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Management Accounting - Toshiba Asignment

   

Added on  2021-02-21

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ManagementAccounting
Management Accounting - Toshiba Asignment_1

Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Budgetary control, its purpose and different forms of it with their advantages anddisadvantages...............................................................................................................................1QUESTION 2...................................................................................................................................3Analysis of the way in which management accountants use different planning tools.................3QUESTION 3...................................................................................................................................4Explanation of the way in which management accountants will use KPI's.................................4QUESTION 4...................................................................................................................................4Explanation and analysis of the role of management accounting................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
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INTRODUCTIONManagement accounting is a technique which is used by managers of different businessentities for the purpose of monitoring, controlling, evaluating and analysing all the processes sothat all the actions which may result negatively could be identified (Arnaboldi, Lapsley andSteccolini, 2015). The organisation which is selected for this report is Toshiba which is amultinational conglomerate company and executing business all around the world. The linemanager of the enterprise asked the management accountant to formulate a report which coversdetailed information of budgetary control, its functions, forms etc. Along with this, differentplanning tools, KPI's and role of management accounting in identifying and preventing financialirregularities are also covered under this report.QUESTION 1Budgetary control, its purpose and different forms of it with their advantages and disadvantagesBudgetary control: It can be defined as the process which is used by managers of theorganisations such as Toshiba for the purpose of setting finance and performance relatedobjectives. With the help of it management accountant of Toshiba focuses on it to compareactual results with budgeted figures so that actual status of business could be analysed. Purpose of budgetary control: Main purpose of budgetary control is to set strategicfinancial goals for the business so that performance could be enhanced with attainment of them(Campanale and Cinquini, 2016).Different forms of budgetary control: There are various forms of budgetary controlwhich are focused by management accountant and utilised by management accounting systemsof Toshiba. All of them are discussed below:Cash flow budgeting: It is a technique which is used by management accountants ofcompanies such as Toshiba in order to estimate all the receipts and payments which have takenplace in monetary terms. It is formulated on monthly, half yearly and yearly basis.Advantages: While using this technique the organisation can ignore debts and analyseactual funds. It also guides to identify potential deficit which may take place in future bymonitoring current situation.Disadvantages: Due to this technique the power of spending gets limited as it specifiesall the cash payments. It also affect ability to create a credit profile (Gichaaga, 2014).1
Management Accounting - Toshiba Asignment_3

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