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Management Accounting Assignment - Tesco plc

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Added on  2020-12-29

Management Accounting Assignment - Tesco plc

   Added on 2020-12-29

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MANAGEMENT ACCOUNTING
Management Accounting Assignment - Tesco plc_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1P3 Techniques of cost analysis...................................................................................................1P4 Advantage and disadvantage of planning tools.....................................................................3P5 Compare organisation regarding to financial problem..........................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
Management Accounting Assignment - Tesco plc_2
INTRODUCTIONManagement accounting is the process of preparing management reports and accountsthat provide accurate timely and financial and statistical information which is used by managersregarding to decision making process (Agrawal and Cooper, 2017) . On the basis of these reportsmanagement can control internal activities and achieving business goals and objectives. Tounderstand the concept of particular report selected organisation Tesco plc, which is a Britishmultinational groceries and general merchandise retailer. In the report consist of techniques ofcost analysis to prepare income statement. Furthermore, pros and cons of planning tools whichcan use to budgetary control and management accounting system to sort out financial problem. MAIN BODYP3 Techniques of cost analysisAbsorption costing Method – The particular method known as managerial accountingcost method where defined all costs which is related to producing of different products and it isbased on the generally accepted accounting principles. There are defined some direct costs whichis related to overhead cost and utility cost. Marginal Costing Method – It is a costing technique where are including variable costto charged unit of cost. The fixed cost has been completely written off to the contribution. Theformula of the marginal cost = Direct material + Direct Labour + Direct expenses + Variableexpenses. It has been categorised into two cost first one fixed cost and second variable cost. Average production Cost - Direct Material 30000Direct Labour 20000Variable Production Overhead 12000Fixed cost (10000+6000+5000)21000Total production cost 83000Marginal Cost per unit Direct Material 1.33Direct Labour 0.5Variable production Overhead 0.31
Management Accounting Assignment - Tesco plc_3

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