Evaluating Management Process and Planning Tools

The assignment content evaluates the management process and planning tools in a company, considering various references from books, journals, and online sources. The references include studies and articles on management accounting, control systems, decision making, strategy implementation, and organizational change. The content highlights the importance of management accounting in facilitating effective management processes and planning tools, with a focus on organizational and sociological approaches. It also explores issues related to theory and practice in management accounting, as well as validation techniques in interpretive research.

MANAGEMENT ACCOUNTING

Table of Contents
INTRODUCTION:..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Function of management accounting ....................................................................................3
M1:benefits of management accounting systems.......................................................................5
D1 process of the management accounting systems .................................................................5
P2 Type of management accounting system and its use to each and every department in the
context of Imda tech....................................................................................................................5
Task 2...............................................................................................................................................7
P3 Preparation of income statement of Imda tech using marginal and absorption costing .......7
M2 Techniques and reconcile the profit......................................................................................9
D2 data of the business activities................................................................................................9
TASK 3............................................................................................................................................9
P4 Planning tool with the discussion on budget and pricing strategy in the context of Imda
tech limited..................................................................................................................................9
M3 preparing and forecasting budgets......................................................................................12
D3 planning tools of the accounting in financial problem........................................................13
TASK 4..........................................................................................................................................13
P5 Balance scorecard and its implementation to improve the performance ............................13
M4 financial problems, management accounting ....................................................................14
D4 planning tools for accounting .............................................................................................15
CONCLUSION:.............................................................................................................................15
REFERENCES:.............................................................................................................................17

INTRODUCTION:
The management accounting help the manager to making the best decision and
developing the alternative resources of the financial accounting. The management accounting
create the types of the cost accounting. Management also determine the many process in this
organisation. This process create the planning, organising, staffing and controlling process,
decision making, controlling performance, financial analysis and iterpretation. The accounting is
the system of the company. This system create the company best budget and data. The Imda tech
company dealing the mobile telephone and other product. This accounting is the best method of
the financial statement and create the pricing strategies, develop the best budget. This is the
provision of the financial and non financial statement of the decision making. This is also create
the company objectives and goals. The Imda Tech company manager create the best financial
report and formulating the pricing strategy. This accounting consists the many scope including
the strategies, performance and risk management (Zimmerman and Yahya-Zadeh , 2011). This
accounting define the many skill and knowledge in the presentation the company financial
budget.
TASK 1
P1 Function of management accounting
The function of the management accounting provide the help in preparing the data of the
company and create the best decision. This function also define the decision making process.
Management accounting developing the many function related to the planning, organising,
staffing and controlling. This function creating the alternative budget and cost of the production.
The function of the management accounting create the best function in the organisation. This
function developing the best decision making process in the organisation. The function also
develop the best plan and innovative ideas in the organisation.
Planing function: This process create the best function of the accounting management. The
planing determine the best budget, alternative sources, best product of the company. This is
prepare the person development process in this organisation. This is the first stage of the
accounting function. This function provide the alternative sources and alternative plan related
the company profile. This is also develop the best strategies and techniques in the
company(Macintosh and Quattrone , 2010).

Organising function : This process define the integration, balance and coordinating activities.
This process of the management accounting are best process. This process define the many steps
of the company including the fixing the company objectives. The Imda tech company identify
the many activities to achieving the organisational objectives. The next step create the grouping
activity and provide the responsibility of the each employees. This process create the authority of
the employees and determine the relationship between the superiors and subordinates. This
process is create the possibility of the large number of the people and develop the best
environment.
Staffing process: This function define the many process in this organisation. The process of the
strafing create comparison of the employees and selection of the employees. This is also
developing the person personality in this organisation. The management accounting determine
the budget process and pricing strategies. This process of the management accounting system
create the human resources management planing. This function provide the best sources and best
plan(Simons , 2013).
Controlling function: This function determine the many process of the control. This process
create the standers and measuring the performance of the standers. This also creating the standers
and innovative plan in the organisation. This function of the management accounting reducing
the risk factor and uncertainty of the risk. This function reducing the variance of the company.
The financial and management accounting create the final report in the whole process of the
accounting function.
Management accounting Financial accounting
It is prepared the internal employees and
stakeholder of the business.
This accounting maintain the external
audiences of the company and organisation.
It is not compulsory. This accounting is compulsory.
This accounting provide the monetary and non
monetary information.
This accounting provide the monetary
information.
This accounting consists the planing and
decision making process(Baldvinsdottir, G.,
Mitchell and Nørreklit , 2010).
This accounting provide the financial
information to the company outsiders.
There are availability of the internal There are availability of the internal and

