Management Accounting: Techniques, Planning Tools, and Financial Problem Response

Management Accounting

Table of Contents
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................4
P.3 With suitable techniques of cost analysis costing can be calculate with the objective to prepare income
statement through using the method marginal & absorption costing?...................................4
..........................................................................................................................................................8
..........................................................................................................................................................9
..........................................................................................................................................................9
TASK 3............................................................................................................................................9
M2 Application of management accounting technique and tends to be produce suitable financial reporting
document?.............................................................................................................................10
TASK 3..........................................................................................................................................10
P.4. Merits & drawbacks of Planning tools that are tends to be used for budgetary control.........................10
M3 Analyse planning tool that tends to be utilize along with application to create and forecast budget ?......13
P.5. Through doing comparison discuss management accounting system that helps to respond financial
problem ?..............................................................................................................................13
M4. Discuss in what manner responding to financial problem, different management accounting can lead to
organisation towards sustainable success?..........................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES .............................................................................................................................18
Books and Journal..........................................................................................................................18

TASK 1
Covered in PPT

TASK 2
INTRODUCTION
Management accounting is such branch that deals in presentation and giving information that
are tends to be based on accounting to management in appropriate manner so all the functions of
management can operate smoothly and also it support to take quick effective decision. Organisation
which was selected in the assignment is Prime furniture. As per specification of customers it tends to
manufacture their furniture items like stairs, doors, windows, chairs, dinning tables, almirah etc. In
this projects discussion on various topics are done like on techniques of cost analysis by giving suitable
practical example. Advantage and disadvantage of planning tool used to serve the purpose of budgetary
control. Also in the report planning tool analysis are done to develop budget. By doing comparison it
tends to be explain that how systems based to management accounting sought out the issues which are
relates to finance.
P.3 With suitable techniques of cost analysis costing can be calculate with the objective to
prepare income statement through using the method marginal & absorption costing?
Cost: It is called as the amount of expenditure which are incurred on specific thing for the
purpose to manufacture the item. It is a general term and it advisable in terms to qualify the word cost
for example factory cost, prime cost, direct cost, indirect cost etc. Through Analysing total amount of
cost Prime furniture do observation and eliminate such cost which are unnecessary included because
otherwise it makes their product costly. At the time when management require to set prices of such
product in which these are available in market than profit margin are tends to be added on actual cost
so that seller not to face any loss.
Absorption costing: It is costing method which is used to account all the expenses that are
related to production. Management adopt following method for the purpose to absorb cost that tends to
be incurred on a product. In this indirect as well as direct cost are tends to be included. Direct cost
related to labour, material which are attracted at the time of manufacturing On the other hand
administration cost, factory rent, insurance, compliances all are part of indirect expenses.
(Stockenstrand and Nilsson, 2017)