Management Accounting of Imda Tech | Report

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P.1 Function of Management Accounting..................................................................................4
P.2 Different types of Management accounting systems............................................................5
M.1 Benefits of management accounting system ......................................................................6
D.1 Critical Analysis of Management accounting standard........................................................6
TASK 2............................................................................................................................................7
P.3 Income statement by using absorption and marginal costing...............................................7
M.2 Techniques to use the profit in preparing financial report...................................................9
D.2 Interpretation of the various activities of the company......................................................10
TASK 3..........................................................................................................................................10
P.4 Types of budgets ................................................................................................................10
M3.Need for use of different planning and its application for budget......................................11
D3 Evaluation financial tools help in solving financial issues.................................................11
TASK 4..........................................................................................................................................12
P.5 Balance scorecard approach and its implementation..........................................................12
M4 Interpretation of accounting problems................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The project report is all about explain the management accounting of Imda Tech Limited.
It deal with all the provision of financial data and proposal to Imda Tech Ltd for use in company
and control of its business activity. The company is best known for producing effective charger
for mobile telephone and all gadget (Kaplan and Atkinson, 2015). The project contain various
decision related to department manager. Different method of accounting systems that are used by
the company. It consist of decision based on the absorption and marginal costing methods. It
also contains various budget and process or pricing strategies adopted by the company.
TASK 1
P.1 Function of Management Accounting
Management Accounting : It refer to the origin , analysis, summarise and make use of
relevant decision on financial and non financial data to generate and protect value of the
company. It combine accounting ,financial statement and management with skills and
technology used by the company that create value to them (Ward, 2012). The accounting system
of Imda Tech Ltd should reflect the reality and standard to the company objectives. The financial
statement one financial year has to be pre plan that can help to manage the resources of the
company.
Management Accounting Financial Accounting
1. Recording, summarising , analysing and
interpretation of the data is done under the
management accounting.
2. Transaction involve both monetary and non
monetary .
3. It provides information within the company
It help in the preparation of the financial
statement that are based on the operations and
performance.
All the monetary transaction are recorded
under this head.
Financial accounting is focused on the outside

as internal level.
4. It dose not require any law .
5. Reports can be made for set period of time.
persons like shareholders.
While it require certain laws.
It is concentrate mainly on the presentation of
financial reports.
Importance of management accounting as decision making tool for the manager.
Business manager face with decision on daily basis. The accounting makes decision more
reliable for long term basis. These are followed :
1. Relevant Analysis of cost : Information used by the company to determine what and
how to sale (Burritt, Schaltegger and Zvezdov, 2011). The decision related to this
examine the cost differences for each products.
2. Activity based costing : once it being decided that what to sell , the company need to
find out the person who is going to buy it. By using this techniques manager can
determine the require activity for the product line.
3. Cost reduction for the expenditure : Accounting system provide reduction to the
expenses of organisation that are related to functional activities. With the help of
this ,company can pull off or estimate cost of profitable resources and other concern
business activity.
4. Upcoming benefits : The primary ground of accountancy system is to form the budget
in much more easy way that it will increase profitability to the company in the future day.
The Planning has to be clear during the formulation of financial statements.
5. Utilization valuable data : It provide information about to grow our business. Budget ,
financial statement and various balance scorecard can help to guide the manager to take
decision for the company (Parker, 2012).
P.2 Different types of Management accounting systems
Management accounting system is based on tracking the cost that are associated to the
production of products and services in the company. There are various accounting methods like :
 Traditional accounting : It track cost by using the job order and process costing
methods. These determine that how the cost of the company is related to the direct
labour, material and manufacturing overhead.