Management Accounting Techniques and Planning Tools for Financial Problem Solving

Management Accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Brief description of of different kinds of management accounting techniques.........................1
Task 3...............................................................................................................................................3
Explanation of necessity of planning tools for managerial accounting......................................3
TASK4.............................................................................................................................................7
Uses of managerial accounting in solving financial problem......................................................7
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................13

INTRODUCTION
Management accounting is essential branch of accounting in which data collect, record,
analysis and interpretive in an effective way through which manger take decision. It is a
systematic process of management which reflected by mangers abilities and skills of mangers to
coordinate accounting information with their business strategies. Business entities use
management accounting to run their day to day business activities in an effective way and
achieve their predetermine goal with proper utilization of their scares resource. In order to
identify importance of management accounting, Prime Furniture has been selected, it is medium
scale enterprises, which provides furniture products to their relevant customers. In this report
different kind of managerial accounting techniques, marginal analysis, inventory cost, etc has
been describe and uses of managerial accounting as planning tool has been clearly describe.
Issues aeries due to lack of monetary resource and how effectively managerial accounting help
in overcome these problem has been describe.
TASK 2
Brief description of of different kinds of management accounting techniques
Management accounting techniques: To manage all the process of business organizations,
mangers use managerial accounting techniques, these techniques includes those methods and
framework which follow systematic procedures and interpreted accounting information in
effective way. Various types of techniques uses by manger of Prime Furniture which are
mention below:
Cost analysis: It is considered all different methods which are used for calculating and
measuring cost incurred during production and distribution process. Various costing
methods are developed for different types of organizations, standard costing, job costing,
and absorption costing all these methods are used for measurement of cost. These techniques
are apply for minimize cost of producing products.
Product costing: It is also part of cost analyasis, it is special type of costing method, in this
process value of costing are determine by calculating overall cost of production, it
considered overall factors of production use for manufacturing process. Main reason of
applying this technique to identify each unit cost and analysis which activity incurred high
cost during production process (Samuel, 2018).
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