Unit 5 Management Accounting - Management Accounting Principles

TITLE
UNIT 5 MANAGEMENT ACCOUNTING - MANAGEMENT ACCOUNTING
PRINCIPLES- A1

Table of content
 Introduction
 Calculation for preparing financial statement (Part A)
 Income statement under variable costing
 Calculation of closing stock
 Principles of management accounting:
(Part B)
 Role of MA and MAS.
 MA reports
 Method used for preparation of income statement
 Integration of MA with organization.
 Role of MAS
 Conclusion
 References

INTRODUCTION
Management accounting (MA) is a form of accounting that is aligned
with procedure of colleting all the information which can be used for
decision making. After collection of data, this is used for preparation of
internal reports and these are presented to management department of
companies so that they can take viable judgements..

Calculation for preparing financial
statement (Part A)
Overview of financial data:
Activities AMOUNT
Produced and sold units 10000 Units
Selling Price per Unit £25
Direct Material £50,000
Direct Labor £30,000
Variable Manufacturing Overhead £20,000
Fixed Manufacturing Overhead £40,000
Variable Selling Overhead £30,000
Fixed Selling and Administrative
Overhead
£30,000