Management Accounting

Running Head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author Note

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MANAGEMENT ACCOUNTING
Executive Summary:
The purpose of this assignment is to provide clear understanding about the management
accounting through explanation of different management techniques and their impact on the
decision making process of management. This assignment also evaluates the performance of the
company from the data obtained from recent financial statement of British Tobacco Company.

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MANAGEMENT ACCOUNTING
Table of Contents
1. Introduction:................................................................................................................................4
2. Management Accounting and its importance:.............................................................................4
2.1 Management Accounting:......................................................................................................4
2.2 Importance of Management Accounting...............................................................................5
3. Management accounting techniques available to BAT group:....................................................7
3.1 Marginal costing:...................................................................................................................7
3.2 Ratio analysis:........................................................................................................................7
3.3 Standard costing:...................................................................................................................7
3.4 Activity Based Costing (ABC):.............................................................................................8
3.5 Cash flow statement:..............................................................................................................8
4. Application of Different Management Techniques:....................................................................8
4.1 Application of ABC Costing:................................................................................................8
4.2 Application of Ratios:............................................................................................................9
5. Interpretation of Results and Recommendations:......................................................................10
5.2 Interpretation of financial ratios:.........................................................................................10
5.2.1 Debt-Equity Ratio:........................................................................................................10
5.2.2 Profitability Ratio:........................................................................................................10
5.2 Interpretation of Product Profitability:................................................................................10
6. Conclusion:................................................................................................................................10
7. References:................................................................................................................................12

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MANAGEMENT ACCOUNTING