Management Accounting and its Comparison with Financial Accounting

Management
accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1. Defining management accounting and its comparison with different systems and financial
accounting....................................................................................................................................1
P2 Description of different methods of management accounting reports:..................................3
TASK 2............................................................................................................................................4
P3. Preparing income statement with the help of different aspects that possess a lot of value in
the current scenario......................................................................................................................4
TASK 3............................................................................................................................................7
P4: Evaluation of advantages as well as disadvantages of budgetary control planning tools:....7
TASK 4............................................................................................................................................8
P5 Comparison of management system adoption by businesses for responding financial
problems:.....................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management accounting means managing the most important aspect of a firm that is
accounting which is regarded as an integral part of every business (Bourmistrov, Grossi and
Haldma, 2019). It is a process in which an identification of different factors are done in order to
help the organisation to sustain in the market for a much longer period of time as compared to its
competitors that are prevailing in the similar market conditions. Capital Joinery Limited is a firm
that deals in windows, doors, and stairs is geographically located in the UK and is operational
since 2008 and is doing a pretty good job in the market too. In this report there is a brief
discussion of management accounting and other aspects that are closely relate with it which
possess a lot of important for the above mentioned firm. Apart from that the report also included
different tools of budgetary control, costing system, its advantages as well as disadvantages, etc.
Further in this report there is an evaluation of Capital Joinery Limited with its competitors in an
effective manner.
P1. Defining management accounting and its comparison with different systems and financial
accounting
Management accounting is referred to as a process of identification of different factors
that both directly or indirectly affects and impacts the working of the firm so that appropriate
rectification measures can be taken according to the needs, requirements, and demand of the
enterprise. These factors possess a lot of importance in the current market scenario as they
carriers the potential to substantially improve the condition so the firm in the long run if
identified in a correct manner. Capital Joinery Limited is a company that is established not a long
ago but with the help of many aspects that are directly related with the working of the business it
has captured a larger share in the market as compared to its rivals and that too within a short
period of time. There is another aspect that is financial accounting which is also carriers a lot of
importance and its comparison with management accounting has been done below with the
context of the above discussed firm-
Management accounting Financial accounting
 It is a type of accounting that is not
compulsory in nature and a firm adopts
it by its own choice. Capital Joinery
 It is an accounting method that is
compulsory in nature and has to be
maintained by specific firms. Capital