Management Accounting: Cost Analysis Report for Finance Module

This report focuses on management accounting and cost analysis, essential for financial decision-making. It explores various cost types, including direct and indirect costs, crucial for understanding the financial aspects of a business. The report delves into absorption costing and marginal costing, providing insights into different methodologies for cost allocation and profit analysis. The content also includes cost-volume-profit analysis, which aids in understanding the relationship between costs, volume, and profit, and how changes in these factors affect a company's financial performance. The report concludes by highlighting the importance of management accounting in providing non-financial data and its role in effective operational management, referencing various management accounting systems such as inventory management, job costing, and profit optimization to support this. References from scholarly articles are included.

Management Accounting
Task 2

Table of Content
 Introduction
 Cost and their analysis
 Conclusion
 References

Introduction
Management accounting includes studying about the organisation's
different areas and provides financial information to managers. The
importance of this aspect is ascertained from the point that it further
aid in better decision making. Transactions recorded with the help of
different management accounting systems on daily basis provides
sufficient data for analysing financial position of an organisation.

Cost and their analysis
Cost is the amount of value associated with the production of goods
and services. Such amount is paid by the customer in exchange
for the products being availed by them. There are different types
of cost that are related to Conway:
 Direct cost are related to expenditure due to producing an article
whereas the indirect cost are not directly related to manufacturing
of the products such as taxes, manager's salary, tools etc.

Cont...
 Absorption costing
 Marginal costing
 Cost volume profits

Cont...

Conclusion
From the presentation it has been concluded that management
accounting helps in providing assistance to managers by studying
the non financial data. Different types of management accounting
system such as inventory, cost accounting, job costing and profit
optimisation are acquired by the management for effective execution
of operations .

References
Šoljaková, L., 2012. Strategic management accounting development
during last 30 years. European Financial and Accounting
Journal. 7(2). pp.24-35.
Spence, C. and Carter, C., 2014. An exploration of the professional
habitus in the Big 4 accounting firms. Work, Employment and
Society. 28(6). pp.946-962.

Thank You