Management Accounting of UCK Group

Added on - 21 Jul 2020

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MANAGEMENTACCOUNTINGPROJECT - 2
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Diverse cost and tools use while implementing income statements:....................................11.2: Different range of management accounting techniques:......................................................31.3 Interpretation of both costing methods used to assess net profits:........................................3TASK 2............................................................................................................................................42.1: Merits and demerits of implementing planning tools implemented in the budgetarycontrol:........................................................................................................................................42.2 High and low method forecasting needed for July and August:...........................................52.3: Cash flow estimation............................................................................................................5TASK 3............................................................................................................................................63.1: Adoption of various accounting system in order to determine financial problems:............63.2: Making analysis to overcome financial issues:....................................................................7CONCLUSION................................................................................................................................7
INTRODUCTIONManagement accounting is the tool which is used by the company's managementaccountant who are keen to make the operations in an effective manner. However, this is the bestpart via which the company can make an effective efforts. Here, various tools are used by themanagement accountant for gaining the decisions in order to gain an effective strategy. Variousstrategies are used by the organisation for gaining sustainability(Zang, 2011). By taking help ofmanagement accounting tools, manager are not only required to record cost of transaction but allthose influence and direction which is mostly affect on the business activities.In this report, there is a short discussion about diverse costing methods that were helpfulin assessing total profits for UCK group of the organisation. In addition to this, this report istotally delivered vast information related to the financial constraints and their respectivemeasures in order to overcome them henceforth, effective results can be identified.TASK 11.1 Diverse cost and tools use while implementing income statements:In each producing business, they required to handle their work in higher and in anefficient manner for gaining desired outcomes.This is an efficient recording of each costs thatwhich is covered in a organisation so that they could be used in order to form valuable changesin the operational department of a company. Cost is a kind of value of amount through whichmanager can gather something. These are those costs that are directly or indirectly linked up withthe manufacturing process. Cost accounting is a kind of recording, classifying and assessing anddiverse alternative course of action for gaining control on a entire costs.This is an accounting tools which would render aims for gathering an organisation'sentire costs of production via evaluating input costs of each of the process for producing sectors.This is implemented to calculate and assess total costs that is linked with the manufacturingprojects. This is implemented to calculate and assess total costs which is going to the linked withthe manufacturing of goods. Henceforth, higher reliability outcomes will be produced for morequick time(Setthasakko, 2010). There are diverse kinds of costs that would be charged at thetime of production process like direct, indirect, fixed and operating costs. Apart from that, thereare few other costs which are likewise implemented at the process. Some of them are discussedas under:1
Historical costs: This is the costs which are associated to the historical facts and figure.This simply refers to the most effective value measuring process which is usable in accountingunder which the price of an assets on the balance sheet. This is normally relied upon its nominalor genuine costs which is required to be achieved at the time of total manufacturing process. Thisis the fixed measurement units assumptions.Absorption costing: This is required to be known as the costs which is incurred on anentire production of the services. Under this, all the costs which are related to the cost ofproduction considered. Fixed and variable costs are considered to be known as directly formingimpacts in the performance if a company. As entire costs are to be known as the identifying asentire costing. Products costs is more than the costs which is known measure according to thevariable costing.Marginal costing: This simply means to those costs which includes with an extramanufacturing of products and services. This simply means to be the considered only variablecosts and fixed costs are ignored while calculating contribution. This kinds of costs are requiredto be known as the period costs. The entire costs is much lower than those calculated as per theabsorption costs. Valuation of closing stock is lowering in marginal costing as compare toabsorption. This is highly reliable for intention of forming an effective decisions(Salehi,Rostami and Mogadam, 2010).Computing Net gain by preparing incomes statements though using marginal costingPARTICULARSJanuaryFebruarySales (35 per unit)315000402500less:Cost of Production (12+8+5)275000237500variable selling overheads (1 per unit)110009500variable cost286000247000Contribution29000155500less:fixed manufacturing overheads2000020000Fixed Admin & selling cost20002000total fixed costs2200022000NET INCOME AS PER MARGINAL COST7000133500NET INCOME AS PER ABSORPTIONCOSTING:JanuaryFebruarySales (35per units)3150004025002
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