management. external management.
The management accounting develop the many function of the company and financial
accounting create the financial data of the company. This is also prepared the company financial
position in this organisation.
M1:benefits of management accounting systems
Benefits of the management accounting system determine the many benefits of the
accounting. The accounting system improving the company cash flow. This is create the internal
and external flow of the cost. This system also reducing the many expenses of cost. The
management accounting system review the cost of the economic resources. This is also
developing the business decision making process(Ward , 2012). This is the best benefits of the
management accounting. The decision making process create the best decision of the product.
The benefits of the accounting increasing the financial returns.
D1 process of the management accounting systems
The process of the management accounting system define the planning, organising,
staffing and controlling process. The process create the company best budget and the company
objectives and goals. The accounting management process define the decision making process.
This decision evaluating the best resources of the financial instrument.
P2 Type of management accounting system and its use to each and every department in the
context of Imda tech
The management accounting collecting the company financial data and developing the
company objectives. The type of the management accounting provide the best decision process
and create the financial and non financial data of the company. The accounting system help to
the senior management and their decision making process. This type provide the company
structure and cost of the production. The cost create the fixed and variable cost. This cost is the
most important cost of the factory that evaluating the management accounting system this system
create the corporate social responsibility in the organisation. The type of the accounting create
the company objectives and goals. There are two types of the accounting are as follows(Lukka
and Modell, , 2010).
Traditional accounting: This accounting define the traditional approach. This accounting provide
the help related to the cost decision. The accounting manage the financial aspect and company

data. The system of the management accounting calculating the company maximum profit and
reducing the risk factor. The system take the direct and indirect cost of the Imda Tech company
product. The direct cost of the company maintain the materials and manufacturing process, cost
of the wages and different product. The indirect cost of the company including the many
expenses and revenues. This costing related to the activity based costing and determine the
inaccuracy problems. The system calculating the total cost of the production. Traditional
accounting based on the number of the process.
Lean accounting: This accounting define the many large number of the firm. This firm create the
many profit in this methods of lean accounting .This accounting reducing the wastage resources
and risk factor. The management accounting also create the lean enterprise as well as business
strategies. This accounting is the best method to create the economic enterprise. The type of the
management accounting also define the many types related to the Imda Tech company mobile
and telephone manufacture product. This company introducing the many types are as
follows(Bodie, Z., 2013).
Cost accounting system: This system is the based on the traditional system. This system
estimated the cost of the product and their profitability ratio of the company. This system create
the cost of the product and value of the inventory. This accounting control the abnormal cost and
estimated the cost of the product. This system is a frame work of the company and create the
company cost structure.
Inventory management system: This system evaluating the stock value of the company. The
inventory management create the management process of the planing, organising, staffing and
controlling process. The Imda company create the management process in the inventory control.
Difference between the marginal costing and absorption costing.
Marginal costing Absorption costing
This costing provide the production cost. This costing evaluating the total cost of the
production.
This costing including the fixed and variable
cost. The fixed cost create the period cost and
variable cost create the product cost.
This costing determine the variable and fixed
cost(Otley and Emmanuel , 2013).
This accounting create the profit volume ratio. This costing determine the fixed cost

production.
This system related to the fixed and variable
overhead.
This system create the selling and distribution
over head.
Task 2
P3 Preparation of income statement of Imda tech using marginal and absorption costing
Income Statement as per absorption costing :
Selling price £35
Unit costs
Direct materials £8
Direct Labour £5
Variable Production overhead £2
Variable sales overhead £5
Budgeted production for the period is 3000 units
Actual production for the September is 2000 units
Fixed costs for the month are given below
Budgeted cost Actual cost
Production overhead £15,000 £15,000
Administration cost £10,000 £10,000
Working 1: apportioned of fix cost per unit
£25000/2000=£12.5 per unit
Working 2: Calculate full production cost
Direct material £8
Direct labour £5

