Management Accounting Techniques

This assignment delves into the world of management accounting techniques. It examines their importance in aiding effective decision-making within organizations. The content includes a review of various techniques like Cost Volume Profit (CVP) analysis and environmental management accounting, supported by case studies that illustrate their practical application.

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explanation of management accounting and essential requirements of different type of
management accounting system ............................................................................................3
M1 Evaluation the benefits of management accounting system and it's application in the
organisation............................................................................................................................5
P2 Explanation of different methods used for management accounting reporting ...............6
D1 Critical evaluation of management accounting system and management accounting
reporting is integrated with in the organisational process......................................................8
TASK 2 ...........................................................................................................................................8
P3 Calculation costs using appropriate techniques of cost analysis to prepare an income
statements of marginal and absorption costing......................................................................8
M2 Accurately application of a range of management accounting techniques and produce
appropriate financial reporting documents...........................................................................11
D2 Financial report of the organisation with accuracy and proper interpretation of data related
to business activities ............................................................................................................11
TASK 3..........................................................................................................................................11
P4 Explanation of the advantages and disadvantages of different types of planing tools used
for budgetary control............................................................................................................11
M 3 Use of various planning tools.......................................................................................14
D3 Evaluation of planning tools for accounting respond appropriately to solving financial
problems to lead organisation to sustainable success...........................................................15
P5 & M4 How can Unicorn Grocery can utilize management accounting methods to manage
financial stability..................................................................................................................15
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

REPORT
From: Management Accounting
To : General Manager
Subject: To write a report to GM covering management accounting and management accounting
system together with different costings techniques and reporting to enable the organisation to
implement them.
INTRODUCTION
Use of managerial theories and models of financial accounting in a business model which
can increase their productivity and as well as their output by which they can attain targets
effectively (Kaplan and Atkinson, 2015). Financial methods can help to a company to attain a
financial stability in their trade and financial activities, which can increase their grip on the
market. Managerial theories can improve the management grip on the employees. These
techniques and methods are having the potential to provide stability in the market by gaining
revenues. Planning is an important factor to run a business successfully so organisation have to
make proper budget to allocate their financial resources according to expenditures. The below
presented report is based on the Unicorn Grocery which are having total turnover under
£500,000 and less than 50 employees are working in the organisation. It is a grocery store which
is working in the retail sector and it's owners are managing employees in the organisation. In this
report, it is having details on the different type of management accounting methods and system
which can use by the Unicorn Grocery. Calculation is an essential part for the owners to with
using of appropriate techniques to analyse the cost of products, owners have to be focused on the
effective cost management. Organisation can use different types of planning tools which can help
them in to budgetary control (Macintosh and Quattrone, 2010). At the last this report is having
content on the adaption of management accounting system to resolve their financial problems
and issues.
TASK 1
P1 Explanation of management accounting and essential requirements of different type of
management accounting system
Management accounting is related to the use of financial data in to the management
theories which can improve the managerial decisions which are take by the management.

Mixture of the management principles and financial accounting can help to the Unicorn Grocery
to improve the management and as well as the financial decisions. It can help to the organisation
to make a proper allocation of the funds, as they are having limited funds and scope because they
are a small business enterprise so it is essential for them to manage their business ( Simons,
2013). As an organisation haves a different teams which supports to the company to attain their
business objectives by their combine efforts. These financial data helps to the management to
analyse that which team is performing better according to the expenditure and investment on
them. It can help to the management and leaders analyse the potentials of the team which are
working in the organisation and as well as to know what kind of improvements and changes they
have to made in that team to manage expenditures according to the budgets (Ward, 2012). It can
helps to the company to enhance their annual profits and revenues. It can increase the
effectiveness of the teams which are working in the organisations which can helps to the
managers and leaders to increase the profitability. Financial management is based on the
budgeting which emphasise on the allocation of the financial resources in the teams which are
working in the company. As the Unicorn Grocery is a small scale business entity, they are having
limited scope to generate revenues and as well as they are having limited resources of finance so
it is essential for them to keep their expenditures and business activities as per the budget.
Budgeting methods are having the potentials for estimate and forecast the future business
investment and operations which can be profitable for them. By this management can easily
estimate their business needs and as well as input cost which can increase their profits after a
time of period (Renz, 2016). Business decisions which have to be taken by the owners in the
Unicorn Grocery can be effective by using management accounting and budgeting system.
Management accounting is divided in to different types which helps to the organisation to
select a suitable type for them. These management accounting systems are having their different
types of requirement which are described under here;
Traditional accounting techniques: It is related to the traditional method of accounting which is
based on the cost which is associated with the productivity of the different teams which are
working in the organisation. Expenses which are related to the team have to be calculated on the
reliable basis. It is used by the business entities which are having small structure in the
organisation and as well as which has less financial generators. It has a requirement job order

