Management Accounting Principles

Title
Management
Accounting
Principles

Table of content
– INTRODUCTION
– Calculation for preparing financial statement (Part A)
– Income statement under variable costing
– Income statement under absorption costing
– Principles of management accounting
– Role of MA and MAS
– Types of MAS and their role
– Management accounting reports
– Method employed in preparation of income statement
– Explaining how MA is integrated within an organisation
– Discussion of benefits of key functions to enterprise
– Conclusion
– References

INTRODUCTION
Management Accounting described as accounting
method/mechanism which primarily focuses towards aligning all process of
gathering all key financial information which can be applied in decision-
making tasks. MA is adopted by business
enterprises for systematically reporting relevant and effective reports to top-
managing personnel with aim to support as well as increase the
reliability and accuracy of decision making.

Calculation for preparing financial
statement (Part A)
Overview of financial data:
Particulars Amount
Total fixed indirect production cost 84,000.00
Direct labor costs per unit 11.00
Direct material costs per unit 17.00
Variable expenses which vary in direct ratio to production per unit 7.00
Sale 3,000
Selling Price per unit 92.00
Production rate 3,600
Selling and Distribution 5,700.00
Administrative overheads 10,500.00
Interest expense 1,200.00