Management Accounting and Its Impact on Company Performance

LFBM203-Assessment
Part 2

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Management accounting and how it impacts the performance of the company..........................3
Critical Analysis of the factors affecting the company for achievement of the primary
objective.......................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The financial management and analysis procedure is identified as the method which has been
proposed to help any type of organization assess the financial position of the company in the
market, due to the fact that the overall management of the finance which has been raised through
different sourcing options, is the top most priority for the company. The administration of the
financial activities or the data will help the company review internal and external allocation of
the valuable resources and as a result impact the profitability along with the wealth of the
company. In the following report the analysis for XYZ PLC which is the holding company with
three different strategic business units and having three different scenarios related to the sub
units namely the X-Square Financial Ltd., York Manufacturing Ltd. and Zebra Investment Ltd.
Furthermore, the report will discuss how the role of management accounting plays a critical role
in improving the overall performance of the company and a critical examination of different
topics combined in each scenario.
TASK
Management accounting and how it impacts the performance of the company
The management accounting process is defined as the various techniques which are required for
presentation of financial information for the internal purposes and to propose key decisions for
the company (Yatsyk, 2020). Furthermore, the management accounting procedure is also
identified as the process which can benefit the organizations in identification, measurement,
accumulation and analysis which could be put to use for the future. Following are the advantages
of the management accounting process which maintains the position of XYZ PLC:
 Helps in the decision making process which could be used for the future.
 Planning and performance of the tasks.
 Controlling and organizing the operations along with the direction process.
 Understanding the financial data of the company.
 Identification of the business problems and other similar areas.
 Conducting the strategic management procedure for all departments.
Critical Analysis of the factors affecting the company for achievement of the primary objective
Scenario A