costing which can be a base for the organisation to make an estimate for their future projects
which are having a need of huge investment.
Inventory management: This is an accounting method which is used in to managing stock in the
organisation. This management accounting techniques supports in maintaining an appropriate
level which can help to accomplish demands of customers. This can help to the grocery store to
identify the needs of store in their different products.
Cost Accounting: It is an accounting system which works on basic cost of products and expenses
which helps to the organisation to determine the actual cost of the product which is consider in
the pricing. It helps to measure the inputs to results which can help to make an analysis of the
process of the organisation.
Price optimisation – Small firms like Unicorn grocery face problem in deciding right
price of an item. Sometime they keep price of a product so high that customers refuse to buy it
while other time they keep price too low that company fail to earn decent amount of profit. This
management accounting system help in ascertaining a price which can provide best revenue to
cited company and customers also accept the price tag of a product.
M1 Evaluation the benefits of management accounting system and it's application in the
organisation
Some of points are here which describes and evaluate the benefits of the management
accounting:
Reduce expenses: Management accounting has it's focus on those factors which are taking an
extra cost according to their financial results, so it reduce these factors from the business and
improve profitability in the organisation. But it creates a limitation on the teams which are
having potential to perform better but not getting charged by the management. It will help to the
Unicorn Grocery to identify to those points which are consuming a huge cost and also it will help
to the company to analyse how they can reduce operational overhead in their store which can
help to them to improve their profits.
Business Decisions: Management accounting system emphasis on the decision making process
which is an essential factor and having impact on the whole organisation. It encourage to use
accounting data which is related on a particular issue to make a decision on it, it creates a
liability on the managers to analyse their decisions on the financial aspects and take an effective

decision accordingly (Scapens and Bromwich, 2010). But on the level of managerial decision it
can decrease the faith and trust of the employees which are working in the organisation. By this
company can take better decisions regarding to their operational overheads which can help to
them to make a better change in their organisational process.
Management accounting system can be implement by the management by using a master
budget which can help to the company to manage their annual expenses. Accounts department
has to use cost accounting, inventory management which can help to them to minimise their
expenses.
The utilization of management tools in the cited firm assists in framing best strategies
that is capable of acquiring organisation setted objectives. Such tools aids the corporation in
effectively running the operations which are contributing in attaining the objectives of enterprise.
The main aim of management accounting in the cited firm is to assist in competitive decision
making by gathering, processing and conveying information that aids in management plan,
control and evaluation of business procedures and strategies of company. Some of the other use
of management accounting are listed below:
 Help in forecasting the future : It deals in making decisions of future like should the firm
invest in more equipment.
 Forecasting cash flow : It states various cash flows decisions like how much corporation
should invest in future and will the turnover increase or decrease in upcoming days.
Increase revenue – Techniques like price optimisation provide great assistance to
company because it help in ascertaining best price. Company can earn high revenue and at the
same time grab a decent amount of share in the market.
P2 Explanation of different methods used for management accounting reporting
Management accounting reports are based on the performance of the organisation as per
their financial targets and as well as it has it's focus on the performance of the teams which are
working in the organisation. Mostly it is used by the small scale organisation which are working
with the limited financial scope and sources. It is made by the management accounts officers in
the accounting periods and as per the needs of the organisation. It produced by the company to
show organisational performance and total operational cost. It helps to determine the extra cost
of the company which can help to them minimise it. So as it is related to the related to the small

