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Report Of Imda Tech Ltd - Management Accounting & Its Importance

   

Added on  2020-02-03

14 Pages3916 Words44 Views
Business DevelopmentFinanceHigher Education
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Management Accounting1
Report Of Imda Tech Ltd - Management Accounting & Its Importance_1

Table of ContentsINTRODUCTION................................................................................................................................4TASK 1.................................................................................................................................................41.1 Management Accounting definition and difference between management account and financial account..............................................................................................................................4TASK 2.................................................................................................................................................62.1 Absorptions Costing...................................................................................................................62.2 Marginal costing .......................................................................................................................7TASK 3 ................................................................................................................................................83.1 Different type of Budget and their advantages and disadvantages............................................83.2 Process of preparing budget.....................................................................................................103.3 Pricing Strategies.....................................................................................................................10TASK 4...............................................................................................................................................114.1 Balance Score card and performance measure (financial and Non financial).........................114.2 Improvement in financial governance and development of strategies....................................12CONCLUSION..................................................................................................................................12References..........................................................................................................................................142
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INTRODUCTIONManagement accounting is accounting techniques used to identifying, measuring, analysing,interpreting and communicating information for achieving organisational goals (Shiller, R. J. 2013).It is process of analysing interpretation an presentation of accounting information collected with thehelp of various techniques like cost accounting, auditing, budgeting and in order to assist and helpin taking managerial function and help management to take decisions and making plans and policies(Sofat, R. &Hiro, P. 2011). So this project is regarding Management accounting reporting ImdaTech Ltd (UK). So in this report function of management accounting, its importance and decisionmaking tool for department manager, different type of management accounting system like costaccounting system, inventory management system, Job costing system and price optimisationsystem are explained in study. Further income statement is made for Imda tech Ltd. usingAbsorption costing and marginal costing method and different types of budget and their advantagesand disadvantages are explained. The process of preparing budget and pricing strategies, companiesbalance score card and its effectiveness and development of effective strategies are made.TASK 11.1 Management Accounting definition and difference between management account and financial account.Management Accounting is process of interpreting analysing, presenting of accounts relatedinformation and collected with help of Cost and financial Accounting in order to help managementin taking decision (Rubin, D. B., 2014), making policies and help in day to day operations ofrunning business. As per Institute of management accounting "Management accounting isprofessions that involve partnership and helps management in decision making, and provideexpertise financial reporting and control to assess management in formulation and implementationof organisational strategies". Difference between management and financial accounting:Management accounting gives information to its employees within its internal managementorganisation while Financial accounting is made for general outsiders like shareholders andinvestors.Law is required in Financial accounting (FA) while Management accounting (MA) notrequire law. Special formats and standard are set for FA by IAS (International AccountingStandard) in Europe.FA cover whole organisation while MA may cover departmental function related to cost4
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