logo

Report On Concept Of Management Accounting | Imda Ltd

   

Added on  2020-02-17

17 Pages5480 Words32 Views
Management Accounting
Report On Concept Of Management Accounting | Imda Ltd_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................4P1 Explanation of management accounting................................................................................4P2 Methods of management accounting ....................................................................................6TASK 2 ..........................................................................................................................................8P3 Calculation of cost as per marginal and absorption costing methods....................................8TASK 3..........................................................................................................................................11P4 Budgetary-control planning tool's advantages and disadvantages in Imda Ltd' s case........11TASK 4..........................................................................................................................................13P5 Comparison regarding adopting of management accounting system..................................13CONCLUSION..............................................................................................................................15REFERENCES .............................................................................................................................15
Report On Concept Of Management Accounting | Imda Ltd_2
INTRODUCTIONManagement accounting used by every business so as to have growth and development ofthe business which will assist in achieving success. This tool is used by the firm in regards withidentification of the information, calculation of it, communication and review in order to achievetargets which are made by firm. It is termed by another name which is called cost accounting.There is difference between financial and management accounting, which is like support is givenby management accounting to the managers of the firm for taking important decisions (Otley, D.,2016). On the other hand financial accounting is helpful for outsiders to provide information sothat independent plans and decisions can be made by them according to the demand. This reportis also on the concept of management accounting, and is on the case of Imda Ltd., which is amanufacturing company. This report will analyse the broad concepts and meaning ofmanagement accounting as there is a coverage of finance, accounting and management with thesupport of advanced techniques to achieve objectives and targets. In order to have propermanagement accounting in an organisation, high level expertise are needed who will help invarious plans related to funds and resources. TASK 1P1 Explanation of management accountingManagement accounting is termed as the provision of information which helps toimplement it in an organisation and is in relation with the Imda's accounting managers. It assistmanagers to take appropriate decisions so that they can perform several duties and activities in afirm in an effective manner, which will also support in handling control and administrationfunctions. This information is related with the financial information of the firm to assistmanagers and financial accountants. Information related to management accounting is higlyconfidential and is used by the concerned person only. Accounts give suggestions to themanagers regarding financial actions in a firm (Zoni, Dossi and Morelli, 2012). This informationis related with the funds and finance of the firm which needs to managed properly in order toattain needed resources which will be helpful to perform various activities in present as well as infuture. It also helps in planning, controlling, organising and maintaining various activities thatare carried out in a firm for the needs and satisfaction of employees and customers.
Report On Concept Of Management Accounting | Imda Ltd_3
Accounting supports managers and the directors in order to have necessary decisions byproviding appropriate knowledge and information regarding financial position and performanceof Imda Ltd. It helps to analyse the cost calculation which can be determined on the basis offirm's operations. Officers of the management accounting aims to provide information of financewhich is in relation with different departments like sales, marketing and management. It is usedto find link in the sales and profit. Mangers will also be able to make internal decisions whichwill be helpful for the growth of the firm. Management accounting is the kind of methodologyused to make management reports which helps to assess necessary money and resources requiredto develop project, and also for making long term and short term decisions (Taticchi, Tonelli andCagnazzo, 2010). There are different various kinds of management accounting system whichsupports in the goodwill of the company. Requirement of management accounting is there forvarious purposes and such requirements can be explained as follows: Management accounting as per traditional basis: It is most used and a necessarymanagement accounting which is used by many firms. It is used in the firm to focus on tecost regarding production and job order. This method is very supporting for the Imda Ltdas with the help of it firm will be able to assess cost of resources, production and labours.As the mentioned entity is the manufacturing company, so it makes use of the job ordercosting for its major projects. This technique is helpful for tracing resources which areavailable. Lean management accounting system: This is the type of management accountingsystem which is used by Imda Ltd. In order to perform change regarding administration,management, control, measurement and accounting which supports in the thinking aswell as lean manufacturing (Seaman and Williams, 2011). It is revolutionary as mainconcentration is not just on cost, but it is on the making of strategies which are needed forthe control of management cost.Cost reduction strategies can be made with the help oflean management accounting system which assist personnel manager to take necessarydecisions. Difference between management and financial accountingAreasManagement accountingFinancial accountingProficiency It gives report regarding issueand their solution.It gives reportregarding profitability.
Report On Concept Of Management Accounting | Imda Ltd_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting in Imda tech Limited : Assignment
|18
|4078
|40

IMDA Tech Ltd. 3 TASK 13 P1 Function of the Management Accounting InTRODUCTION OF THE MANAGEMENT ACCOUNTING INTRODUCTION
|11
|3319
|314

Report Imda Tech (UK) - Management Accounting
|17
|5572
|30

Management Accounting and its Types of Systems
|13
|3516
|306

MANAGEMENT ACCOUNTING INTRODUCTION
|18
|4262
|472

Project on Management Accounting Systems
|16
|4173
|36