Management Accounting ! .

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

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MANAGEMENT ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Key Performance Indicators........................................................................................................2
Analysis of KPI............................................................................................................................3
Limitation of KPI.........................................................................................................................4
Conclusion and Recommendation...................................................................................................5
Reference.........................................................................................................................................6

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MANAGEMENT ACCOUNTING
Introduction
The main purpose of the assessment is to analyze the financial statements of AHB
Holdings Berhad and the business is engaged in manufacture of furniture. The management of
AHB Holdings Berhad is engaged in innovative production process so that the products of the
company are innovative (Ahb.com.my., 2018). The assessment identifies five key Performance
Indicators (KPI) of the business on the basis of the annual report of the company for the year
2017 and describe the importance of KPI in the business. The assessment would also identify
limitations of KPI of the business.
Discussion
Key Performance Indicators
The key Performance Indicators of the business reflect the key events which determine
the performance of the business. The key indicators which can be identified from the annual
report of the business are listed below in details:
 Net Profit: The net profit of AHB Holdings Berhad is shown to be RM 513,644 for the
year 2017. The profit of the business has fallen significantly in comparison to previous
year and thus it can be said that the performance of the business for the year is in
appropriate. The net profits of the business are the main indicators of financial
performance of a business.
 Operating Costs: The operating costs of any business determine the profitability of a
business and for AHB Holdings Berhad, the operating costs of the business is shown to
have reduced slightly for the year 2017. The decrease in costs can be considered to a
indicator for the success of the business.