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A Study on Management Accounting Method for Imda Tech Limited

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Added on  2019-12-28

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Further, different among such both the aspects is given as below: |Management Accounting|Financial accounting | |Key objective of the management |Purpose of the financial accounting | |accounting is to provide report to |is to record day to day financial | |the managers in effectual way by |transactions and assess health of the| |which they can take fruitful |entity in form of financials. |Specific period of time which | ||determined by regulatory framework| ||which is such as

A Study on Management Accounting Method for Imda Tech Limited

   Added on 2019-12-28

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MANAGEMENT ACCOUNTING
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A Study on Management Accounting Method for Imda Tech Limited_1
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A Study on Management Accounting Method for Imda Tech Limited_2
INTRODUCTION
Management accounting is a method which helps to the company in order to take
effectual and fruitful internal business decisions for makes it the most profitable. There are
several kinds of approaches and systems come under the respective kind of accounting method.
The current study of the project is based on the company such as Imda Tech Limited which
operates in the electronic industry where it offers very special and particular type of charges for
the mobiles. Along with this it provides several electric gadgets to the retail stores and shops.
The study shows about the management accounting systems which are helpful and used by the
company along with making difference with the financial accounting. Further, it shows
preparation of the income or profit and loss statement by using two methods like as absorption
and marginal. Apart from this, the report describes about the different budgets as well as method
or steps followed while preparing the statement of budget. At the last, the current case study
looks upon the balanced scorecard approach which is the most beneficial for Imda Tech firm.
TASK 1
(A) I. Defining management accounting as well as segregating with financial accounting
Management accounting is a process of recording, analysing, interpreting, managing,
controlling as well as administering various financial transactions in appropriate way. With the
help of the management accounting the business entity such as Imda Tech able to know that how
and in which way the financial resources needs to manage. Apart from this, different types of
internal kind of business decisions are to be taken by the firm when it considers the management
accounting at the workplace (Cheng, 2012). There are two branches of accounting systems which
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A Study on Management Accounting Method for Imda Tech Limited_3
are such as management and financial. Further, different among such both the aspects is given as
below:
Management Accounting Financial accounting
Key objective of the management accounting is
to provide report to the managers in effectual
way by which they can take fruitful business
decisions.
Purpose of the financial accounting is to record
day to day financial transactions and assess
health of the entity in form of financials.
In this the accounts can be prepare by
management at any time or as per their
requirements.
Several financial reports and statements are to
be prepared at the specific period of time which
determined by regulatory framework which is
such as quarterly, half yearly as well as yearly.
In this case there are statutory compliances are
not required.
In financial accounting all the statutory as well
legal compliances are required properly (Cohen
and Karatzimas, 2013).
Apart from this, in the management accounting
focuses or looks upon the present and current
financial data along with the future also by
doing estimating or forecasting.
It focuses on those kinds of data which are
comes under consideration at the workplace in
the past. Further, it shows all the historical
financial data and informations.
On the basis of management accounting
internal business decisions are to be made as
well as it is used by the internal business
members (Kastberg and Siverbo, 2013).
By considering the financial accounting there
are external decisions are to be made by the
firm and helpful or used by the external parties
as well as stakeholders of the entity.
(A) II. Significance of management accounting in order to make business decisions
At the time of administering as well as managing the overall business in smooth way
there are management accounting plays an integral role. When the entity like as Imda Tech going
to make decisions for internal business process then such kind of accounting approach is the
most beneficial. Moreover, key significant role of management accounting in the company
provided as below:
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