IMDA Tech Ltd. 3 TASK 13 P1 Function of the Management Accounting InTRODUCTION OF THE MANAGEMENT ACCOUNTING INTRODUCTION

MANAGEMENT
ACCOUNTING
Table of Contents

INTRODUCTION............................................................................................................................3
TASK 1............................................................................................................................................3
P1 function of the Management accounting................................................................................3
P2 Various types of Accounting system......................................................................................4
M1 Benefit to the IMDA Tech Ltd.............................................................................................5
D1 Critical evaluation of the system...........................................................................................5
TASK 2............................................................................................................................................5
P3 Calculation through Absorption and the Marginal costing....................................................5
M2 Tools and techniques for the financial report ......................................................................8
D2 Data interpretation of the company activities........................................................................8
TASK 3............................................................................................................................................8
P4 Tools for planning the budget ...............................................................................................8
M3 Application of the forecasted budget....................................................................................9
D3 Tools to overcome these issue...............................................................................................9
TASK4.............................................................................................................................................9
P5 Balance score card and they are respond to financial problem..............................................9
M4 Analysis and the interpretation of the accounting problems...............................................10
CONCLUSION..............................................................................................................................10
REFERENCES...............................................................................................................................11

INTRODUCTION
The topic of this project report includes all the belongings related to the management
accounting of the IMDA Tech Limited, which is largest producer of the mobile chargers and
other gadgets for the various marketing outlets in the British capital. The Report contain all the
point about the management accounting with importance to the company and the various
decision related to the division. The absorption and the marginal costing are also explained under
this report (Kaplan and Atkinson., 2015). The project contains the accounting procedure and the
inventory management part of the IMDA Tech . The company is also come up with the Balance
card approaches used by them. It also contains the various budgets and their use in the
performance of the company growth and its expansion in the coming future. On the basis of the
calculation various suggestion and the findings have been given to the company which help them
in achieving their goals.
TASK 1
P1 function of the Management accounting
The Management accounting refers to the combination of the various steps of financial
services and the Management which they are using their skills and knowledge in to generate
value to the company Objectives (Ward., 2012). The accounts of the company cant reflect the
image of the reality . It consist of mostly mathematical calculation and the maintaining of the
double entry system in the books of account of the company IMDA Tech Pvt Ltd. When the
market grows up in the economic system because the earnings of the firms are optimistic.
S.NO Management Accounting Financial Accounting
1
2
3
The account which provide various
information by analysing , collection
about the data of the company.
It is related to the Monetary and non
financial transaction.
It help the team management in the
planning and the decision making by the
higher authority.
The company has not to follow any kind
It is associated to the preparation of the final
accounts of the company according to the
performance.
It is associated to only monetary transactions.
It is basically related to the data collection
about the financial flow by the organisation.
It has to be a specified format which the

4
5
of format to analysis the performance .
The time period is decided by the
management as it has to be half yearly or
yearly.
company has to follow to analyse the budget.
The financial data is calculated in the financial
year.
Importance
 Easy to proceeds judgement – On the basis of management accounting ,company can
make essential decision and decides that which policy and procedure is best for the
company (Burritt, Schaltegger and Zvezdov., 2011).
 Effective accounting control – With the help of management accounting , company can
do planning with success and it also helps in organizing the business activities that
contributes in the achievement of desired goals.
 Cut down expenses – Accounting system helps in reducing the expenses of company
related to operational expenses and increase the profitability. With the help of
it ,company can manage or evaluates cost of economic resources and other business
operation.
 Future forecasting : The basic reason of the accounting system is to make the budget in
such a way that it will benefit the company in the future generation. The Planning has to
be perfect during the preparation of statements.
P2 Various types of Accounting system
For the Decision making on the basis of the accounting system used by the company
IMDA Tech. the internal system is supported on the message provided by the manager who
design the plan for the achievement of the goals and the objectives of the company (Parker.,
2012). These accounting systems help to calculate the outflow and the inflow of the cash
transaction in the one financial year. The various accounting systems are :
 Cost Accounting system :It is used by the company and the organisation to know the
total cost incurred of their Products that are Profitable to the company. It is design to
calculated the basic cost incurred by the company on their expenses . It basic concision of
actual cost which is based on the actual prices of the items. The normal cost under this the
actual cost for the labour and the material are estimated and the standard costing is the
substitute to the expected cost on the actual cost.
 Inventory Management system :It refers to the management of the stocks of the
company by using the appropriate techniques like there are three categories of the stock
which is divided on the basis of their durability. These categories are used on the basis of
the quality or the durability of the products. A is based on the high quality of the stock , B
is medium categories and the C is for the low based inventory products.
 Job Costing System : It refers to the type of order assigned to the cost of manufacturing
the each unit of the items by the company. It is mostly used where there are difference in