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Management and Financial Accounting Assignment

   

Added on  2020-01-07

10 Pages2743 Words125 Views
Management Accounting

Table of ContentsINTRODUCTION......................................................................................................................3TASK.........................................................................................................................................3Difference between management and financial accounting...................................................3Classification of cost..............................................................................................................4Discussing the seven types of operational budget along with their benefits..........................6Analyzing the use of standard costing as a decision making tool..........................................7CONCLUSION..........................................................................................................................8REFERENCES.........................................................................................................................10

INTRODUCTIONManagement accounting is the process of identifying, measuring, analyzing andinterpreting the information of all the departments to higher authority. In this, managers atdifferent level provide higher management with the cost records and sheets which in turnhelps them in making suitable decisions. Moreover, such information helps company inmaking competent strategic and policy framework for the near future. In this regard, thepresent report will describe the extent to which management and financial accounting arehighly differs from each other. Further, it will also shed light on the concept of cost, budgetand standard costing.TASKDifference between management and financial accounting Basis of differenceManagement accountingFinancial accountingMeaning Managerial accounting ishighly concerned withproviding effectual base tothe managers for decisionmaking (Kaplan andAtkinson, 2015). In this way,it assists in makingappropriate plan whichensures optimum use of theresources.This field of accountinginvolves in the preparation offinancial statements with theaim to provide fair view tothe stakeholders aboutcompany’s performance. Objectives Aim of such accounting is toprovide useful information tothe managers for planning aswell as setting the goals. Onthe basis of this aspect,managers can easily evaluatethe performance of therespective department.Objective of it is to disclosethe information about thecompany’s financial healthand performance at the endof accounting year or aspecific date.UsersInformation served by thedepartment of managementaccounting is used by theinternal parties such asmanagers and employees.Both internal (management,employees etc.) and external(investors, suppliers,government, banks etc)makes use of the financialinformation for the purposeof decision making.RequirementsThere are no legalrequirements for the firm topreparemanagerialCompanies have legalobligations to prepare andpresent the financial report

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