Management Accounting: Cost Analysis, Budgeting, Marginal and Absorption Cost

Management Accounting

Table of content
Introduction
Meaning of cost & cost analysis
Flexible budgeting & Cost variance
Marginal & absorption cost
Valuation method
Income statement marginal cost
Income statement absorption costing
Conclusion
References

Introduction
The term management accounting is explicated as a process of analysing, collecting and reporting overall
information related with functions and operations of organisation. In simple terms, management accounting is
explained as an activity which tracks all information and data related with financial factor of business. Jeloa
Limited is selected as an organisation for this report and the section learn from the upcoming reports is
management accounting and its types. Different method and their use for management reporting will also include in
this report. Cost calculation and methods for preparation of income statement is also understands through this
report. In the last, advantages and disadvantages of planning tools and their use in budgetary control is focused in
the report.

Meaning of cost & cost analysis
COST- The term cost refers to expenses which are occurred at time of manufacturing and there are used to
manage operations and functions. It is also classified according to the categories of product. Direct, variable,
Indirect and fixed cost related with business is included under cost perspective. Jeloa Limited also engage labour
cost, supplier and material cost and this denote with whole process that is used for affiliating about overall cost
related with production system.
COST ANALYSIS- This technique relates with the determination of divergence and it include all
expenditures and earning. One of the most important objective consider towards analysis of financial information
and situation through which separation among all factors is included by management. All cost analysis factors
improve the situation of Jeloa Limited through controlling product cost and margins.