scale enterprises, Unicorn Grocery have to adopt it to increase the profitability of the company.
Report which is made by the accounts officers are depends on the type of projects and time-
sensitivity of the information. It can be made on weekly, monthly and quarterly basis if the
owners and managers demands (Cinquini and Tenucci, 2010). It has different methods of use
which provides a benefit to the management and owner to increase their financial visions;
Financial planing: It can used by the owners of the Unicorn Grocery to make a financial plan
for their future projects as the company is working for the limited profits, but in the future if the
owners wants to increase their criteria to improve their annual business revenues so it can use by
them to make a financial plan. It can helps to the owners and managers to find out those financial
sources which are having potential to fulfil their financial needs for long time and as well as to
find out those resources which is profitable for them (Fullerton, Kennedy and Widener, 2013).
By this company can find out those financial resource which puts less financial obligations on
them. The financial management accounting reports contains all the financial data which is based
on a particular duration of time so which helps to analyse them which factors are making a down
fall in the profits.
Analysis of financial statement: It is essential for the management and owner to analyse the
financial statements which helps to them to make better decision according to the needs and
demands of the company. It can used by the Unicorn Grocery to increase their financial profits
by analysing their statement, it helps to them to analyse that which particular is taking a high
consumption of the finance as per the outputs.
Analysis of the fund flows: It is related to the financial funds of the business entity which can
decrease and increase the productivity of the business (Qian, Burritt and Monroe, 2011). It helps
to the managers and accounting officers to analyse about the sources where they are getting
funds to execute their business activities and as well as it can helps to the company to analyse
those factors on which they are expanding their funds.
Ratio Analysis: It is based on the mathematical formulas to analyse the impacts on a particular
change on a particular things. It can be used by the Unicorn Grocery to make an analysis on the
points which are affecting on the business. This type of analysis can helps to the company to
manage their business activities as per the standard ratio. It can be used by the managers to
identify the capabilities of the organisation according to their debts.

Cash Flow analysis: Flow of cash on those activities which are making by the organisation, as
unicorn Grocery is a small scale organisation, it can used by the management accountant to
increases the cash flow form the output sources (Luft and Shields, 2010). It can divide in to the
three parts which are operating activity, investing activity and finance activity.
Job cost reports: It is containing relevant cost to the sales in the Unicorn Grocery, as company
is working in the grocery retail sector so this job cost report can help to them to identify people
involved in the process of selling to measure the actual cost of sales.
Inventory management: It is process which can help to the company to manage storage of
products in their store. It can help to them to keep a profitable quantity of each type of product in
the stock which can help to them to accomplish the demands of people.
Performance Reports: Employees are significant in the company and it is essential for the
Unicorn Grocery to manage their employees in appropriate manner which can help to them to
enhance their performance. This is method which supports to keep each employee's performance
to make a comparison with their targets. By this employee can analyse weak employees and
they can work on them.
Operating budget report: It is report to measure the revenues and expenses of the company
against to estimated budget. It is concluded report which is based on several types of budget like;
marketing, financial, human resource and master budget. Management can measure their
performance against it.
D1 Critical evaluation of management accounting system and management accounting reporting
is integrated with in the organisational process
Management accounting system and management accounting reporting helps to the
management and accounts of the Unicorn Grocery to analyse those factors which are reducing
their performance but regular use of the management accounting reporting decrease it's
consistency to perform in the competitive market.
TASK 2
P3 Calculation costs using appropriate techniques of cost analysis to prepare an income
statements of marginal and absorption costing
Income statement according Absorption costing

Working notes:
Absorption costing
Working 1: Calculate full production cost
Direct material £6
Direct labour £5
Variable cost £2
Fixed cost £3
Total £16
Working 2: calculate value of inventory and production
Opening inventory Production Closing inventory
0 700*19 = £13300 100*16 = £1600
Working 3: under/ over absorbed fixed production overhead
Actual fixed production: £2100
Fixed overhead: £2000
Total £100(over absorbed)
Administration Cost: In this budgeted cost is £800 and Actual cost is £700
Selling cost: In this budgeted cost is £400 and Actual cost is £600
Net profit using absorption costing £ £
Sales
(-) Cost of Sales:
Opening stock
Manufacturing
Closing stock
(Under)/ Over absorbed fixed prod.
O/h
Gross Profit
0
11200
(1600)
21000
(9600)
11400

Less Expenses
Variable sales expenditure
Fixed administration expenses
Fixed selling expenditure
Over absorption
Net Profit
600
700
600
(100) (1800)
9600
Working 1: Calculate variable production cost £
Direct material 6
Direct labour 5
Variable production O/h 3
Variable production cost 14
Working 2: Calculate value of inventory and production
Opening inventory Production Closing inventory
0 700*14 = 9800 100*14 = 1400
Net profit using marginal costing £ £
Sales value
Less: Variable costs
Opening stock
Manufacturing
Closing stock
Contribution
Less Fixed costs
Variable Production expenses
Administration cost expenditure
Selling cost
0
9100
(1300)
2000
1300
21000
(7800)
13200

