Management Accounting and Budget Management : Assignment

Added on - 21 Jul 2020

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MANAGEMENTACCOUNTING
Table of ContentsIntroduction......................................................................................................................................1TASK-1............................................................................................................................................1Financial Accounting.............................................................................................................1Management Accounting........................................................................................................2Key Differences Between Financial Accounting and Management Accounting...................2Importance of Decision Making.............................................................................................3TASK-2..........................................................................................................................................6Computation of income statement using Absorption costing method....................................9Computation of income statement using marginal costing method.....................................10TASK-3..........................................................................................................................................11Process of preparing budget.................................................................................................13Pricing strategies..................................................................................................................13TASK-4..........................................................................................................................................14Balance Scorecard................................................................................................................14A systematic and strategic approach....................................................................................16Conclusion.....................................................................................................................................17References......................................................................................................................................18
IntroductionAccounting fee management information solutions to discuss the company incurred in thepresent and future. It also deals with inventory of various techniques. Cost estimates formiscellaneous services are calculated by comparing the actual impact of the budget process. Alsobook a different budget that helps to compare the results of real work. The provision alsoincludes costs, budget and a different language due to the mixture. It also deals with varioussolutions that help business strategy to improve this process.Budget management, task unit cost accounting help to give detailed information on thevarious costs of business management. Through it, students can identify the tool or technologyavailable to analyse business costs and give economic costs organisation, provides also helps usto understand the problem and made a series of decisions on costs and budgets.Each organization concerned is the cost companies to reach their goals and do businesssuccessfully. To this end, organizations must understand and classify the various costs ofoverhead and any pay the interest to receive reports and budgets of the various businessprocesses to pay.TASK-1Accounting, refers to data storage and classification where simple financial transactionsand other events and interpretation of results. The machine is used to control financialtransactions, accounting and bookkeeping and Accounting confirms give a true and fair pictureof the financial position of the company in different directions.Financial AccountingAccounting Financial accounting in financial reporting from third parties such ascreditors, shareholders, investors, suppliers, creditors, customers etc. This is the purest form ofaccounting and reporting where documents are in the system by providing consumers withinformation and related materials.Is based on the recognition of the assumptions and principles and arrangements withinthe conservative and stable, and the consolidation of financial statements and other costsof the acquisition, which includes the statement of the balance sheet of income and cashflows from each other in line with the law on real estate, materials, fit, exercise1
Typically, the report is based on certain account calculations, so that consumers cancompare the financial situation, profitability and performance of the company during thisperiod. Not only external factors but internal managers should expect planning anddecision-making.Management AccountingManagement accounting, accounting management machines also assists management toestablish, manage, forecast, plan and control the day-to-day operations of the organizationdepartment. Quantitative and qualitative data collected and analysed for their accountsAccounting is an area providing financial information or costs. Instead, he pulled out ofpromotional materials, as well as accounting and accounting help budget, specific goals, decision- making, and can depend on demand management, ie weekly, monthly, quarterly, etc. On theother hand, the formation of the organization said.Key Differences Between Financial Accounting and Management AccountingRepresents the accounting industry, which tracks each unit financial information.Accounting is a branch of accounting records and reports financial information andfinancial data packages.Accounting users to control the internal company and external factors, when used ininternal audit and internal control.Accounting and financial management will not reach the public is the use of theorganization, and therefore very difficult.Only financial information in the financial statements. However, both accounting inmanagement, financial statements and financial statements, such as the number ofemployees, the amount of raw materials used and disposed of, etc.The accounting performance of the group, but not the expense of a specific form ofcontrol.Accounting focuses on providing information about business model results from users,while financial focus on providing information to help them evaluate performance andplan ahead.2
Accounting is performed mainly for a specified period, usually a year. Instead madestatements according to management requirements, say quarterly and semi-annual, andmore.Accounting is mandatory for all companies to audit. On the other hand, it is optionalbecause it does not.The necessary accounting data is published and the audit report is reviewed. On the otherhand, management accounting, which requires no advertising and publishing, because itis for internal use.Importance of Decision MakingControlling accounting and bookkeeping is very important, in fact, they helporganizations in different ways. Accounting also helps maintain the validity of a number oftransactions and compare the two periods of the group or two units, while the president tofacilitate the analysis of the efficiency of the statement production strategy provides an effectivepolitical future.Explain the different types of Management AccountingHere we look at production units Limited pirates are as follows based on the breakdownof costs related - information. Pirate Limited (Far, 2011).Before going to where the issues, let us understand what the real cost. Cost words toshow how much money the company uses in creating goods and services included in the costs ofraw materials, equipment, goods, services, employment, goods, etc.Cost of all three major components:Components - direct / indirectWork - direct / indirectCosts - direct / indirectThese elements can be divided during production and cost.i. Cost accounting systemsProduct cost - this is the cost of manufacturing the product.3
Period costs - costs, production costs are recognized in profit or writing at different times.The price includes the cost of goods "direct costs". Direct costs associated with directproduct manufacturing (Tyran, 1982). These costs are naturally variable costs. Directcosts are as follows:Direct materials - these are the property caused by the production, such as raw materials.For example, the accumulated cost for plywood, textile fabric, wooden boards, IMDATech Ltd, etc.Direct Labour - this is the work of the production companies or set to a specificmanufacturing cost centre. For example, education, artist, saws, installation, etc.Direct Expenses - two IAS (International Accounting Standards) costs directly part of thecost structure. These are the costs of improvements, quality or design. For example, tobuy special equipment to update the style tables and chairs (Far, 2011).Inventory management systemsIndirect materials -not included in the cost of direct and indirect materials importedmaterials.Wage labour costs - labour costs that are not linked directly to the production costs ofmanagement. For example, supervisors, brooms and other techniques.Indirect costs- costs indirect costs mainly for the factory. For example, mainly consist ofdepreciation on machinery, electricity, rent, telephone bills, council tax, insurance andother expenses.The cost of the cost of the total cost of administrative costs and the costs of sales anddistribution, as well as economic costs.Administrative costs- is the total ownership of the administrative expenses of theOrganization. Management fees, office rent, council tax, water charges, telephonebills, etc. (Far, 2011).Selling and distribution costs - the costs of creating a viable for the sale anddistribution of a number of death sentences product. These costs include advertisingcosts, market research, salary surveys, bonus and others4
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