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Management Accounting Assignment | Imda Tech

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Added on  2020-01-07

Management Accounting Assignment | Imda Tech

   Added on 2020-01-07

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MANAGEMENTACCOUNTING
Management Accounting Assignment | Imda Tech_1
Management Accounting Assignment | Imda Tech_2
INTRODUCTIONThe method under which different number of financial transactions like as incomes andoutcomes are recorded, analysed, assessed, monitored etc. by the managers and responsibleemployees for making business decisions is called as management accounting. All the businessentities which operate in the industry adopt the respective accounting system for make the firmprofitable along with taking decisions for the internal business environment. The current casescenario is to be explained using the business like as Imda Tech which provide the products suchas specific kind of chargers for mobile phone and electronic gadgets. The report describes aboutthe systems which are beneficial for the Imda Tech which comes under the managementaccounting as well as make difference of management as well as financial accounting. Thesecond part is all about the determining net profit by considering two costing ways such asmarginal and absorption. In the third task of the project, phases tgo making budget statements,pros and cons of various budgets as well as the techniques to determine selling price of thechargers for Imda Tech are explained. With the help of last part, the reader able to understandabout the Balanced Scorecard (BSC) concept and its importance at the workplace. TASK 1A) I. Explaining management accounting along with making difference with financial accountingThe process and method under accounting which supports to identify, assess, measure,analyse, prepare as well as interpret the financial information and data to make effectual plan andimplement at the workplace is identified as the management accounting. In the world ofaccounting there are two main concepts come which are like as the financial as well asmanagement by which Imda Tech external and internal decisions for business (Rossi, 2014).Moreover, difference among such mentioned both the concepts of accounting is describes asbelow:Financial AccountingManagement Accounting1
Management Accounting Assignment | Imda Tech_3
The concept which is used by the businesses inorder to assess the overall businessperformance in terms of the financials andprofitability is identified as financialaccounting.The management accounting is used by onlyinternal stakeholders of Imda Tech to knowthat how much costing is there for making themobile phone chargers and different types ofthe electronic gadgets.It provides the financial statements to theexternal stakeholders by which they able tomake decisions towards the company thatwhether to purchase products and investmoney or not in Imda Tech (Kotas, 2014).On the other side, by analysing the internalreports the company determine that someproducts or in process goods needs to producewithin firm or purchase from the suppliers andoutsiders.To prepare accounts in this, there are specificformates along with the time periods stated andframed by the authorized body. The time framefor prepare financial accounts are like asquarterly, half yearly or at the end of fiscalyear.At here, to make the books of accounts thereare any type of the formats as well as particulartime period is not there. The Imda Techwhenever needs and wants to take decisionsthen can prepare. In financial accounting, those transactions arerecorded and analysed which relies under theonly financials and monetary form.On the other hand, all kinds of transactions anddata recorded whether they are comes underthe monetary or non financials.To make statements necessary to follow andimplement all the accounting standards andtheories like as GAAP, IAS, IFRS etc.There are any kinds of requirement is not tomake the accounts (Difference BetweenFinancial Accounting and ManagementAccounting, 2016).The financial statements like as balance sheet,profit and loss, cash flow etc. are to beanalysed and verified by the external partiesand auditors such as Chartered Accountantsetc.Due to preparing at the internal level withoutconsidering any accounting theories andaspects verified by the internal parties andmanagers only.In this only past as well as the historicalinformations and financial data are focused andAt the current accounting aspect and systemthere are present or current data are analysed2
Management Accounting Assignment | Imda Tech_4

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