Managerial Operations and Finance

Running Head: MANAGERIAL OPERATIONS AND FINANCE
MANAGERIAL OPERATIONS AND FINANCE
Name of the Student
Name of the University
Author Note

1MANAGERIAL OPERATIONS AND FINANCE
Table of Contents
Answer to Question 1.................................................................................................................2
Management accounting role in Management Process..........................................................2
Major Differences between Management Accounting and Financial Accounting................2
Techniques of different Models of Costing used in Investment decisions............................4
Answer to Question 2.................................................................................................................5
Techniques of Capital Investment Appraisal in making Investment Decisions....................5
Answer to Question 3.................................................................................................................6
Role of Business Plan and Budget in Operational Management...........................................6
Areas of Improvement............................................................................................................8
Answer to Question 4.................................................................................................................9
Usefulness of Balanced Scorecard Approach........................................................................9
Balance Scorecard for Cucumber Limited.............................................................................9
Reference..................................................................................................................................11

2MANAGERIAL OPERATIONS AND FINANCE
Answer to Question 1
Management accounting role in Management Process
The management accountant has the role of performing the series of the task for
ensuring the financial security of the company, handing of all the essential matters of the
finance and therefore helping in driving the overall management of the business and their
strategy (Fullerton, Kennedy and Widener 2014). Management accounting helps the
managers in making goods decisions. The information that is provided by the managerial
accounting is about the overall costs of the goods and services. The actual performance is
compared with the planned performances that facilitate the important decisions, which are
critical for the success of the organizations (Otley 2016).
For the determinations of the success and status of the company, management
accountant are the key figures. Depending upon the level of the experiences, type of the
industry and time of the year, management accountant are engaged in delivering following
tasks for the enhancement of the managerial performance and processes:
 Budgeting
 Aiding in the strategic planning
 Handling taxes
 Managing the assets for helping to determine the compensation as well as packages of
benefits.
Major Differences between Management Accounting and Financial Accounting
In comparison with the financial accounting that provides the financial accounting
that is primarily required for the external use, managerial accounting provides the
information, which is for external use. Financial accounting provides the information’s by
reporting on the organization’s financial activities, needed by the creditors and investors

3MANAGERIAL OPERATIONS AND FINANCE
(Booth 2018). Most of the managerial decisions are required for getting the more detailed
information as compare to that of the external financial reports such as some organizations
show the single amount of the inventory on their balance sheet. However, managers generally
require detailed information about the each cost of the several hundred products (Maas,
Schaltegger and Crutzen 2016).
Financial Accounting Managerial Accounting
Users The users of the financial
accounting are generally the
external users such as creditors,
financial analysts and the
shareholders.
The users of the managerial
accounting are generally the
internal users such as usually
managers.
Accounting
Standard or
Principle
Financial accounting generally
follows either GAAP or IFRS.
Managerial accounting does
not follows any such
requirement of the accounting
principles.
Time Period It uses mostly historical data. It may or may not use the
estimates for future based on
the historical data for
budgeting purposes or making
decisions.
Presentations
of Details
The financial accounting
presents the report that contains
In the managerial accounting,
detailed data about the product