Variable cost £2
Prime cost £15
Fixed cost £12.5
Total £27.5
Working 2: calculate value of inventory and production
Opening inventory Production Closing inventory
0 2000*27.5 = £55000 500*27.5 = £13750
Working 3: under/ over absorbed fixed production overhead
Actual fixed production: £25000
Fixed overhead: £25000
Total nil
Net profit using absorption costing £
Sales £52500(1500*35)
(-) Cost of Sales:
Opening inventory 0
Production £55000
Closing inventory ( £13750)
Total cost 41250
Net Profit £11250
The Imda tech company create the production of the cost and determine the price of the
cost. This is also determine the management process in this organisation. The company use the
many method of the marginal costing(Garrison and et. al., 2010). This costing determine the
fixed cost and variable cost. The inventory value of the product create the closing and opening
inventory. This profile show the income statement of the Imda Tech company. The net profit of
the income statement define the maximum profit of the product sale.
Income statement as per marginal costing :
Working 1: Calculate variable production cost £
Direct material 8

Direct labour 5
Variable production 2
Variable production cost 15
Working 2: Calculate value of inventory and production
Opening inventory Production Closing inventory
0 2000*15 = 30000 500*15 = 7500
Net profit using marginal costing £
Sales 52500
Less Variable costs
Opening inventory
Production 30000
Closing inventory (7500) (22250)
Variable sales (10500)
Contribution 12000
Less Fixed costs
Fixed Production overhead 10000
selling & admin cost 10000 (12000)
Net Profit nil
The product cost define the increasing and decreasing influence. This company
manufacture the mobile and telephone product. The additional unit of the product create the
marginal costing. Company fixed cost and selling cost are equal so the company selling price is
high.(Cinquini and Tenucci, 2010).
M2 Techniques and reconcile the profit
This techniques define the marginal cost techniques. The cost of the production define the
fixed and variable cost. The techniques evaluating the organisation goals and objectives.
D2 data of the business activities.
The data of the business activity define the company primary and secondary data.
Company use the primary data and evaluating the many method related to the primary data.
Primary data of the company use the many method of the research. The data also create the
marginal cost and accounting cost. This costing define the relationship between the financial and
Non financial accounting (Luft and Shields , 2010).

TASK 3
P4 Planning tool with the discussion on budget and pricing strategy in the context of Imda tech
limited
A) Different types of budgets and their advantages and disadvantages
Budget : A budget is the pre determine financial plan for a defined period of time. A budget is a
quantitative approach for every business planned sale, revenue, resource quantity, expenses,
costs, assets, liabilities and cash flows are the part of budget. Budget is a well managed plan for
any business or an organisation.
Types of budget :
Master Budget : Master budget is also called the continuous budgeting. It is one year budgeting
plan for firm and organisation. If any organisation plan for master budget it passes from year to
year then normally a month is added to the end of the budget to planning.
Advantages :
 The first and important reason of creating master budget is it gives the overview of the
company's budget to the business owner and company executives(Scapens and Bromwich
, 2010G).
 Master budget tell the overall earning and spending of the business.
Disadvantages :
 The major disadvantage is it is very difficult to update the detail.
 In this different numbers and categories are included that is why it is difficult to perform.
Operating Budget: Operating budget is the annual budget of the organisation. It determines the
estimated value of the value of resources required for the performance.
Advantages:
 This budget provides the detailed analysis of future and current proposed expense pattern
control.
 It removes unnecessary costs and focuses on value adding activities.
Disadvantage :
 Operating budgeting is very time consuming method of budgeting because of large
number of transactions.
 It is in accurate in nature.

Static budget : Static budget evaluates the anticipated value about input and output or the firm. It
is quite different form the actual result.
Advantages :
 It compare the actual sale figure with the expected sale figure(iovannoni and et.al, 2011).
 It is flexible in nature.
Disadvantage :
 Its main weakness is its strength.
 This budget is only controlling the business cost it does not adjust its volume during the
year of performance.
Cash flow budget : Cash flow budget is an estimation of total cash inflows and total cash out
flows during a particular year. In this the records can be made monthly, quarterly and yearly.
Advantages :
 It describe the actual position of the business. It allows the business to take a loan or
other any other type of finance.
 It prepare the future unexpected bills and payments.
Disadvantage :
 It is not accurate because of rough estimate.
 It maintain accounts for short period of time(.Soin and Collier , 2013).
b) The process of preparing budgets.
Gather information : For making a budget the basic step is to collect the information regarding
source of income or expense. The organisation need to know how much is going out from the
organisation and how much is coming in the organisation.
Record all of your source of income : The organisation need to keep records of all the resource of
income like self employed, employment, loans, grants, scholarship and keep the record of out
side resource of income as well.
Create a list of monthly expenses : The firm should kept record of total monthly expected
expenses. In this rent, transportation, insurance, groceries, junk food, utilities, entertainment,
clothes, books supplies, internet, photocopy, laundry, are included.
Break expenses into categories: The organisation keep the record of total fixed expenses and
total variable expenses in a particular period of time. This expenses arises time to t8ime in the
organisation.

