Presentation 10 Task 2: Report 11 Use of different planning tools use and advantages & disadvantages of budgets 12 Use and Advantages & Disadvantages of Variances 12 Use and Advantages & Disadvantages

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Unit 5: Management Accounting NSAB530B5

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Contents
Task 1...............................................................................................................................................3
Part A: Portfolio of Calculation and Comments..............................................................................3
Comment and interpretation of above results..................................................................................9
Part B: Presentation.......................................................................................................................10
Task 2: Report................................................................................................................................11
Part A and B:.................................................................................................................................11
Use of different planning tools use budgetary tools with advantages and disadvantages of each
planning tools.................................................................................................................................12
Use and Advantages & Disadvantages of Budgets........................................................................12
Use and Advantages & Disadvantages of Variances.....................................................................13
Analysis of Adoption of Management Accounting Systems by Organizations in Responding to
Financial Problems........................................................................................................................13
Use of Management accounting for leading Organizations to Sustainable Success.....................15
Use of accounting planning tools to respond appropriately to solving financial problems of
organizations for sustainable success............................................................................................16
References......................................................................................................................................18

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Task 1
Part A: Portfolio of Calculation and Comments
Summary of all the given information:
Year 3
Sale Price per unit
Production
Year 1
Year 2
Year 3
per unit
per unit
per unit

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Distribution Expenses
Administrative Expenses
units
units Net loss before interest and taxes
units Less: Interest expenses
per unit Net Loss before tax
Add: Tax @ 19%
Net loss
units
units Income Statement Under Absorption Costing
units Year 2
Particulars
Sales (3500*85)
Less: Cost of Goods Sold
Opening Stock ( 900 units)
Production (3800 units * 30)
Less: Closing Stock (1200 units *30)
Less: Fixed Indirect manufacturing cost
Opening (900/3500) *92000
Production (2600/3800)*92000

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Less: Closing Stock (1200 units *30)
Less: Fixed Indirect manufacturing cost
Opening (900/3500) *92000
Production (2600/3800)*92000
Total cost of good sold
Gross profit
Less: Other Overheads
Distribution Expenses
Administrative Expenses
Net loss before interest and taxes
Less: Interest expenses
Net Loss before tax
Add: Tax @ 19%
Net loss
Income Statement Under Absorption Costing
Year 3
Particulars
Sales (3200*85)
Less: Cost of Goods Sold
Opening Stock ( 1200 units *30)

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Total cost of good sold
Gross profit
Less: Other Overheads
Distribution Expenses
Administrative Expenses
Net loss before interest and taxes
Less: Interest expenses
Net Loss before tax
Add: Tax @ 19%
Net Loss
Income Statement Under Marginal Costing
Year 1
Particulars
Sales (2600*85)
Less: Variable expenses
Opening Stock ( 0 units)
Production (3500 units * 30)
Less: Closing Stock (900 units *30)
Total variable expenses
Contribution