Analysis of Management Accounting INTRODUCTION 1 TASK 11 P.1 Accounting Functions and Reporting System

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1 Accounting Functions ..........................................................................................................1
P.2 Types of accounting system..................................................................................................2
M.1 Benefits of Management accounting...................................................................................3
D.1 Critical evaluation about management accounting and reporting system............................4
TASK 2............................................................................................................................................4
P.3 Costing method used by company........................................................................................4
M.2 Techniques for financial reporting......................................................................................7
D.2 Data interpretation of company performances.....................................................................7
TASK 3 ...........................................................................................................................................7
P.4 Budget preparation................................................................................................................7
M.3 Analysis of planning and application of budget..................................................................9
D.3 Evaluate planning tool for overcome financial issues..........................................................9
TASK 4............................................................................................................................................9
P.5 Balance scorecard and its respond to financial issues..........................................................9
M.4 Analysed accounting problem..........................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
The project assignment is about management accounting. Under which various
accounting function are explain and how they are beneficial for the IMDA Tech Ltd. The
company is major producer of mobile ,telephone charger for retail outlets in UK (Kaplan and
Atkinson, 2015). As a manger of this company I have tried to overcome the financial issues that
are arises in company and provide valuable recommendation to make strong decision regarding
stability of department.
For this many cost accounting system and calculation to solve problem of net profit by
using marginal and absorption costing method. To improve financial impact, we have prepared
budgets with its advantages and disadvantages to the company. Based on our analysis we have
given so many findings and recommendation that the company may follow to improve its
positions in comping future. The report is based on entire accounting system of IMDA Tech Ltd
as to improve the performance of the company.
TASK 1
P.1 Accounting Functions
Management accounting: It refers to the process of collecting, sourcing,
communicating, analysing and evaluating monetary and non-monetary transactions or
information to return and create value for the company (Ward, 2012). It combines finance,
accounting and management systems with the business skills and techniques that will help
organisation grow. The accountants use this information of all kinds, not only financial to lead
business strategies and desired from sustainable success.
Comparison between financial and management accounting.
Financial Accounting Management Accounting
1. The report are prepared those are based on
previous performance which is in line to
requirement.
2. It produce required financial data to use by
other departments within the organisation like
for examples, Department manager.
1.The information collected like surplus, cash
flows and outstanding liabilities to prepare
trend report which help in taking important
decision.
2. It combines both monetary and no-monetary
information to brought complete image of the
1

3. It mainly focused on outside like
shareholders.
4. Financial accounting is based on certain law
that has to be followed by every manager.
5. Under this information is related to various
data collection from financial transaction done
by the company.
6. Every financial accounting has set format
that has to be followed by manger while
preparing statements.
company position.
3. It provide information as internal level to the
people.
4. While management accounting doesn't need
law because these are generally excepted.
5. It helps organisation to plan its aims and
objectives.
6. The demand of management that if they
need a kind of format then they use it
otherwise not fixed format followed.
Importance of Management accounting
 Determine Aim: on the basis of information available with management they determine
its goal and tries to search route through which they can reached to its goals (Burritt,
Schaltegger and Zvezdov, 2011).
 Help in formulation of plan: The manager must prepare plan which should identified
present and future stability and existence of the company.
 East to take financial judgement: Before taking any important decision regarding
financial impact. We must choose right plan which can help to decide whether company
may get most out from this plan or polices.
 Measurement of performance: There are various standard costing which enable the
organisation to measure performance. It also enables to find out derivations among
standard and actual costing.
 Increase efficiency of business: Management accounting helps to maximise the efficiency
of the company. The target is set in advance and achievements are taken as important
techniques to measure its efficiency of the company performance.
P.2 Types of accounting system
To make appropriate decision regarding maximising the financial stability and managing
accounting system the company may use various types of accounting system to analysed their
financial position. The IMDA Tech Ltd has using cost accounting, and Price optimising system,
in their business to manage its retail outlet in UK (Parker, 2012). It helps to identified various
2