Management accounting (IC)

MANAGEMENT ACCOUNTING

Introduction
Management accounting (MA) can be identified as a kinds of
accounting that is related to process of preparing internal reports
and needed data is gathered from different sources.
In the presentation, different types of costing methods are
describe which are beneficial in preparing income statement to
determine net profit.

Micro-economic techniques:
Cost- This can be defined as a sum of expenses which occurs in
order to complete different types of operations and activities.
There are various kinds of costs such as direct, indirect cost, labour
cost and many more.
Absorption costing- It is a form of costing technique in that total
amount of occurred cost is absorbed in fully manner to prepare
income statement.

Cost of inventory
Inventory cost- It is a type of cost which is aligned with
procurement, storage and effective management of stock.
Different valuation method:
Last in first out method- It is a technique in that material which
is stored in last in the warehouse is used first for production.
First in first out method- It is a technique in that material which
is stored first in the warehouse is used first for production.