Management Accounting Assignment | UCK Furniture

Management Accounting
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Table of Contents
INTRODUCTION............................................................................................................... 3
PPT content:............................................................................................................ 3
1.1 Calculate costs using appropriate techniques of cost analysis to prepare an
income statement using marginal and absorption costs.......................................14
1.2 Accurately apply a range of management accounting techniques and produce
a financial reporting document............................................................................. 18
1.3 Data interpretation by using costing methods which is used in an organization.
.............................................................................................................................. 18
TASK 2.......................................................................................................................... 19
2.1: Merits and demerit of using planning tools....................................................19
2.2 Calculation of total cost................................................................................... 20
2.3 Explain the purpose of budget and prepare a cash budget with the given
information for coming month............................................................................... 21
TASK 3.......................................................................................................................... 22
3: Comparison with other organisation.................................................................22
3.2 Analysis of the accounting tools......................................................................23
3.3: Evaluation of the financial tools.....................................................................23
CONCLUSION................................................................................................................ 24
REFERENCES................................................................................................................. 25
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INTRODUCTION
Management accounting is one of the crucial part of an organization that can assist in
recording of various financial transaction that are done during the period of time. In a
competitive environment, the management of an organization is searching for some effective
management system that can helpful them to control and manage their financial and non-
financial transactions in a systematic or effective manner. The management reports provide
important information to the whole departments of an organization and also helpful them in
preparing various reports. Evaluation of various kind of planning tools those are used to control
budgets are evaluated effectively under this report.
PPT content:
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In this report, UCK Furniture is taken which specially deals in furniture industry. This report
is divided into two parts. First part covers various management accounting systems in order to
make reports.
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In simplest way accounting means recording of financial transactions related to a
business. It is the process of summarizing, analysing and reporting these transactions to
regulators and tax entities. system that guides management actions, motivates behaviour and
supports and creates the cultural values necessary to achieve an organisation's strategic, tactical
and operating objectives. Therefore, it must require for UCK Furniture Ltd. To form
management accounting as it helps in formulating policies, decision making and the day to day
operations of enterprises. Management accounting is very helpful in taking decisions like,
structured, semi structured, strategic or non-strategic decisions
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Two types of costing which can be used by organisation to estimate accurate cost:
Actual Cost:
It is said to be actual expenses that are made to acquire an asset which consists of
supplier invoiced expenditure included with the cost to deliver and test assets. The actual amount
of money a physician or their services provider or supplier charges for a certain medical product.
This is one of the cost of an asset when it is initially recorded in the financial statement as a fixed
asset. Like, an actual cost can be more or less than the predicated cost. A car shop is an
estimation that can repairs will cost $700 but at the same time the actual cost can varies to 800.
Standard Cost:
It is an estimation of cost of performing an operation or producing a product or services
under the normal situation. These are used as target costs and are formed from the historical data
evaluation or from time and motion analysis. They are almost varying from the actual cost
because every situation has their share of unpredictable aspects those are related with the normal
cost. The cost accountant periodically determine variance that can break out various caused by
some of the factors like labour rate changes and cost of material.
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