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Management Accounting of IMDA

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Added on  2020-01-23

Management Accounting of IMDA

   Added on 2020-01-23

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MANAGEMENTACCOUNTING
Management Accounting of IMDA_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK.1............................................................................................................................................3A)............................................................................................................................................31.1 MA and differences between MA and FA: .....................................................................31.2 Importance of MA:..................................................................................................4B)............................................................................................................................................5TASK.2............................................................................................................................................6Net profit as per absorption costing and marginal costing:....................................................6TASK 3............................................................................................................................................8P4 Plan and their advantages and disadvantage with Pricing strategies along with Process ofpreparing budget.....................................................................................................................8TASK4 ..........................................................................................................................................11P5 Balance scorecard approach and its implementation......................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONNowadays, management accounting is an important in the corporate world for effectivedecision making in the organisation. With the help of management accounting, organisationwould able to get the competitive advantage over the competitors. Every department is directlyor indirectly is completely linked to finance/accounting department for the organisation'ssuccess. There has been completely changed that the organisation would able to make that thecompany on the peak position with the help of implementing the management accountingstandard. Management accounting assists the business to take the crucial business decisions andstimulate the business to take the effective business performance(Ward, 2012). Managementaccountants are specially known for the mix of operations, management and strategy.Management accounting assist the senior managers to make the strategy, for businessmanagement, and for the business operations. TASK.1A).1.1 MA and differences between MA and FA: Management accounting helps the organisations to make an effective and efficientstrategy for making the business sustainable. While making the strategy of IMDA Tech LTD, management accountants plays undermentionedrole in the organisation.Investigate professional workplace Assess vital choices Outline and run performance management system Assess and oversee business hazard Lead business or corporate valuationOversee monetary hazardSurvey, review and assess risk controlApply risk management tool Detail and assess budgetary system Model and estimate money streams and different funds Prompt on mergers, acquisitions and divestment's
Management Accounting of IMDA_3
Oversee changeand so on.While for effective management in the organisation, management accountants also helps thecompany to implement the plans for effective running of the business.FA is implemented to display the monetary soundness of a firm to its outside partners.Senior managers, stockholders, financial institutions and varios investors are the group who areconcerned to the FA reports. It reflects an specific time-frame in the past and authorise thosegroup of audience to realize how the organization has performed. FA reports must bedocumented on a yearly basis, and for publicly exchanged firms, the annual report must be madein some portion of people in general record(Zimmerman and Yahya-Zadeh, 2011).Management accounting is utilized by the top level authorities to frame crucial decisionswhich are related to their everyday operations. It is construct not in light of previousperformance, but instead on present and future trends, that does not consider correct numbers.Since administrators usually requires to frame operational decisions under a short time-frame ina fluctuating domain, MA depends intensely on anticipating of business sectors and patterns.Management accounting is expose the inner picture of the organisation. While on theother hands, FA is used mainly for various stakeholders. However, FA is of incrediblesignificance to present and potential investors, MA is essential for supervisors to settle onpresent and future financial decisions. Financial accounting requires to adhere GenerallyAccepted Accounting Principles (GAAP), However, management accounting is frequently to ahigher degree a projection or estimate, since many of the managers don't have time for an exactnumbers when a decision is required to be made.1.2 Importance of MA:Entrepreneurs faces with endless decisions every day. Management accounting assist torender information driven contribution to frame these kinds of decisions, that could build thelong term decisions over the long period of time (Types of Budgets for Businesses. 2017). Privateventure supervisors can implement this effective device to assist in making their business morefruitful and effective by seeing how management accounting benefits regular decision making. Relevant Cost Analysis:
Management Accounting of IMDA_4

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