Trusted by 2+ million users, 1000+ happy students everyday
Showing pages 1 to 3 of 8 pages
MANAGEMENT ACCOUNTING
TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 TASK 3............................................................................................................................................3 Merits and demerits of planning tools implicated for budgetary control....................................3 Implicating use of planning tools for operation...........................................................................5 Management accounting techniques respond in resolving financial problems...........................6 Management accounting techniques enables in meeting financial sustainability........................6 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Accounting involves various methods and techniques which implicates b business as per determining internal financial condition of business. Implicating management tool which brings clear analysis over internal activities and highlights loopholes of entity. It enables managerial professionals to generate new ideas and alternative solutions in managing operational efficiency of firm. In the following report there will be discussion based on various planning tools that helps in budgetary control as well as management accounting tools used for improving financial stability in business. Ascertaining such factors will be helpful as it brings accurate outcomes among managers in terms of accurate analysis as well as decision making. TASK 3 Merits and demerits of planning tools implicated for budgetary control Budget developed by accounting professionals in entity as per analyzing the transactional activities such as inflows and outflows of funds for various operations. Management of budgets will bring accurate determination of various outcomes and bring administrative control over business activities. Activity based budgeting: the budgets are based in each operating activities in a business. Therefore, in an organization there various activities and each required different set of funding. It can be said that purchasing material, selling, goods, and production as well as marketing activities requires various funding options(Mack and Goretzki, 2017). Thus, in relation with meeting such requirements of the business there has been appropriate increment in the revenue and the operational practices. It administers the costs incurred in these activities and suggests the alternative solutions to reduce costs. Advantages: These budgetary tool benefits an entity in improving the operational process of activities There will be better allocation of capital funds in all the tasks as well as the suitable solution will be made in against the costs.
Found this document preview useful?
You are reading a preview Upload your documents to download or Become a Desklib member to get accesss