Total your monthly income and monthly expenses : At the end of the year if your income is more
then the expenses then it is the situation of profit and if the expenses are more then the income
then it is a loss situation(van der Steen , 2011).
Make adjustment to expenses : The firm need to keep the all income and expense together in a
equal column. This explains the all income is accounted for budgeted for expenses.
Cut spending : If the expenses are more then the money then the firm needs to find out the area
where they can make cut of their expenses.
Review your budget monthly: The organisation need to review the budget at regular basis for
satisfaction of work. After a month the firm need to compare the actual expenses with the
created budget.
Plan for occasional expenses : If there is any time to time expenses such as clothing, gifts,
vacation etc. all are include in budget plan.
Budgets are for saving too : Budget is also call the savings because if some amount of rupee is
left after paying any bills and add this money in the savings of the organisations. The
achievement of goals is depends on the saving.
Balance your budget : It is the final step of the budgeting process if the organisation is new to
budgeting it is possible that the budget may not be balance at that time the organisation find the
place where they can spend less and make adjustment for the loss(Li and et. al., 2012).
pricing strategy :
Every different organisations use various pricing strategies. Imda Tech is a
communication authority company it uses so many different kind of pricing strategy . A well
pricing strategy helps the organisation to maximise the profit on sale of product and services. For
setting a price the Imda Tech consider production, distribution cost, competitor offerings,
positioning strategies etc.
Some following strategies used by Imda Tech :
Pricing at premium : The organisation set the premium price for those products which are new
at market place and there is not any competitor available in the market. Business set cost more
then the competitors it is arises at the situation of products new life cycle.
Penetration pricing: This strategies define the price of the product. This is reducing the product
cost and evaluating the company sales profit. This is also define the market share price of the
product.

M3 preparing and forecasting budgets
The company applying the many process of the budget preparing. Update the budget
information and create the availability of the funding. Company create the budget packages and
issue the budget. Company update the budget modal(Herzig and et. al., 2012).
D3 planning tools of the accounting in financial problem
The planning tools of the accounting determine the many tools of the company. This
tools including the net profit margin, SWOT analysis, rolling forecasting, overhead forecasting,
gross margin, strategies planning, variance analysis, cash forecasting. The management
accounting create the net profit and margin. This tool create the company strength, weakness,
opportunity and thread.
TASK 4
P5 Balance scorecard and its implementation to improve the performance
The balance score card determine the report and research of the above information. This
is the important factor to measuring the company performance. The Imda Tech company create
the many budget and their policies. The company improve the cost of the product and create the
market share in the accounting system. The company measuring the performance of the
employment. This is measuring the performance of the past year performance define the
company vision and mission and also developing the organisation objectives. It also providing
the help to measuring the company strategies. The Imda Tech company use the many
performance chart and identify the company data(DRURY , 2013). This performance also
maintain the good behaviour of the customers. There are many information to create the
company profile related to the financial, internal business process, learning and growth and
customer.
Balance scorecard also help in the performance of the employees.
Implementation of balance scorecard: the Imda tech company provide the help to increasing the
company product. This report also help in the employees motivation and their selection process.
The balance record create the mini research of the company project. It also provide the help to
measuring the traditional financial performance. It define the competitive environment and
improve the innovation plan and innovative ideas. The manager of the Imda Tech company

measure the customer satisfaction and internal process of the organisation. The balance scored
create the company budget and pricing strategies.
it also improve the company budget and determine the best budget in the company. The report
also create the company structure in the organisation. The balance determine the financial and
non financial process and create the development and research in the Imda company(Scapens
and Bromwich , 2010.).
M4 financial problems, management accounting
The financial problem of the accounting system determine the many problems in the
management process. The problems including the adaptability. This is create the management
accounting proceeder. The adaptability is the best advantages of the Imda Tech company. This
accounting create the best report of the accounting. This accounting help in benchmarking and
comparing the performance of the manager. The Imda Tech company produce the mobiles
product. The second problem is reliability that define the decision making of the manager of the
business. The reliability create the real and current position of the company. This is also help in
the management accounting system for the present position of the Imda Tech company. The
most important feature of the quality information and product information. The cost is also
effecting the management accounting process. The cost create the design, time, monitor and

