Management Accounting: Techniques, Benefits, and Budgetary Control

Management
Accounting

Introduction.....................................................................................................................................3
P1.....................................................................................................................................................3
Management Accounting.................................................................................................................3
It has many benefits such as :......................................................................................................3
P2.....................................................................................................................................................4
Different methods used to prepare management accounting reports are as follows :..............4
M1....................................................................................................................................................5
Benefits of management accounting system in context to organisation:...................................5
P3.....................................................................................................................................................6
Cost Cards of November and December month..........................................................................6
Absorption costing......................................................................................................................6
Marginal costing..........................................................................................................................7
Flexible budget of November and December............................................................................7
M2....................................................................................................................................................8
Management accounting techniques used to do analysis of financial information:...................8
P4.....................................................................................................................................................9
Advantages and disadvantages of planning tools used for budgetary control purposes :.........9
M3..................................................................................................................................................11
Application of planning tools in preparing and forecasting budgets:........................................11
P5...................................................................................................................................................11
Businesses are using management accounting for solving financial issues of the organisation :
...................................................................................................................................................11
M4..................................................................................................................................................13
How management accounting leads to the sustainable success of the organisation...............13
Conclusion......................................................................................................................................13
References :...................................................................................................................................15

Introduction
This report focuses on the management accounting and how it helps the management
to make long term and short term decisions. It is the systematic process of collecting,
identifying, summarizing, analysing and communicating the information with the users. The
main objective behind preparing these financial reports is to help the top level management in
planning future corporate strategies. Moreover, it helps to prepare the plan and control the
operations of the concern. By using the management accounting techniques actual
performance is compared with the standard one to figure out the variations and provide the
best services to the customers.
P1
Management Accounting
It is the process of preparing financial reports that would help the management to make
decisions for long term purposes. In this businesses financial transactions are recorded,
classified, summarised, analysed and communicated to help the managers in proper utilization
of resources and plan future corporate strategies. It has various benefits right from taking
important decisions to asset management.(Aslanertik and Yardımcı, 2019 ) Moreover, this
assists in revenue management, cash management, turnover management and so on. This helps
the management in planning the activities of the operations in order to make profits.
It has many benefits such as :
• Planning the operational activities – In management accounting all the monetary and
non monetary information is presented in front of top level management which helps
them to forecast future conditions of the business and do the in depth analysis of the
financial position of the organisation performance. Therefore, it assists managers to
make decisions as per the reports provided by them.
• Taking important decisions – Since, management accounting tools are used to figure
out the actual position of the business concern as well as it provides financial data in the