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P4 Advantages and disadvantages of different types of planning tools

   

Added on  2021-01-02

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MANAGEMENTACCOUNTING
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 2............................................................................................................................................1P4 Advantages and disadvantages of different types of planning tools.....................................1M3 Applications of planning tools for preparing and forecasting of budgets............................3P5 Management accounting system to respond to financial problems.......................................3M4 Management accounting leads organizations to achieve sustainable success......................5D3 Evaluation of planning tools for responding to financial issues...........................................5CONCLUSION................................................................................................................................6REFERENCES ...............................................................................................................................7
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INTRODUCTIONManagement accounting is a professional that looks at the events that happen in andaround the world a business while considering the needs of the business. With the help of thesedata, management perform all its functions like as preparation, coordinate, staffing, leading andcontrolling (Brierley, and Gwilliam, 2017). In this report select the company is BCMconstruction that is related to medium scale construction. This study relate to the information about different types of planning tool and identify ofadvantages and disadvantages of budgets. Using different type planning tools for preparing andforecasting budgets, company adopting management accounting system for solving financialproblems. TASK 2P4 Advantages and disadvantages of different types of planning toolsBudgetary control is a system that are using for comparison to existent income withformed income. This system mention to that managers how well apply of cost and operations forparticular accounting period. Budgets are using as planning tools regarding to management process, that helps toestimate of costs, incomes and resources for a particular period. It is reflecting to reading offuture financial goals and conditions. Fixed budgets – A fixed budget is a budget that is based on financial plan on the site of sellingparticular amounts of goods during a time period. It does not change and flex when sales or someother activity increases or decreases (Burkert, and et.al., 2014). Advantages – It is primary tool for measure the success of small business both in long term andshort term periods. It also helps to support the entire business to financially accountable whenmaking large and small expenditures.Disadvantage- The biggest disadvantages of this budget is lack of flexibility because mostlycompanies using highly inevitable sales volume and costs. On broad level companies companiesexperience fluctuated year to year. Flexible budgets – A flexible budget mainly using for revenues and expenses are produced forcurrent production as a estimation and baselines. It is more useful for company because1
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