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Management Accounting - Imda tech Assignment

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Added on  2019-12-28

Management Accounting - Imda tech Assignment

   Added on 2019-12-28

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MANAGEMENTACCOUNTING
Management Accounting - Imda tech Assignment_1
ContentsINTRODUCTION.......................................................................................................................................3TASK 1.......................................................................................................................................................3P1 Management accounting and its requirement.........................................................................................3P2 Methods of management accounting reports......................................................................................4TASK 2.......................................................................................................................................................5P3 Calculation of cost with the help of marginal and absorption costing approaches..............................5TASK 3.......................................................................................................................................................8P4 Different type of planning tools for budgetary control.......................................................................8TASK 4.....................................................................................................................................................10P5 Effective approaches to deal with financial problems with the help of management accounting.....10CONCLUSION.............................................................................................................................................11REFERENCES..........................................................................................................................................12
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INTRODUCTIONManagement accounting helps an organization in its preparing their daily routine reports through which they can take effective decisions which are beneficial for a firm. These are totally based on short run and thus their outcomes are providing future benefit to an entity. Hence management accounting is an effective approach which should adopt by managers while preparing weekly, monthly and quarterly reports (Hammad, Jusoh and Ghozali, 2013). If managers found any deviations in working then they can settle it down according to its nature and kind. Thus this is a main benefit by management accounting for any business purpose. The present report is based on Imda tech which is one of a company who generally made special type of charger and gadgets. Their products are satisfactory in nature. In this assignment methods of management accounting reports are also discuss with the cost efficiency techniques. Also importance of budget is going to be discuss in this report and how firm is going to respond different financial problems which occur during an entire year. All these things are going to be discuss in this report in more detailed form so that an organization can take effective decision which are concern with their business entityTASK 1P1 Management accounting and its requirement Management accounting helps all the managers to prepare their short run reports of their daily and weekly operations through which they can sort out all deviations in an appropriate manner. It is also consider as the advice to an organization on which effective and suitable decision can be taken out (Balakrishnan, Labro and Soderstrom, 2014). They use to drive out the success of a firm in a systematic manner because they combine both the financial and non-financial data to make a complete picture. These reports typically shows the cash statement, salesand revenue generation etc. statements from which managers can easily find out that which is a most essential component of working. As per the information it get identify that managerial accounting of a firm aid an organization to take beneficial decisions which are helpful for them for better future. It is completely concern with the short term decision and evaluation of reports which are prepared on daily/ routine basis. Hence it is consider as an essential requirement component because whole operational judgments are related with this management accounting approach. For this purpose several number of management accounting system are already in trend which are utilizing by managers to identify the rate and range of profit which a firm can attain in near future course of time. Managerial accounting is refer to such records and analysis of data and information which are gather by managers in manual or computerized form. It is totally belong to such situation when an entity track the cost of production which is related with their manufacturing of goods and services which are offered by them to their target number of customers. The different number of managerial accounting system are as follow: 1.Cost accounting: This approach is beneficial because it leads to analyze cost which is incur at the time of job order processing or process costing. Job order costing method is
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useful at the time of tracking the cost which get indulge on large business project and they took some couple of years in its execution whereas on the other hand process costingrefer to as such situation when there is a continuous flow of production of goods and services. Such operations are taking place on regular basis and take more cost as it cannotget identify properly. 2.Lean accounting: This method is completely different from the traditional cost accounting method because its boundaries are not limited to cost only. It is extent beyondmeasuring the cost because it lead in eliminating all wasteful resources and promote in making the success criteria of project more (Baldvinsdottir, Mitchell and Nørreklit, 2010). Bypreparing reports any excessive cost get identify although managers by consulting this technique can control such type of unnecessary wastage in an appropriate manner. 3.Throughput accounting: The main purpose behind using this approach is to identify the requirement which is mandatory for a firm in making their production related activity more successful. By conducting this technique managers can identify the insufficient amount of material, labor etc. so that they can increase their production and provide appropriate quality products (Breuer, Frumusanu and Manciu, 2013). 4.Transfer pricing: As per this method transfer pricing leads to increase the cost of a good because in this scenario product pass on from different number of departments and they all add some value in it. Hence all these are some of the famous approaches which are using by some organizational managers in identify that their cost are in control or not. Along with this they can also minimize the chances of wasting of resources so that all task can get execute in a proper manner. Imda tech can use such management accounting system for calculating their cost of production. They can control their cost and look over on reports on all such operations which are taking place in a firm on their routine basis. Hence this approach is useful for their managers if they consult. P2 Methods of management accounting reportsReports are prepared with the purpose to identify the circumstances and unfavorable situations which might get arise in an organization. These reports are helpful in finding out such deviations and managers tend to work on them as soon as they can. So these reports are helpful and increase chances of success of any firm more than desire probabilities. So it’s a basic duty ofeach and every departmental manager to prepare reports on daily and monthly basis as it lead in making and working on operations in an appropriate manner. These reports are helpful in analyze the performance of a business and lead to take effective decision on the basis of them. Financial reports are providing the details which are related with long run purpose of business and they are generally for the external stakeholders of business. On the other hand managerial accounting reports have a significant purpose which is totally concern with internal stakeholders of a firm and management have to take decisions on their basis. Also these reports aid them to take suitable judgments by analyzing and interpret the data which are based on short
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