BTEC HNC Business: Management Accounting Planning Tools Presentation

This presentation, designed for a Management Accounting assignment, provides a comprehensive overview of various planning tools utilized in the field. It begins with an introduction that highlights the presentation's objectives, which include comparing different management accounting planning tools and assessing their effectiveness. The presentation then delves into specific tools, such as financial planning, financial statement analysis, historical cost accounting, budgetary control, standard costing, break-even analysis, variance analysis, marginal costing, decision accounting, and revaluation accounting. Each tool is briefly explained, outlining its purpose and application within an organization. The presentation further explores how these planning tools are employed in budget preparation and forecasting, specifically mentioning SCORO and PROPHIX as key tools. Furthermore, the presentation discusses the role of management accounting techniques in achieving sustainable success in business, providing examples such as break-even analysis and standard costing. The presentation concludes by summarizing the different tools and techniques discussed and referencing relevant sources.

MANAGEMENT
ACCOUNTING
STUDENT ID:

TABLE OF CONTENTS
Title of Slides Slide No.
Introduction 3
Planning Tools Used for Management Accounting 4
Use of Planning Tools for Preparing and Forecasting Budget 11
Role of Management Accounting in Achieving Sustainable Success 12
Conclusion 13
References 14

INTRODUCTION
• This presentation is designed to depict comparison of different planning
tools used in management accounting.
• It will also provide judgement on effectiveness of each tool with appropriate
reasons.
• This presentation would also facilitate the ways and examples, in which the
management accounting is applied for dealing with financial problems in
organizations and also for preventing the financial problems in
organizations.

PLANNING TOOLS USED FOR
MANAGEMENT ACCOUNTING
• Financial Planning
• Financial Statement Analysis
• Historical Cost Accounting
• Budgetary Control
• Standard Costing

CONTINUED…
• Break Even Analysis
• Variance Analysis
• Marginal Costing
• Decision Accounting
• Revaluation Accounting

CONTINUED…
• Financial Planning:
• Under financial planning, the short-term and long-term financial goals are
designed for the company. Capital structuring is also a major part of
financial planning that is performed by financial managers in companies.
• Financial Statement Analysis:
• There are different techniques used for analysis of financial statements of
the companies such as ratio analysis, horizontal analysis and vertical
analysis.

CONTINUED…
• Historical Cost Accounting:
• Under historical costing technique, the actual costs in business are
compared with the historical costs in order to evaluate performance of
company.
• Budgetary Control:
• With the application of budgetary control technique, actual performance of
company is compared with the budgeted values in terms of different types
of expenditures and overheads.

CONTINUED…
• Marginal Costing Technique:
• Marginal costing technique is highly beneficial technique for the financial
managers to evaluate impact of marginal cost on profit of company with the
change in output.
• Decision Accounting:
• Under this technique different decisions are taken in organization like
whether the should make a product or buy it and capital expenditure
decision.

CONTINUED…
• Revaluation Accounting:
• Under this technique, effect of inflation is taken into account on overall
accounting values for better judgment about accounting performance of
company.
• Break Even Analysis:
• This technique is also highly beneficial for management accountants in
order to determine minimum level of sales that will be required by
organization for recovering total invested cost of capital in business.

CONTINUED…
• Variance Analysis:
• This technique is also like budgetary control technique, in which the
difference of budgeted/ standard costs is compared with actual costs in
business. If the variances are unfavourable, new decisions are taken for
business for improving the performance.

USE OF PLANNING TOOLS FOR
PREPARING AND FORECASTING
BUDGET
• SCORO and PROPHIX are the two major planning tools that are used for
preparing and forecasting budget. SCORO facilitates single solution for
different budget controls
• There is an attribute of PROPHIX that it gets consistently scaled and
upgraded in association with the growth of organization. In this context, it
becomes easier for management to do forecasting at different times.

ROLE OF MANAGEMENT
ACCOUNTING IN ACHIEVING
SUSTAINABLE SUCCESS
• There are different management accounting techniques that are helpful in
achieving the sustainable success in business.
• Example of these techniques includes break even analysis technique,
standard costing technique and the marginal costing.