evaluating the company product. The company adopting the activity based accounting and
develop the best product design and company report.
D4 planning tools for accounting
Planning tool of the accounting determine the best tools and techniques to evaluating the
managerial accounting. The tool create the cost of the production and calculating the best budget.
The Imda Tech company only create the master budget and pricing strategies(Luft and Shields ,
2010). This budget is the best budget to calculating the company product productivity and
production cost. The management accounting tools create the best tools of the company. The
Imda Tech company create the framework, structure, and process of the accounting. Tools
increasing and improving the performance and decision making of the manager. The tools of the
company also supporting and providing the strategies goals and objectives and evaluating the
values or the company.
 The accounting tools create the top management in the business.
 Help in the management accounting and selecting the appropriate tool. This tool create
the company budget process and pricing strategies.
 Help in the best practise and implementing the effective tool.
 The costing tool create the price of the product and manufacture of the product.
 Pricing tool is the best tool of the accounting management because this tool create the
Imda Tech company product price.
 Budgeting tool create the best budget of the company product. The budget evaluating the
many budget including the master budget, operating budget, functional budget, cost and
static budget.
 Investment decision making tool is very important of the Imda Tech company because
this tool create the best decision related to the product and manager performance.
Decision making process adopt the every company to increasing the company sales and
create the best policy(Cinquini and Tenucci , 2010 ).
CONCLUSION:
As per the mention report determine the Imda Tech company product productivity and
create the many function of the management accounting. This report consists the relationship
between the financial and management accounting. The company use the many importance of
the management accounting and develop the best decision making process. The manager of the

company improve their report and product and evaluating the many system of the accounting.
This system improving company report and system define the actual, normal and standard cost
accounting. This report evaluating the many budget , pricing strategies and developing the
process of the budget preparation. The Imda Tech company define their report of the September.
This data is the define the company labour, material, variable and fixed overhead. Manager of
the company create the income statement of the report this statement provide the information
related to the mobile and telephone. Company also define their balance score card. This is create
the many performance and position of the company. The manager of the company evaluating the
management process and planning tools.

REFERENCES:
Books and journals
Zimmerman, J.L and Yahya-Zadeh, M., 2011. Accounting for decision making and control.
Issues in Accounting Education. 26(1). pp.258-259.
Macintosh, N.B and Quattrone, P., 2010. Management accounting and control systems: An
organizational and sociological approach. John Wiley & Sons.
Simons, R., 2013. Performance Measurement and Control Systems for Implementing Strategy
Text and Cases: Pearson New International Edition. Pearson Higher Ed.
Baldvinsdottir, G., Mitchell, F and Nørreklit, H., 2010. Issues in the relationship between theory
and practice in management accounting. Management Accounting Research. 21(2). pp.79-82.
Ward, K., 2012. Strategic management accounting. Routledge.
Lukka, K and Modell, S., 2010. Validation in interpretive management accounting research.
Accounting, Organizations and Society. 35(4). pp.462-477.
Bodie, Z., 2013. Investments. McGraw-Hill.
Otley, D and Emmanuel, K.M.C., 2013. Readings in accounting for management control.
Springer.
Garrison, R.H., and et. al., 2010. Managerial accounting. Issues in Accounting Education. 25(4).
pp.792-793.
Cinquini, L and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & organizational change. 6(2). pp.228-259.
Luft, J and Shields, M.D., 2010. Psychology models of management accounting. Foundations
and Trends® in Accounting. 4(3–4). pp.199-345.
Scapens, R.W and Bromwich, M., 2010. Management accounting research: 20 years on.
Giovannoni, E., Maraghini, M.P and Riccaboni, A., 2011. Transmitting knowledge across
generations: the role of management accounting practices. Family Business Review.
p.0894486511406722.
Soin, K and Collier, P., 2013. Risk and risk management in management accounting and control.
van der Steen, M., 2011. The emergence and change of management accounting routines.
Accounting, Auditing & Accountability Journal. 24(4). pp.502-547.
DRURY, C.M., 2013. Management and cost accounting. Springer.

Li, X., and et. al., 2012. A comparative analysis of management accounting systems’ impact on
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What are the Different Types of Management Accounting Systems? 2017. [Online]. Available
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