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Tools and Techniques Management Accounting

   

Added on  2020-12-24

12 Pages2819 Words237 Views
Management Accounting
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1: Calculation of cost by using various methods......................................................................11.2 Range of management techniques.........................................................................................21.3: Analysis of data collected from income statement...............................................................3TASK 2............................................................................................................................................32.1: Advantage and disadvantage of using planning tools...........................................................32.2: Analysis of the expenses for July and August......................................................................42.3: Objective and cash budget....................................................................................................5TASK 3............................................................................................................................................63.1: Use of accounting system to determine financial issues.......................................................63.2: Evaluating financial issues faced by UCK furniture............................................................63.3: Analysis of planning tools that is used in management accounting.....................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTIONManagement accounting is known as the process of analysing, recording, reporting usefulfinancial information that help internal manager to make useful decision and improve theperformance and productivity of company (Amoako, 2013). With the help of managementaccounting manager of an organisation are able to figure out early problem, that may reducestheir performance and market share. UCK furniture is one of the leading furniture company inU.K that use to manufacture and supply beautiful interior and exterior furnitures to customer. In this report uses of different costing method that are useful in determining the actual netprofit for company is discussed. Along with advantages and disadvantage of various planningtool is shown that aid in controlling budgets. Comparison with other company in regarding to useof accounting system. TASK 11.1: Calculation of cost by using various methods. Cost is defined as the value that is use by buyer in order to make purchase of somethingoffer for sales by seller. It is basically the aspects that is reasoned while the production ofdifferent goods and services within company. Costing is consider to be a reliable procedure ofcalculating total cost of UCK furniture in investing in manufacture process with the actualcurrent present cost of capital. So it is stated that cost id directly or indirectly related toproduction of useful goods. There are different types of costing system that are connected withUKC furniture business operations and are discussed below:Marginal costing: This system is used to calculate the additional cost involved bycompany in order to produce an extra unit of output. It is basically known as incremental costthat consist of specific variable while calculating total contribution per unit during an accountingyear. In general, marginal cost are based on production expenses that are direct of variable suchas labour material and equipment. It is taken into report for taking useful future decision aspossibilities of mistakes are less in this method. Absorption costing: This costing system help to calculate cost that is applicable inproducing useful product within an organisation. It consist of both variable and fixed cost as it iscommonly known as full costing system (Absorption costing, 2018.). There are variousimportance of using absorption costing system but at the same time it affect the net profitability1
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