Net Profit
600 3900
9300
Unicorn grocery has to adopt absorption costing which can help to them to earn more
profits £9600. as compare it to marginal costing it will provide just £9300 which directly shows
that company will face a loss of £300 by using this.
M2 Accurately application of a range of management accounting techniques and produce
appropriate financial reporting documents
Planning and budgeting, project decision making and performance measurement are
some techniques which can be used by they Unicorn Grocery. Planning and budgeting
techniques can helps to the company to estimate the future projects of the company (Garrison
and et. al., 2010). It can increase the company vision and value of projects. Project decision
making techniques can increase the value of the decisions. Management accounting systems like
planning tools provide various information and data, it can be collected from internal or external
resources. They provide great assistance in financial reporting by providing both expected and
actual figures.
There are various management accounting techniques that are utilised by the venture so
that they can make satisfactory financial reporting documents. Some of the management
accounting techniques used by the cited company are financial accounting, past cost accounting,
investigation of financial statements, standard costing and so on.
D2 Financial report of the organisation with accuracy and proper interpretation of data related to
business activities
Financial reports are having data related to the organisation's profits and losses which
describes the growth and downfall of the company. The financial report is provide a detail
financial position of the company in their competitive market by using of their resources
(Weißenberger and Angelkort, 2011). The Unicorn Grocery is having net profit of £ 7500 as per
the marginal costing method and £ 10800 in contribution. According to the absorption costing
method they are having £ 6700 profit.

TASK 3
P4 Explanation of the advantages and disadvantages of different types of planing tools used for
budgetary control
Budgetary control can be defined as the method by which managers can optimize the use
of budget or capital of the organization in order to accomplish the set goals. it is a process where
decision maker set some standards related to performance and the cost to be incurred for such
performance to keep check at the end of the year (Lukka and Modell, 2010). It is basically
monitoring and controlling the cost in a given financial year by comparing the returns and cost
incurred with the set standards. Planning tools that are used for control are variance analysis,
responsibility accounting, adjustment of funds, zero base budgeting.
Cash flow budget – This budget is made for finding the right amount of cash that should
be kept in the organisation. Its main advantages is that a company can find the debtors who are
not paying their dues in right time. They can tighten their credit giving policy in order to reduce
bad debts. This budget also assist in making provision relating to unexpected expenditure. It also
has many disadvantages, most of the managers raise question about accuracy of this budget
because they believe that there is no possible way expecting amount of money which company
will need in future.
Master budget – It covers all the areas of areas and department of an organisation.
Planning is done for every task that enterprise is going to perform in forthcoming time. It main
advantage is that it reduce confusion between manager of various departments by synchronising
their work. Its main demerit is that it is very expensive so small firm cannot use this planning
tool.
Variance Analysis : In this technique , firstly budgets are forecasted for each department
of an organization in the beginning of a year, every department has to function as per the set
standards throughout the year and in the last all cash in flows and outflows are compared. The
difference between the actual and estimated is called variance.
Advantages:
 This technique help managers to have full control and monitor over every expense that
are incurred and if any variance found, necessary actions can be taken for rectifying it.
 It also helps in reducing cost as it creates cognitive state in the mind of people of
organization.

 It helps in identifying the department responsible for the variance and action is taken
accordingly (Baldvinsdottir, Mitchell and Nørreklit, 2010).
Disadvantages:
 The disadvantage of this technique is that managers sometimes to avoid of being
questioned for the difference in results, they wrongly estimate the figures or overestimate
them. There are some costs that are occurred which are consumed by whole organization and
can not be classified or distribute to departments such as power cost.
Responsibility Accounting: This is also a budgetary control technique. In this technique,
departments are created like cost, profit and investment. All employees are divided as per their
job profile and their responsibilities are also fixed in terms of the targets they have to achieve in
a year. Performance of each and every employee is recorded and in last it us compared with the
set performance and they are held accountable for the difference.
Advantages
 The main benefit of this technique is it helps in taking decision regarding performance
appraisal of employees, whether to promote them or demote them (Zimmerman and
Yahya-Zadeh, 2011).
 With the help of this technique, contribution of every employee can be calculated in
achieving the goals of the organization. It also helps the employees feel motivated as they know what they have to achieve and
what are the incentives.
Disadvantages
 It also has some disadvantage as it builds pressure on employees to reach their target and
so for being in race and to win it they compete with other and do not maintain healthy
relations. Sometimes it is very difficult to motivate employees towards organizational goal and not
personal goal (Kaplan and Atkinson, 2015).
Adjustment of funds: In this technique, a pre planning is done to adjust funds in
departments,whenever necessary. Sometimes one department have access money and another
department needs funds for expansion or taking new projects.
Advantages

