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Importance of Management Accounting in Inda Tech - Report

   

Added on  2020-01-28

15 Pages4204 Words68 Views
MANAGEMENTACCOUNTING
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Report on the function of Management accounting...............................................................1P2 Various types of management accounting system-................................................................3TASK 2............................................................................................................................................4P3 Calculation on the basis of the Absorption costing and marginal cost..................................4TASK 3............................................................................................................................................7P4 Report on the planning tools of different budget...................................................................7TASK 4............................................................................................................................................8P5 Balance score card and its importance...................................................................................8CONCLUSION..............................................................................................................................10REFRENCES.................................................................................................................................11.......................................................................................................................................................12
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INTRODUCTIONManagement accounting is a process through which Inda tech. Takes is various decisionsand also keep control in the organisation by checking and evaluating the performance of thedifferent individuals. It provide the relevant information to different users of the accountingreports. Though it is not compulsory for the organisations to maintain management accountingsystem it is followed in order to keep coordination in the organisation(Baldvinsdottir Mitchelland Nørreklit,2010). These reports give the qualitative as well as quantitative data to thedifferent users so that they can take their decisions accordingly. Through this report theimportance of management accounting in Inda tech is highlighted as how this process helps themanagement to keep control over the cost and the employees. Different methods of managementaccounting are adopted by the company like the absorption costing and the marginal costing.Both these are an effective tool of management accounting system.TASK 1P1 Report on the function of Management accountingManagement accounting is the process through which different reports are prepared forthe concern department which help the managers to take more effective decisions. Thesedecisions can be monitory or non monitory. There are various accounting systems which arefollowed under the management accounting like audit and taxation,break even analysis,financialaccounting etc. therefore management accounting has wider scope than that of financialaccounting. With the help of the management accounting system the position of the organisationat a particular point of time can be ascertained(Bennett Schaltegger and Zvezdov,2013). Thecurrent assets,cash in hand total creditors and debtors can be calculated at a particular point oftime with the help of the management accounting system. These reports have both the internaland the external users. The internal users are the different managers, heads of different department and externalusers like investor. They get the idea of the position of the organisation at a particular timethrough these reports. Also these reports helps in keeping control over the management systemby keeping check on the performance of the different departments. Financial accounting on theother hand gives only the financial details of the company. Under the financial accountingsystem financial statements like balance sheet profit and loss account etc. are prepared. These1
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