Management Accounting

MANAGEMENT
ACCOUNTING

TABLE OF CONTENT
Introduction
Main Body
Conclusion
References

INTRODUCTION
Management accounting is defined as analysis and evaluation of the financial
information in order to take the management decisions for the betterment of
the company.
The present report is based on company GSQ limited which is a
manufacturing company located in UK. The report will discuss about
different management accounting system along with their application and
advantages and disadvantages.

Different types of costing techniques
used by GSQ ltd.
Marginal Costing
It refers to the cost for an additional unit of an output and this concept is been used for determining optimum
capacity of production for GSQ in which it charges least or minimum for producing an additional unit. Under
this variable cost is only charged to cost units whereas fixed cost for a period is entirely written off against
contribution.
Absorption Costing
It is the method that accumulates costs attached with the process of production and apportioning them
to an individual product. It is the type of costing which is needed by an accounting standard for
creating valuation of an inventory. A product might absorb wide range of the variable and the fixed
costs.

CONCLUSION
From the above it has been concluded that MA systems plays an essential role in managing and maintaining an
adequate inventory level with optimum use of resources. MA reports helps in the preparing for the standards on
the basis of which task are been performed that in turn helps in ensuring proper controlling and gaining higher
sales or revenue.

REFERENCES
Bromwich, M. and Scapens, R.W., 2016. Management accounting research: 25 years on. Management Accounting
Research. 31. pp.1-9.
Christ, K.L. and Burritt, R.L., 2017. Water management accounting: A framework for corporate practice. Journal
of cleaner production. 152. pp.379-386.
Dekker, H.C., 2016. On the boundaries between intrafirm and interfirm management accounting
research. Management Accounting Research. 31. pp.86-99.