Management Accounting: Examination of Monthly Report, Performance Evaluation, and Online Trading Decision

Management Accounting

Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
A)Examination of the report on the basis of month that is stating the flexible budget and
original variances.........................................................................................................................1
B) Evaluation of the performance of the financial year of corporation with the aid of control
report that is created above..........................................................................................................2
C) suggestions to the Amana ltd.'s CEO with improvements......................................................3
PART B............................................................................................................................................4
Evaluate the decision of the Mr Amana about online mode and explain the settlement of own
online trade with Amazon by keeping in mind the total cost......................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
A budget is a plan that present the status of the income of a individual or company and
analyse the how much the business will require the money. It is procedure of analyse the
capacity of the enterprise to spend the monetary value in a specific given period of time. Budget
is utilized for forecasting the financial position as well results of the business entity for the
upcoming time period (Baoyin and Bo, 2022). It helps in planning and measuring the
performance that can include spending for assets that are fixed in nature, providing training to
the employees, fixing up the bonus plan and so on. It has been prepared for the monthly,
annually, quarterly and half yearly. It is very important and necessary part to create a budge
before implementing the project or operation activity for the organization. It contains the list of
expenditures and incomes. This procedure helps to make the profits and control the expenses as
well. In this report, the explanation presents that the statement that prepares on monthly basis is
core or necessary part of any corporation or new business for showing the actual position and
create the estimation budget of Amana ltd. and examine the differences. The evaluation of the
action and performance has been done during the pandemic Covid- 19.
PART A
A)Examination of the report on the basis of month that is stating the flexible budget and original
variances.
The control report of month: It comprises the mandatory and important data that relates with the
several kind of direct and indirect cost like cost overhead, wages, labour, salaries and expenses
that connects with the cost of direct and as well indirect. This report aids to the business entity's
manager of strategic to check out the activities cost total that spent for figuring out the solution
that how to minimize or reduce the cost of activities (Black and et.al., 2019). It helps to provide
the internal data of the corporation that are related with the future incomes in a specific period of
time and incurred cost as well. It states the deviations that represents the availability of the actual
and estimated. It helps to the business in decision making to reduces the variances.
Original budget: It refers to the budget that has already prepared. It based on the previous
information which incurred the cost in the previous time and the level of production as well. The
businessman considered it as simple and easiest way to evaluate the performance of the
organization of further year or with the help of budget. It aids to select out or analyse the
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