(pdf) Management Accounting Sample Assignment
Added on 2021-01-02
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MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P3. Cost Accounting techniques of management accounting ...............................................1M2 Application of range of management accounting techniques..........................................4D2 Interpretation of financial data regarding the business Activities ..................................4TASK 2............................................................................................................................................4P4 Advantages and Disadvantages of different types of planning tools used for BudgetaryControl....................................................................................................................................4M3 Analysation of different planning tools for preparing and forecasting the budgets........8P5 Comparison of Organisations adapting management accounting systems to resolvefinancial issues........................................................................................................................8M4 Management accounting helpful in solving the financial problems.............................11D3 Planning tools are helpful in solving the financial problems of organisation .............11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONManagement Accounting refers to the managerial accounting and also known as costaccounting, it the process of Identifying, measuring, analysing, interpreting and communicatinginformation to managers for the achieve the organisational goals. Although, the financialaccounting plays dominant role in functioning of management accounting as on the basis offinancial accounting managers are able to make the business operations decisions, meansfinancial accounting provides the financial information to managers in order to perform themanagement accounting functions. Management accounting comprises with all fields ofaccounting with a motive to informing management of business operation metrics. Although it isrelated with the costs of products or services acquired by the organisation also budgets are alsodecided under the management accounting plans and prepares the organisational performancereports. (Amidu, Effah and Abor, 2011)This study pertain the information about the information analyses of Income statementby marginal and absorption costing method, of AIRDRI Ltd. (U.K) an air dryer manufacturingcompany of United Kingdom management accounting system and techniques or costing methodswith appropriate financial statement in order to present systematic analysation. Not only this,advantages and disadvantages of budgets, planning tools and their applications and an attempt tosolve the financial problems with appropriate planning tools.TASK 1P3. Cost Accounting techniques of management accounting Costing: The term 'costing' also known as cost accountancy, it is the process ofquantifying the costs and it is a technique to assist the management in establishing severalbudgets, standards and ascertain the cost of production of any product or services in the businessorganisation. The cost accounting is practised at broad level in big manufacturing industrieswhich produces in thousands of products in very large quantity and spends lot of money onlabour, material and on other overheads. The recording and analysation of these incurred cost inorder to generate the income are comes in context of cost accounting as after the evaluation thecalculation of profit generated from these activities is made. Although the cost accounting orcosting involves some techniques of costing.(Carlsson-Wall, Kraus and Lind, 2015)1
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