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Management Accounting Assignment - Solved

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Added on  2020-10-05

Management Accounting Assignment - Solved

   Added on 2020-10-05

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Management Accounting Assignment - Solved_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 3.................................................................................................................................................1P 4 explaining different types of planning tools used for the budgetary control........................1LO 4.................................................................................................................................................5P5 Adoption of Management accounting system as to respond to the financial problemsStarbucks.....................................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
Management Accounting Assignment - Solved_2
INTRODUCTIONManagement accounting can be termed as a synonym of management and accounting thatconcerns with that process of management in which they analyse and summarises financialinformation of an organisation (Bromwich and Scapens, 2016). They prepare financial reportsfor the purpose of using them in their decision making process. The present study includes areport that provides information about various planning tools for budgetary control system withadvantages and disadvantage and application in the business organisation as well. Further, thereport also shows various management accounting methods implicated by accountingprofessionals for performing their managerial activities as to enable an organisation in mitigatingfinancial obstacles and help it in attaining success as well. LO 3P 4 explaining different types of planning tools used for the budgetary controlBudget:A budget is a form of report, includes information about the various activities of a firmforecasted by its professionals. In other words, in can also be said that a budget is a financial planprepared by accounting practitioner for the purpose of forecasting various financial activitieslike purchase, sale, cost, production, etc. of a business organisation. In addition, at last a budgetis also prepared by the managers by combining all the budgets (Jia and et.al., 2016). Thiscombined budget is termed as the master budget of the company. For the purpose of forecasting the each activity of the business, managers can preparedifferent types of budgets. Some major types are as under:Fixed budget: It is that kind of budget which doesn’t fluctuate with the change in theamount of sale, purchase or any other activities. It is also termed as the static budget. Inthe fixed budget, managers can measure short term as well as long term budgets.Advantagesdisadvantage Preparation of fixed budgets is the mostappropriate for the purpose of budgeting andadjusting the seasonal expenses (There arepros and cons to being less flexible, 2018).The major disadvantage of this budget is that itdoes not take into account uncertainties of thebusiness. In this order, it may provide negativeresults. It enables professional in ascertaining thepriorities of the business operations. This budget fails to analyse extra cost that isneeded to be incur by the business in order to1
Management Accounting Assignment - Solved_3

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