Presenting the Significance of Management Accounting

Added on -2020-02-14

| 18 pages| 3919 words| 39 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 4 of 18 pages

Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3a....................................................................................................................................................31. Stating the meaning of management accounting an distinguishing it from financialaccounting....................................................................................................................................32. Presenting the significance of management accounting in decision making..........................4b. Explaining the different types of management accounting system that is used for reportingpurpose.........................................................................................................................................5TASK 2............................................................................................................................................5Preparing statements by considering the absorption and marginal costing system.....................5TASK 3............................................................................................................................................7a. Types of budget and their benefits as well as drawbacks........................................................7b. Stating the process of drafting budget.....................................................................................9c. Presenting pricing strategies that can be used by Imda Tech................................................10TASK 4..........................................................................................................................................11Assessing the manner in which financial problems can be identified or responded.................11Presenting the use of financial governance in the development of effectual strategies............13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTION In the recent times, business entities can attain only success they make optimum use offinancial resources. Moreover, now customers prefer to purchase products or services from theretailer who charges suitable prices. In this, tools and techniques of management accounting ishighly significant which in turn helps in making control on cost level and thereby facilitatesmaximization of profitability aspect. This report is based on Imda Tech which is involved inmanufacturing mobile phone chargers. Hence, report will describe and present the extent towhich management accounting concepts help in making suitable decisions. Besides this, it willalso shed light on the manner in which budgeting tools help in making control on overspendingsignificantly. Further, report will also highly the manner in which financial problems can beresolved by business entity by applying the concepts of management accounting. TASK 1 a.1. Stating the meaning of management accounting an distinguishing it from financial accountingManagement accounting is the most important field of finance which aid in managerialdecision making to a great extent. In this, manager or concerned authority undertakes accountingprovisions for deriving suitable information for decision making purpose. The main objectives ofmanager behind undertaking management accounting tool is to performance control and profitmaximization. It lays high level of emphasis on preparing managerial reports on periodical basiswhich in turn gives input for the formulation of strategies and policies (Hoque, 2001). Moreover,without having appropriate input it is not possible for managers to make suitable short term orday to day decision. By considering the significance level Imda Tech focuses on employing theconcepts of management accounting. However, there are some differences which take placebetween management and financial accounting in the following manner:Meaning: Management accounting tools make focus on providing highly accurateinformation to the managers which in turn help them in the formulation of suitablepolicies. Thus, such field of finance is highly concerned with ensuring smooth

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Premium

$45

Q&A Library Access

Chat support

12

Document Unlocks

4

Answer Unlocks

Students who viewed this