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Management Accounting System: PDF

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Added on  2020-11-23

Management Accounting System: PDF

   Added on 2020-11-23

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Management accounting
Management Accounting System: PDF_1
TABLE OF CONTENTContentsINTRODUCTION...........................................................................................................................3P3. Income statement of chair manufacturing company of three years using marginal costing and absorption costing.................................................................................................................3P4. Advantages and disadvantages of planning tools used for budgetary control.......................8P5.Organizatiins are adapting Management accounting system to solve their financial problems.....................................................................................................................................11CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16
Management Accounting System: PDF_2
INTRODUCTIONManagement accounting is the process of analyzing business costs and operations from which they can prepare final accounts and which can communicate to its users which help them in their decision making.The report will explain about the management accounting system and how the organization is habitual of accepting the management accounting system to solve their financial problems. Also it includes the various planning tools available for budgetary control of the organization .in addition to this the income statement of chair manufacturing business of 3 years will be explained with different techniques of cost analysis.P3. Income statement of chair manufacturing company of three years using marginal costing and absorption costing.year 1year1Income statement (by marginal costing)Income statement( by absorption costing)particularsamounttotal amountParticularsAmounttotal amountSales2520000Sales2520000less: Marginal costless: marginal costDirect material480000direct material480000direct labor640000direct labor640000variablemanufacturing overheads800000variablemanufacturing overhead800000variableselling 10000fixed manufa64000
Management Accounting System: PDF_3
and administration overheadcturing overheadclosing stock40001926000closing stock40001980000Contribution594000gross profit540000Less:selling& distribution overhead10000Less administration overheads15000less: interest expense1000less: selling and administrative overheadprofit568000Variable10000Fixed15000interest expense100026000year 2net profit514000Income statement (by marginal costing)particularsamounttotal amountyear 2Sales2800000Income statement (by absorption costing)less: Marginal costParticularsAmounttotal amountDirect material576000Sales2800000direct labour768000less: marginal cost
Management Accounting System: PDF_4

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