Management Accounting Practices at Easter Engineering Co. Ltd

Unit 5 Assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Principles of management accounting and their importance with the help of relevant examples
......................................................................................................................................................3
Different techniques and methods used for the management accounting reporting....................3
Advantages and disadvantages of budgetary tools......................................................................3
Comparison of adaptation of management system for responding to the financial problems in
the organization............................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Management accounting is the process of preparing reports about the business operations
which are considered to be helpful for the managers for making short-term and long-term
decisions. It is the branch of accounting which is known for being helpful for an organization in
the identification of the goals and measuring, analysing, interpreting and communicating
information to the managers. In this project the management accounting practices of the Easter
Engineering Co. Ltd will be analysed. It will discuss the different management accounting
principles which are useful for the integration of the management accounting system. The
different techniques and methods which are used for management accounting reporting has been
also analysed. The key advantages and disadvantages of the budgetary tools have been discussed.
MAIN BODY
Principles of management accounting and their importance with the help of relevant examples
There are different principles to the management accounting of the organization which
are considered to generally accepted,
Designing and compiling :
Accounting information are given in different forms, records, reports, statements and
other evidences for the past, present and the future which results in the designing and
compilation of the needs.
Management by exception :
Exceptions which are considered to be the factors that influences the presentation of the
information for management. This is the tool of budgetary control system and standard costing
techniques which follow the management accounting system (Bandara and et.al., 2020).
Control at the sources accounting :
Management accounting helps in controlling and pointing the ways in which the source
accounting with the performance of the individual workers, details related to the materials and
issues for the utilization of the services such as machine, power, repairs and maintenance of the
vehicles are use for quantitative and qualitative information.
Accounting for inflation :
The information of the organization can be considered to be the factor which influences
value of capital that is helpful for the contribution of the owners business decision-making. This
is also the real value of money which helps in the revaluation of the accounting. For example,