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Management Accounting - IMDA

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Added on  2020-01-07

Management Accounting - IMDA

   Added on 2020-01-07

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Management Accounting
Management Accounting - IMDA_1
Table of ContentsINTRODUCTION........................................................................................................................................3TASK 1.........................................................................................................................................................3a) Definition of management accounting and comparison between management accounting andfinancial accounting.................................................................................................................................3b) Types of management accounting system ..........................................................................................7TASK 2.........................................................................................................................................................71. Using absorption costing method .......................................................................................................72. Using marginal costing method...........................................................................................................8TASK 3.........................................................................................................................................................9a) Type of Budget and there advantage/disadvantage.............................................................................9b) Process of preparing a budget...........................................................................................................10c) Pricing strategies of the business ......................................................................................................10TASK 4.......................................................................................................................................................10a) Balance score card approach.............................................................................................................101. Use of balance score card for intensification and responding to the financial problems..................112. Use of balance scorecard in order to improve the financial governance...........................................11CONCLUSION..........................................................................................................................................11REFERENCES...........................................................................................................................................12
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INTRODUCTIONManagement accounting is a managerial tool for making the success of organisation. It includeall such report which are prepared by the manager so that they can estimate the actual resources whichare available in the organisation (Wajeetongratana, 2016). Management accounting is a process whichinvolves policy making, setting the rules and regulations and working as per decided procedure so thatbusiness can utilizes there resources effectively so that they can accomplish there future goals. It alsohelp help the manager to allocate the funds in appropriate way so that such fund can be used in future asper need. By following management accounting approach, it make smoothing in operational; activity, inthis way such accounting techniques increases the efficiency of any organisation. Managementaccounting and there different approaches such as costing methods help the manager to estimate theappropriate cost of unit so that manager can determine the actual cost of the products and workeffectively.In this research report, IMDA Tech Limited is taken as new established company, which canproduce different mobile chargers for specific mobile set and phones. It also describes the varioustechniques which are followed by IMDA Tech Limited (UK). In this report it describes the concept ofmanagement accounting make comparison with financial accounting and it also explain the role ofmanagement accounting as business decision making tools which department manager can use to takeright decision in different department. It also describes the various costing system so that manager canestimate the cost of unit by making effective calculation. This report also describes the budget andprocess for setting a right budget by using different pricing strategies. This report explain the balancescorecard which are blueprint of the company's success and there use to make effective control fordeveloping the effective strategies in an organisation.TASK 1a) Definition of management accounting and comparison between management accounting and financialaccountingTo: Line Manager, Imda Tech UK LimitedFrom: Management Accounting OfficerDate: 26 May 2017Subject: Importance of management accounting and difference from financial accounting.Management accounting is a managerial process which include various management functionsuch planning, organising, staffing., controlling, directing, motivating etc. so that firm canaccomplishes there goals by using the management function. All such kind of strategies are execute by
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the manager so that organisation can increases there efficiency and set there standard. Managementaccounting also use the information, facts, data which are reliable and accurate in nature and consideredas improving managerial tools (Vosselman, 2014). Making comparison between management accounting and financial accounting Basis of ComparisonManagement accountingFinancial accountingMeaning/ConceptManagement accounting is amanagerial function of makingeffective plan, organisation ofeach activity, directing the workby the employer and makingeffective control on each taskand motivate to the employees.Management accounting can bedone by using all theinformation, facts and arrangingthem in a appropriate reportformat so that each activities canbe estimate by the managers.Financial accounting is afinancial process which includesall the financial activity suchpreparing a company's financialstatements such profit and lossaccount, cash flow, statements ofaffairs etc. so that managers candetermine the company's actualposition at the end of theaccounting period.Requirement in organisation ornot?Management accounting is aprocess which include the reportof each and every informationsand facts so that it can estimateand increases the organisation'scapability. So that it is notnecessary to approachingmanagement accounting processbecause this accountingtechniques is followed by thecompany as per there need.Financial accounting is anessential tool for anyorganisation's growth. It includepreparing of financial statementssuch income statement, balancesheet etc. In this way everybusiness organisation shouldmaintain the financial accountingapproach so that they canestimate the company's actualposition.ObjectivesThe main objective of Imda techlimited is to make effectivecontrol in business operationalactivity. For example: If ImdaThe main objective of usingfinancial accounting is to knowthe actual position of thecompany that in which position
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