 The main advantage of the technique is to reduce the misuse of funds as it forecast the
appropriate amount for each department in the beginning itself. This technique helps the
organization in case of emergencies and lack of funds.
Disadvantages The main disadvantage of the technique is that it boost the dispute between the managers
of different departments over allocation of resources. Departments use to blame each
other for the variation in achieving the targets.
Zero Base Budgeting: This is the most popular technique used in today's scenario for budgetary
control (Macintosh and Quattrone, 2010). Every year a new budget is prepared for every
department for the whole year keeping in mind the base as zero that is assuming the previous
year nil. All the expenses that are estimated must be justified for a given year.
Advantages
 It helps in efficiently assigning the resources to each department.
 It helps in identifying all the expenses and the best manner to do to lower the cost.
 It also helps in identifying unproductive activities of the organization (Simons, 2013). As it requires involvement of employees from every department, it motivate them and
give a sense of being a part of the organization.
Disadvantages
 It is very time consuming as every year it requires proper time of managers to rethink and
restructure every single expense.
 It also requires managers from every department and involvement of many employees
for making the entire budget again.
 Managers may face problem in explaining each and every expense as it is not always
possible.
M 3 Use of various planning tools
Planning tools are used utilised for the purpose of achieving objectives of corporation. It
is completely based on the forecasting of future operations. In present days, every venture is
attempting to enforce different planning tools that are utilised in order to attain its pre setted
objectives. The corporation is trying to gain its pre determined objectives effectively by taking
the aid of effectual planning. Organisation should also make their budgets in good manner.
Planning tools can be utilised by company for predicting events of future and take actions as per

that. If any kind of divergence happens, owners of business should remove such variances
effectively. By executing such activities, Unicorn grocery is capable of taking competitive
advantage over their challengers. Planning tools find the risks that company can face in
upcoming time, they make assist in making proper plans in order to attaining long term goals. It
company has some backup plan that this merit pour confidence in the employees and they try to
give their best. This result in better organisational productivity.
D3 Evaluation of planning tools for accounting respond appropriately to solving financial
problems to lead organisation to sustainable success
Planning tools such as variance analysis, zero base budgeting, funds adjustment and
responsibility accounting helps to resolve many financial problems of the organization (Ward,
2012.). Whenever an organization face a problem each technique responds or help in their own
way. If a company is not earning profits as per estimation, zero base budgeting will help to cut
down unnecessary activities whereas if in a mid of year any department facing shortage of funds,
adjustment technique will respond in relocating the funds or adjust it with another department.
Responsibility accounting tool has its own role, it helps in having efficient man power which can
help an organisation in earning higher profits and thus reducing financial problems that could
occur in future. There are some other techniques such capital budgeting, working capital
management and so on. Working capital management helps in managing capital require for day
to day operations, capital budgeting determines whether the proposed investment organization
undertaking is profitable or not or whether an organization will recover the cash flow for the
same and thus reducing the risk of financial problems that can occur due to wrong investment in
wrong projects.
P5 & M4 How can Unicorn Grocery can utilize management accounting methods to manage
financial stability
Management Accounting can be defined as a process where financial information is
identified, analysed and interpreted so that managers can take some major decisions regarding
how to achieve organizational goals in an efficient manner. It has various tools and techniques
that help the organization to lead towards sustainable growth. Some of the very important tools
are as follows :
Financial Statement Analysis: Profit and loss account and balance sheet are the most important
financial statements for a company. These can be prepared at any period of time to analyse the

