Report on Functions Management and Accounting
Added on 2020-06-04
13 Pages4028 Words92 Views
Management and Accounting
Table of ContentsINTRODUCTION...........................................................................................................................2TASK 1............................................................................................................................................2P1(a) Report on functions of management of management........................................................2P2(b) Different types of management accounting......................................................................4TASK 2............................................................................................................................................5P3 Calculation of absorption and marginal costing methods......................................................5P3 (i) Income statement under marginal costing........................................................................6(ii) Income statement of absorption costing ...............................................................................6TASK 3............................................................................................................................................7P4 Report on planning tools........................................................................................................7TASK 4..........................................................................................................................................10P5 Balance score card approach................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................121
INTRODUCTIONAccounting and management are two different things but both have a similar and equalcontribution in operating business functions (Hopwood, Unerman and Fries, 2010). Managementaccounting is used to maintain and keep records, informations and accounts in a particularsystem. Accounting system provides a method to keep these records in such a way that all theinformations could get easily and on time. These information and records helps in makingstrategies, forecasting plans and making budgets. There are certain standards, format and rulesare made to maintain these records. These records contains financial statements of companies,income statements, final accounts, balance sheets, trial balance etc. all these records shows thefinancial position of an organisation (Håkansson, Kraus and Lind eds., 2010). This report isprepared in respect of Imda Tech (UK). Its Finance director wants financial and accountingreports to make important decisions and strategies for businesses plans and growth model. TASK 1P1(a) Report on functions of management of management There is a report is prepared to explain the meaning of management accounting and thefunctions of management accounting. In second phase of report there is importance ofaccounting information defined.From : Management accounting ManagerTo : Director of Finance department of Imda TechSub : Management accounting and financial accountingIt is informed to finance department and all sub divisions that this report is formed to explainmeaning of management accounting and its about its functions. 1. Meaning of Management and financial accounting and DifferenceManagement accounting This is a tools which is used to maintain records and data in professional manner. Anaccounting system contains rules, accounting standards, procedures and specific formats. As perInstitute of Management Accounts (IMA): it is a professional and formal way to presentinformation regarding figures and data for a specific duration. This tool is used in decisionmaking, making budgets and in performance management. There are different measures andcertified institutions are established which provide a wide rage of accounting and management2
courses and provide expertise in presenting financial and accounting reporting to managers anddirectors. There are different functions of management accounting asPlanningThis is first step to form an management accounting system in organisation. In thisfunctions an organisation's short term and long term objectives are decided. Best plans andstrategies are sorted out to attain these objectives. Organising Business operations remain divide in multiple parts and divisions organising help incoordinate and manage these departments. This step define roles and responsibilities ofmanagers and leaders in an organisation.ControllingThis function helps in monitoring, analysing and evaluating actions and performance ofemployees in organisation. It provides path to control and maintain discipline in departments.Decision making Decision making is one of the important element which remain responsible in providingbest plans and strategies of growth. this is the function which help in making business plans andmodels of business. Financial accountingThis accounting tool is used in keeping financial information as per set procedures and standardof management and institutions. Financial accounts as income statements, profit and lossaccounts, final representations and reports. This informations helps both internal departmentand outsiders as shareholders, stakeholder, banks, finance institutions, investor groups,government agencies and business owners. Generally Accepted Accounting Principles (GAAP)has made standards and rules of maintaining financial records for different type of business andorganisations. Apart from it there are International Financial Reporting Standards (IFRS) aremade which are issued by International Accounting Standards Board (IASB). It providesguidelines which are used at national and international level in management and accounting.Difference Between Financial and management accounting .Management accounting system is useful to managers, directors and departments how everfinancial accounting is useful to external people as shareholders, stakeholders, financiers,3
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