Management Accounting Essay of Mittelstand
Added on -2020-07-23
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1SECTION 1......................................................................................................................................1PART A...........................................................................................................................................1P1 Management accounting and its essential roles in it..............................................................12 Methods that are required for management accounting in the Mittelstand..............................33 Critically evaluates the benefits of system of management accounting...................................44 (a) Techniques for absorption and marginal costing................................................................54 b) Absorbed .............................................................................................................................84 c) Profit under absorption and production of reconciled statements of the profit and loss.....8SECTION 2......................................................................................................................................9PART A...........................................................................................................................................9(a) Comparison of management accounting methods.................................................................9(b) Methods to prevent financial problems which take place in Mittelstand............................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONThe organisation can be develop their functions and operations to provide goods andservices to consumers. In this aspect, management accounting play very important role forascertain effective functions and operations. In this way, different types of plan undertake suchas short and long term profits (Nuhu, Bala Appuhamilage and Bala Appuhamilage, 2017). Withthis regard, present report based on Mittelstand that deals in manufacturing of machinery,electrical equipments and many other elements. In order to gain insight knowledge of the chosenbusiness, report covers management accounting system. Moreover, it includes planning toolswhich can be used to make effective functions and operations at workplace. In addition to this, itdetermines importance of management accounting in respect to make decisions with improveperformances. SECTION 1PART AP1 Management accounting and its essential roles in it.There are different types of accounting has been taken which assists to grow effectiveresults in the business unit. They are as follows:Management accounting: Management accounting includes process in which various reportsprepares to get outcomes on time and accurate information of the statistical and financial system.Within the Mittelstand, information assists to make short and long term decisions which enhanceprofitability results in successful manner. For example, sales report generated through usingmanagement accounting which utilise through different stakeholder in respect to gain knowledgein systematic way. These type of report typically present the data that are related to the payables,cash receivable, etc. (Nuhu, Bala Appuhamilage and Bala Appuhamilage, 2017).Financial accounting: However, financial accounting include a process that develop throughascertain financial transaction in systematic way. It is produces by financial accounting systemwhere different types of transaction recorded. It can be summarised in the systematic way whichcould be present in well and proper format. For instance, report make for income andexpenditure calculation, balance sheet, etc. (Cullen, Tsamenyi and Gorst, 2013).Differences between management accounting and financial accounting1
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