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Management Accounting of UCK Furnitures

   

Added on  2020-07-23

10 Pages2986 Words55 Views
MANAGEMENTACCOUNTING[PROJECT-2]
Management Accounting of UCK Furnitures_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Calculate cost using appropriate techniques of analysing cost and prepare incomestatement.....................................................................................................................................11.2 Accurately apply a range of management accounting techniques and financial reporting...21.3 Produce financial reports accurately apply and interpret data for a range of businessactivities......................................................................................................................................2TASK 2 ...........................................................................................................................................32.1 Advantages and disadvantages of various type of planning tools using in budgetarycontrol.........................................................................................................................................32.2 High low method to determine the expenses if the numbers for July and August is 650 and750...............................................................................................................................................52.3 Purpose of budget and preparing cash budget.......................................................................5TASK 3............................................................................................................................................63.1 Compare how organisations are adapting management accounting system to respondfinancial problems.......................................................................................................................63.2 how management accounting can help to improve the financial performance of bothcompanies to attain sustainable success......................................................................................73.3 evaluate the planning tools used in management accounting to reduce the financialproblems......................................................................................................................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTIONCalculating the cost and preparing the budgets are the essential elements of managementaccounting (Chiwamit, Modell and Yang, 2014). This report defines the cost calculatingtechniques to determine the cost and profit for UCK furnitures. Planning tools are also definedwhich are used in budgetary control process. Ways are compared that how business areimplementing management accounting system to respond financial problems. Practical examplesare defined in this context subject to evaluating the cost and budgetary control. Evaluationmethods are also described in respect of financial problemsTASK 11.1 Calculate cost using appropriate techniques of analysing cost and prepare income statementMarginal costing: it is one of the accounting technique which is used by the organisationto evaluate the cost of product and calculate the profit (Albuand Albu, 2012). All variable costsuch as direct material, direct labour and direct expenses are considered in while calculating thecost of the project and profitability. Combination of direct material, labour and direct expensesare considered as prime cost. Some of the part of fixed cost also considered in in marginalcosting while calculating the profit. Absorption costing: this is one of the costing technique which helps to calculate the costof product with the help of considering the all the variable and fixed cost. This costingtechniques is also considered as over all cost evaluating technique (Callahan, Stetz and Brooks,2011). Direct and indirect cost which are incurred while calculating the cost of productconsidered in this costing technique.Calculation of profit as per marginal costingParticularsJanuary February Sales (35 per unit)315000402500less:Cost of Production (12+8+5)275000237500variable selling overheads (1 per unit)110009500variable cost286000247000Contribution29000155500less:fixed manufacturing overheads2000020000Fixed Admin & selling cost20002000total fixed costs2200022000NET INCOME AS PER MARGINAL COST7000133500Calculation of profit as per absorption costing1
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