Management Accounting Report for Tech (UK) Limited

Management accounting report for Tech
(UK) Limited
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Table of Contents
Introduction....................................................................................................................................3
Task 1..............................................................................................................................................4
Introduction................................................................................................................................4
a) (I–V) (M1, D1)........................................................................................................................4
b) (I-II)........................................................................................................................................5
Conclusion..................................................................................................................................6
Task 2..............................................................................................................................................7
a) (I –II) (M2, D2)......................................................................................................................7
Task 3..............................................................................................................................................9
a. (b, c) (M3, D3)........................................................................................................................9
Introduction................................................................................................................................9
Conclusion................................................................................................................................11
Task 4............................................................................................................................................12
a. (M4, D3)................................................................................................................................12
Conclusion....................................................................................................................................13
References.....................................................................................................................................14
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Introduction
The assignment consists of the report consisting of the management accounting importance along
with the cost accounting system, Inventory management system, job costing system. There is a
short description of the differentiation between the management and financial accounting along
with the managerial accounting report and presentation of the same in an understandable way.
Marginal and absorption costing are also being included in the assignment along with the income
statement and analysis. The various types of the budget along with their advantages and
disadvantages and the process for preparation is stated. The importance of budget in the
company as planning and the strategic tool is also included in the assignment. Various planning
tools and the use of them in tackling the financial problems are stated. There is also the inclusion
of the balanced scorecard technique and the comparison of the same with the management
accounting tool benchmarking.
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Task 1
Introduction
The report consists of the brief about the management accounting system and it's important in the
decision making of the company along with detail about the cost accounting system, Inventory
management system and Job Costing. There is also the inclusion of the types of managerial
accounting reports and importance of its presentation in an understandable way.
a) (I–V) (M1, D1)
Management accounting can be defined as the interpretation and recorded of the data in a way
that it helps the managers in the decision making of the company. Management accounting
consists of both the financial accounting and cost accounting depending upon which the
managers analyse the data available. Management accounting systems are the system established
by the company for the internal process and analyse the statements and data (Surum, 2018). The
Tech (UK) Limited can be benefitted with the help of the management accounting and systems
by reducing the cost and expenses through analysis of the quality of the resources. It can also
facilitate the decision making of the company by forecasting and analysis of various factors.
The difference between the financial Accounting is to provide the information and interpretation
of the transaction recorded for the external stakeholders of the company whereas the
management accounting is for the internal members of the company for an effective and efficient
use of the resources and working (Francis, 2018). The financial accounting of the company must
be prepared and presented depending upon the guidelines issued by governance bodies whereas
the Management accounting is a mere estimation or guess made for the decision making of the
company. The management accounting will help Tech (UK) Limited in better controlling and
coordination through plans.
The Management accounting follows various techniques and analysis on the basis of forecast and
historical data available to the management. It acts as a decision-making tool as depending on the
results and data available they make the plans and policies of the company (Freedman, 2018).
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