period. In marginal costing,minor cost is controlled by bifurcating fixed cost and variable cost. It it reckoned that profitform marginal and absorption costing are counted different. There are some assumptions made interms of calculating profitability form absorption and marginal costing. Main reason of getting1
Management Accounting Assignment (Solved) - Doc_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Cost Management and Budgeting in Business Finance
|17
|2668
|203

Management Accounting
|11
|638
|66

Management Accounting: Techniques and Applications
|10
|2473
|53

Management Accounting: Marginal and Absorption Costing Techniques
|7
|838
|71

Management Accounting: Roles, Principles, and Financial Problem Solving
|10
|2323
|45

Management Accounting: Cost Analysis, Budgetary Control, and Financial Problem Solving
|16
|3091
|149