BTEC BUSINESS UNIT: BTEC BUSINESS UNIT: BTEC BUSINESS UNIT: BTEC BUSINESS UNIT

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PROGRAM TITLE: BTEC BUSINESS
UNIT TITLE: MANAGEMENT ACCOUNTING
ASSIGNMENT NUMBER: 1
ASSIGNMENT NAME: 1
SUBMISSION DATE: February 2nd 2021
DATE RECEIVED: February 11th 2021
TUTORIAL LECTURER: Ms. Pham Huong Thuy
WORD COUNT: 4456 words
STUDENT NAME: Hoang Thi Phuong Thao
STUDENT ID: BKC1909
MOBILE NUMBER: ([phone]

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TABLE OF CONTENT
I. PREFACE .............................................................................................................................. 5
II. COMPANY INTRODUCTION ........................................................................................ 5
III. MANAGEMENT ACCOUNTING DEFINITIONS AND EXPLANATIONS ............. 6
1. Management accounting definitions ................................................................................. 6
2. Explanations the role and principles of management accounting ................................. 6
a. The role of management accounting ................................................................................. 6
b. The principles of management accounting ....................................................................... 7
3. Explanations the distinction between management and financial accounting ............. 9
IV. MANAGEMENT ACCOUNTING SYSTEMS................................................................ 1
1. Job - costing system ............................................................................................................ 1
a. Essntial requirements for Job - costing system ................................................................. 1
b. The benefits are of a Job - costing systems....................................................................... 3
2. Inventory management system .......................................................................................... 4
a. Essential requirements for Inventory management systems ............................................. 4
b. The benefits of a Inventory management systems ............................................................ 5
V. MANAGEMENT ACCOUNTING REPORTING .............................................................. 5
1. Cost of production reports ................................................................................................. 5
a. Methods of making Cost of production reports ................................................................ 5
b. How to use Unilever's Cost production report .................................................................. 6
2. Sales report .......................................................................................................................... 8
a. Methods of making Sales report ....................................................................................... 8
b. How to use Unilever's Sales report ................................................................................... 8
VI. FINANCIAL STATEMENTS AND FUNDAMENTAL RATIOS ANALYSIS ........... 9
1. Balance Sheet .................................................................................................................... 10
2. Cash Flow Statement ........................................................................................................ 12

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3. Income Statement ............................................................................................................. 13
VII. CONCLUSION ................................................................................................................. 16
VIII. REFERENCE LIST ...................................................................................................... 17

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I. PREFACE
In the current fierce competition among technology companies in the world, it is a very big
challenge for businesses to stand firm in the market. And it can be said that management
accounting plays a very important role in making budget and cost plans to help the company spend
reasonably in the process of development and compete with strong competitors.
Therefore, to help people understand more about the management accounting and the content of
the accounting relativity, the accounting department of Unilever has released this report.
The report will consist of five main parts. The opening is to introduce Unilever with basic
information. Next is the definition and the roles and principles of management accounting along
with explanations of the differences between management and financial accounting. The
management accounting systems Unilever applies will be clearly analyzed in Part IV. In addition,
the report also provides management accounting reports that the company frequently uses. Part VI
of the report will analyze and evaluate the financial statements and fundamental ratios of Unilever
in 2019.
II. COMPANY INTRODUCTION
Picture 1: Logo of Unilever by CafeBiz
Unilever is a multinational company founded on September 2nd 1929 with the combination of
Lever Brothers (the soap maker in the UK) and Margarine Unilever (a Dutch food butter
manufacturer). Currently, Unilever has two headquarters in the UK city of London and the Dutch
city of Rotterdam.

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Unilever is a world-famous brand in the field of manufacturing fast-moving consumer products,
including personal and home hygiene products, food, tea and tea drinks, and products sold in more
than 190 countries. Unilever's food, home and personal care brand is trusted by consumers around
the world - the average consumer buys 170 billion packages of Unilever products each year.
Unilever's typical brands are widely consumed and accepted worldwide such as Lipton, Knorr,
Cornetto, Omo, Lux, Vim, Lifebuoy, Dove, Close-Up, Sunsilk, Clear, Pond's, Hazeline, Vaseline,
etcs. With sales of over millions of dollars per brand, it is proving that Unilever is one of the most
successful companies in the world in the consumer healthcare business.
III. MANAGEMENT ACCOUNTING DEFINITIONS AND EXPLANATIONS
1. Management accounting definitions
Accounting is the process of identifying, measuring and communicating financial information
about an entity to permit informed judgements and decisions by users of the information. (Pauline
Weetman, 2006)
Management accounting is the process of preparing reports about business operations that help
managers make short-term and long-term decisions. It helps a business pursue its goals by
identifying, measuring, analyzing, interpreting and communicating information to managers.
(Freshbooks, nd)
Management accounting is the process of identification, measurement, accumulation, analysis,
preparation, interpretation, and communication of information that assists executives in fulfilling
organizational objectives. (iEduNote, nd)
2. Explanations the role and principles of management accounting
a. The role of management accounting
The role of management accounting include:
❖ Make-or-Buy decision
Management accounting insights on cost and production availability are deciding factors in
purchasing choices. Data from managerial accounting empower decision-making at both an
operational and strategic level. (Freshbooks, nd)
❖ Forecasting cash flows