Management Accounting task

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Management Accounting
Table of ContentsINTRODUCTION........................................................................................................................................3TASK 1.........................................................................................................................................................3a) Definition of management accounting and there comparison with financial accounting and alsoexplain the management accounting as a decision-making tools...........................................................3b) Types of management accounting system..........................................................................................7TASK 2.........................................................................................................................................................71. Absorption Costing..............................................................................................................................72. Marginal costing..................................................................................................................................8TASK 3.......................................................................................................................................................10a) Types of budget and there advantages/ dis-advantage......................................................................10b) Process of preparing budget..............................................................................................................11c) Pricing strategies................................................................................................................................12TASK 4.......................................................................................................................................................12(A) Balance Score card and use of balance score card to identify and responding to financial problems...............................................................................................................................................................121. Use of Balance score card in identifying and responding to financial problems.............................122. Use of balance score card in order to improve the financial governance..........................................13CONCLUSION..........................................................................................................................................13REFERENCES...........................................................................................................................................15
INTRODUCTIONManagement accounting is a process which includes all such information which help themanagers to accomplish there goals. It include all the information and decision which is related to thepolicy making process, procedures etc. that help the manager to all the funds in an organisation.Management process includes the managerial functions such as planning, staffing, controlling andmonitoring process that manage all the activity in an organisation. By the help of managementaccounting is also make smoothing the activity, so that management accounting is essential for thebusiness. Inn this research report IMDA Tech (UK) Limited is taken, which is a producer of the differentmobile chargers. There main function is to provide specific charger of the mobile and telephone and alsocreate different gadgets for the UK retail outlets.This report describes the role of management accounting by explaining there concept in anorganisation.It also gives the importance of management accounting by comparing with the fiscalaccountancy.It also describes the role of management accounting as a decision making tool in anorganisation. In this report different budget are describes and it also represent the advantage and dis-advantage of such budget and pricing strategies which affect the organisation's operational activity. Byusing the marginal cost and absorption method, it also helps to analysis the cost and net yield of theIMDA Tech (UK) Ltd. This report also highlight the financial problems and describes the role oforganisation to resolve such problems effectively(Vakalfotis, Ballantine and Wall, 2013.).TASK 1a) Definition of management accounting and there comparison with financial accounting and alsoexplain the management accounting as a decision-making toolsTo: Imda Limited, Line ManagerFrom: Management Accounting OfficerDate: 20 May 2017Subject:Management accountancy significant and its deviation from the financial accountingManagement accounting includes various managerial functions such as planning, staffing,organising, controlling and monitoring the activity within the organisation. In this way all this strategiesmake the business operations effectively and smoothly. Management accounting also supplies theinformation, and facts which are reliable so that it can help the effective work for the organisation.Difference between Financial and Management AccountingBasis for ComparisonFinancial AccountingManagement AccountingMeaningFiscal accountancy is a processIn management accounting, it
which consider all the financialactivity such as preparing thefinancial statements such asprofit and loss a/c, balancesheet , cash flow, ratio analysisetc.includes all the managerialfunctions such as planning,staffing, controlling andmotivating the workers in anorganisation, so that it can helpthe organisation to work withthere great efferents oraccomplish there goals in future.For example: Such informationwhich is helpful to decisionmaking, analysis the cash flowby using appropriate data etc.Necessary in organisationFor every business organisation,financial accounting is usefuland essential. For example:Imda limited also require tomaintain there financialstatement to analysis there actualposition at the end of thefinancial year.But management accounting isnot necessary for everyorganisation. As per the need ofthe manger or activity,management accounting can bedone. For example: If Imdalimited's managers wanted toknow the data and informationrelated to the resources, in thiscase they can maintain themanagement accounting so thatthey can analysis the position ofresources in an organisation.Objectives/MotivesThe main motive to makefinancial accounting to get theactual financial position of thecompany, so that it will help toall different kind of interestedparties. For example: If theshareholders of Imda limitedThis main objective is to makean effective managerial controlin an organisation. For example:If Imda Ltd manger want toanalysis the records, thanmanagers can use information foreffective business planning.
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