Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author’s Note:

1MANAGEMENT ACCOUNTING
Table of Contents
Answer to question F:................................................................................................................2
Sub part (i): Summarised Absorption costing Income statement for 2017:...........................2
Sub part (ii): Summarised Marginal costing Income statement for 2017:.............................3
Subpar (iii): Budgeted Income statement for 2018:...............................................................4
Answer to question G:................................................................................................................4
References and bibliography:.....................................................................................................6

2MANAGEMENT ACCOUNTING
Answer to question F:
Sub part (i): Summarised Absorption costing Income statement for 2017:
UNILEVER
Summarised Absorption Costing Income Statement
For the year 2017
Amount
In million
Amount
In million
Sales Revenue € 53,715
Less: Cost of Goods Sold € 27,306
Gross Profit € 26,409
Less: Selling and Administrative Expenses:
Distribution Costs € 3,241
Selling and Administrative expenses € 14,311
Total of selling and administrative expenses € 17,552
Operating Profit € 8,857
Notes:
From the consolidated income statement, total turnover and operating profit can be
taken. The notes number 3 to the financial statement shows the breakup of costs and the
details of operating expenses. Information has been taken from that notes to the financial
statement to prepare the summarised income statement under absorption costing system of
accounting. In this concept full manufacturing costs are deducted from the sales revenue to
get the gross profit and then other operating expenses are deducted from the gross profit to
get the net operating profit. For preparing the absorption costing income statement, it is
assumed that the cost of sales as given in the notes 3 to the financial statement is the total cost
of goods sold, which includes both the fixed and variable manufacturing expenses.