actual growth of a company. Comparative financial statements, common size statements and
different type of ratios are used in this technique to evaluate and provide solutions to various
financial problems. Ratios help in knowing the liquidity position, company's position to pay its
short term and long term debts, it also indicates the overall profitability of the organization which
help the organization for sustainable success in upcoming years. They also provide useful
information of organization related to long term competitive performance, market conditions
which will definitely help the organization to make certain policies for sustainable success.
Cost Accounting: Cost accounting determines the cost to the company at each level and different
process that is department wise, branch wise and process wise. Afterwards, these are compared
with already set standards and actions are taken according if differences are found
(Weißenberger and Angelkort, 2011). This techniques helps in determining the profitable and
non profitable activities at each process and so helps in cutting the unwanted cost to the company
which in result helps in solving the financial problems at each process. It also help the
organization to sustain all those activities which are profitable in nature and leading it in a
direction of growth.
Marginal Costing: It constitutes of basically two further techniques that are break Even Analysis
and Cost Volume Profit ratio. It is basically determining marginal costs that will be charged to
the cost of unit produced. It helps in knowing the relationship between cost, its price and the
volume. It also helps in more emphasizing on more important and controllable aspects such as
variable cost. It measures the actual cost of resources that are used to produce goods and services
and so actions can be taken to reduce a variable cost and thus moving towards sustainable
growth.
Budgetary control: budgetary control techniques helps an organization in estimating future
financial needs in a more appropriate way than other techniques and reducing the risk of any
major financial problem in an year. This technique helps in monitoring and controlling the
financial performances of an organization and direct it towards a desired direction and achieving
goals accordingly. It provides the information that is required to attain the efficiency and quality
of the activities performed in an organization which thus also helps in sustainable success of it.
Historical cost accounting: This is a technique where expenses are recorded after they are
actually incurred. In such accounting assets values at the rate at which they were bought every
year and will change in the books irrespective of appreciation of value of that asset (Garrison and

et. al., 2010). This system helps the organization in leaving no room for manipulating the facts as
the data is supported by invoice of that asset or receipt and voucher. This is cheaper way of
accounting in comparison of other techniques.
Management Reporting: Management accounting manager analyse all the facts and information
thoroughly and prepare a report which contains all the necessary data that will help top
management to tackle all the financial problems the organization is facing and making decisions
accordingly. The job is to provide a report in a very systematic manner which answer all the
queries of the top management. It contain comparative analysis reports, company balance sheets,
which determines its liquidity position. In short it depicts whether an organization can lead a
sustainable success or not in an upcoming future.
Statistical Techniques: There are so many statistical techniques that help an organization in
removing financial problems. By applying statistical principles. Manager can correctly estimate
the risk involved with any investment such as mutual funds, shares, in diversification and so on
was appropriate or not (Luft and Shields, 201). In simple terms, a manager should use these
techniques before investment to evaluate the risk and its uncertainty, whether is is justifiable or
not to invest. Because ignorance can lead to heavy losses and shutdown of an organization to.
This technique also ensures the quality as it provide the ways to measures and control production
processes which in result lead to minimize variations and errors and so ensures smooth flow
throughout the process.
Following are some management accounting system that can cited organisation is solving their
financial problems:
KPI: By using this tool an organisation can determine the difference between their actual target
and their set of objectives. This technique help in measuring performance of various divisions
and reveal the area where their committing mistakes. SMART targets can is necessary for
resolving financial problems. Specific targets relating to expenditure of money can reduce cost of
business. Progress in a project should be measure so company can find the difference between
their set targets and actual results. It is important to set achievable goals because it will remove
extra financial burden on the company. Time board targets can put necessary pressure on
employee and their performance can improve when they feel essential pressure. This may assist
company by earning extra profit.

Bench marking: In this process some standards are set by management and the use it for
comparing their actual performance with pre determined targets. This will play crucial role in
providing stability to finance division of cited company as they will have a clear standard which
they have to follow at any cost. Their are some standards which are present in industry. By
following these standards cited firm can set solve major financial problems as their performance
will not go down below an essential level.
Financial governance: Unicorn grocery is a facing issue relating to liquid assets. This problem
can be solved by using financial tools which can tell them the correct area where they should
invest their available resources. This will also provide them in maintaining balance between
interest of various stakeholders, it will also raise their goodwill in their industry.
CONCLUSION
The above presented report described about the facts and figurers of the unicorn Grocery which
wants to apply management accounting on them. It can be helpful for them to increase their
business revenues and as well as it can help to the company to manage their financial and non
financial resources. Use of budgeting methods can increase the company's effectiveness to
increase their profits and to take more effective decision which can help them to use financial
resources in a more better way. Financial management can in increases their productivity and
utilisation of the resources as well as it can helps to the management to use their employees and
team to be more profitable.

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