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Management Accounting Introduction

   

Added on  2020-01-28

15 Pages4426 Words251 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3A)............................................................................................................................................31. Meaning of management accounting and the differences between the financial accountingand the management accounting............................................................................................32. Management accounting importance and the information as the decision making tool forthe managers...........................................................................................................................4B)............................................................................................................................................51. Cost accounting .................................................................................................................52. Inventory management systems.........................................................................................63. Job costing systems............................................................................................................64. Price optimising systems....................................................................................................6TASK 2............................................................................................................................................7Calculation of net profit through marginal costing techniques and the absorption costingtechniques...............................................................................................................................7TASK 3............................................................................................................................................9a) Types of budgets and its advantages and and disadvantages ............................................9b) Process of budget.............................................................................................................11c) Pricing strategies..............................................................................................................12TASK 4..........................................................................................................................................12A)..........................................................................................................................................121) Balance scorecard approach and response to financial problems...................................122) Balance scorecards improve financial governance and the development........................13CONCLUSION....................................................................................................................13REFERANCES..............................................................................................................................13

INTRODUCTIONThe IMDA Tech Limited is a retail company which produces and manufactures thechargers for the mobiles and also produces the other gadgets on the outlets of the retail. And inthis company there is a issue that the company provide the less financial information to itsmanagers (Macintosh and Quattrone, 2010). The management accounting helps in to manage theaccounts and the finance from this the accounts are clarified to some managers. In themanagement accounting contains the planning, directing and the decision making process andthese all are helps in formulating and preparing the financial report or the financial statement.And the management statement prepared accurately and correct.TASK 1A)1. Meaning of management accounting and the differences between the financial accounting andthe management accountingThe management accounting helps to provide the financial data and also provides theadvice related to the finance to the company. The management accounting is the process inwhich there is the preparation of the financial statements and helps in providing the correct andthe exact financial data (Baldvinsdottir, Mitchell and Nørreklit, 2010). It is a process ofpreparing the reports related to accounts and management that gives exact and timely statisticaland financial information which is necessary by mangers of company for making the day to daydecisions. The IMDA Tech Limited company the management accounting helps while makingthe strategies. At the time of making the strategies the company have to keep these things inmind:determine and manage the risk of the businessexamine the environment of the corporateto review, audit and measure the risk controlto take the advice related to the acquisitions, mergers and the divestment.Making and determine the financial strategy.The role of the management accountants of the company are important and unmentioned. Itincludes:

helps in preparation of the corporate social responsibilities report.Forecast the budgets related to the business activitiesplanning, setting up and execution of the projects.Provide advice on the pricing and the manufacturing of the products.To analysis of the competitive environment.The financial accounting concerned with the analyses, summary and the reporting of thetransactions of the finance in the company (Lukka and Modell, 2010). It is the process includesthe recording, measuring, summarizing and also recording the transactions. And thesetransactions are help in preparation of the financial reports includes the cash flow statement,profit & loss statement and the balance sheet of the company.Management accountingFinancial accountingIts main objective is that to provide theinformation related with the cost to theengagement.Its main objective is that it helps in providingthe financial condition or the financialstatement of the company.In this, there are the internal stakeholders.In this, there are the external stakeholders.It provides the reports on the specific problemor the task.It reports on the profitability and the efficiencyrelated to the business.It provides the report on the level wise.It provides the results of the reports of thewhole business.There are different types of management accounting systems: Traditional accounting systems- This management accounting systems track the pricesby using method of process costing. It helps in evaluate the allocation costs of an organisationwhich are related to direct raw materials, labour, production overhead. The process costing isused to allocate the costs which are based on numbers and also used to manufacture thehomogeneous products.Lean accounting- This management accounting system helps in eliminating the wastagefrom minimizing cost of production. Transfer pricing- In this method, organisations will cost products and services as theymove by various different functions or departments.

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