Accounting Systems and Management Accounting Reports

The assignment provided focuses on the topic of financial policy and management accounting. It references several books and journals, including 'Financial Policy and Management Accounting' by Banerjee (2012) and 'Management Accounting Research' by Otley (2016). The purpose of this assignment is to understand the significance of management accounting in organizational decision-making and its role in facilitating informed business decisions. It also highlights the importance of considering contingent variables for adoption in environmental management accounting, as discussed in Christ and Burritt's (2013) article.

Unit 5
Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Management accounting and need of various types of accounting systems..........................3
P2 Methods used for management accounting reporting............................................................5
M1 Benefits and applications of management accounting systems............................................7
D1 Critical analyses of accounting reporting system..................................................................7
TASK 2............................................................................................................................................8
P3 Calculation of costs and net income using marginal and absorption costing........................8
M2 Types of management accounting techniques....................................................................10
D2 Interpretation of data...........................................................................................................10
TASK 3..........................................................................................................................................11
P4 Advantages and disadvantages of various planning tools used for budgetary control .......11
M3 Applications of planning tools of budgetary control .........................................................12
TASK 4..........................................................................................................................................13
P5 Comparison on how organisations are adapting management accounting systems............13
M4 Analyses of financial problems..........................................................................................14
D3 Evaluation of planning tools...............................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Management accounting is a core function while managing an organisation, which
includes various systems and techniques to prepare managerial reports and other documents so
that it can reflect a true and fair managerial and financial position of an organisation which helps
investors and other related parties to access accurate management reports and records.
Rowlinson Knitwear is a retail clothing company which deals in personalised knitwear, which
uses cost analyses techniques like marginal and absorption costing to prepare their income
statement and uses planning tools for the preparation of the budgets which are the future
estimates of their expenses and profits (Banerjee, 2012).
This project focuses on management accounting and its tools and techniques which helps
an organisation like Rowlinson Knitwear in the preparation of their managerial accounts and
reports for efficient decision-making process. Accounting techniques like marginal and
absorption costing used to determine net income and profitability by charging various expenses
including variable or fixed.
TASK 1
P1 Management accounting and need of various types of accounting systems
Management accounting refers to the process of preparing management accounting
documents and reports and extract the information from those reports to analyse, interpret and
represent the information in an understandable form. Management accounting is different from
financial accounting as it has a wider scope, it controls all management issues including financial
issues.
Rowlinson knitwear is a clothing retailer company based in United Kingdom which deals
in personalised knitwear, Rowlinson is the leading manufacturer in United Kingdom which uses
management accounting systems to improve their decision-making process. For an effective
management organisation uses various management accounting systems and they are:
Types of various management accounting systems and their requirements in an
organisation
Management accounting systems are the methods of recording and analysing which an
organisational manager to understand true and fair position of the organisation, these systems
are:

 Price optimisation systems – Price optimisation system is a management accounting
technique which helps an organisation to allocate different prices to their different
produced products and analyse the reaction of the customers, so that effective pricing
strategy can be developed. Rowlinson Knitwear delivers personalised school wear due to
which they have different prices for their various products due to which they uses price
optimisation system to satisfy all their customers and at the same time can earn
reasonable profits (Burritt, 2011).
 Activity based costing – Activity based costing or system is a process of determination
of costs involved in an activity performed by the organisation. For example, in case of
Rowlinson knitwear they determine the costs of their various activities like
manufacturing, packaging etc. by activity-based costing as it delivers accurate and
reliable results which can be trusted for preparing of financial and managerial reports.
 Inventory management system – Inventory management system is a process of
managing and controlling the issues related to inventory stocked in an organisation.
Rowlinson Knitwear is a retail store in United Kingdom and delivers number of clothes
every year due to which they requires an efficient inventory management system and this
management accounting system provides a framework to manage and control their
inventories including raw material and goods engaged in work in progress so that their
organisational objectives like customer satisfaction and profit maximisation can be
achieved.
 Cost accounting system – Cost accounting system is a method which helps an
organisation to determine all their costs involved in an organisation so that they can
estimate their profitability, here Rowlinson Knitwear also uses cost accounting system to
estimate all the costs which can be included in their processes so that a clear profit can be
ascertained.
 Job costing – Job costing system is a process of determining the cost involved in an
specific job, job costing helps an organisation to determine costs for various job this
system is appropriate for the organisations where there is production of customised
products like Rowlinson Knitwear which deals in personalised products (Christ, 2013).
 Product costing – Product costing system is a method of determining all the costs
involved in a product which is manufactured by an organisation including all direct and

indirect costs like direct material, direct labour, other variable and fixed manufacturing
expenses. Here, Rowlinson Knitwear has also adapted cost accounting system to
determine costs of their products so that they can allocate the prices and ascertain the
profitability.
P2 Methods used for management accounting reporting
Management accounting reports are the managerial documents which reflect the true and
fair picture of an organisation's financial position, preparation of these management accounting
reports are a crucial task to perform as it requires high skills. There are many reports which can
be prepared like financial and costing reports but unlike management accounting report they
can’t present an exact reflection of the organisation's financial and managerial position.
Rowlinson knitwear has hired a team of professionals who look after their managerial
accounts and reports to make sure that investors and other parties can access accurate reports and
other managerial documents ( Contrafatto, 2013).
Types of management accounting reports
Management accounting report is an organisational management document which is
prepared by the managers for the third parties so that they can access a true and fair picture of the
organisation, few of those management accounting reports are:
 Financial reports – Usually financial reports are included in financial accounting but to
acknowledge an accurate management position of an organisation it’s important for the
managers to include financial report while preparing managerial accounting report as it
reflect figures and exact numbers of the organisation's profitability, costs etc. Financial
reports of an organisation mainly includes trading account, profit and loss statement and
balance sheet. Rowlinson Knitwear prepares their financial report by including their
profit and loss statement which shows all revenues and expenditures of the organisation
and balance sheet which the evidence of the assets and liabilities is.
 Cash flow report – Cash flow statement or report includes all cash transactions of the
organisation which affects an organisation's performance. It includes all inflow and
outflow cash transaction occurred from operating, investing and financing activities,
Rowlinson Knitwear prepares cash flow statement for short periods which can be
beneficial for them to access monthly estimates of expenses and which can update easily.

 Sales report – Sales report includes sales done in a financial year which can help an
organisation analysing what sources are more profitable and identifies those salespeople
who generates most income. Rowlinson Knitwear prepare their sales report by
determining all sales made in an year, and analyses which distribution channel is
generating more revenue that is retail distribution channel or wholesale distribution
channel (Fullerton, 2014).
 Performance report – Performance report are prepared to check overall performance of
an organisation including every employee of every department, managers of an
organisation analyse and evaluates performances of employees and compare it from
various pre-fixed standards and benchmarks. Rowlinson Knitwear prepares their
performance report to have accurate results for development of their strategies which can
lead them towards achievement of their goals.
 Job cost report – Job cost report is a type of management accounting report which
determines the costs involved in various jobs performed in an organisation. Job cost
report helps organisations like Rowlinson knitwear to evaluates and identify the profit-
making ability of various job activities, so that manager can focus on most profitable job
activity.
 Account receivable report – Account receivable report is a document which contains
lists of all unpaid customer along with their amounts, dates and accounting periods.
Accounting receivable report is prepared to account the records of all unpaid buyers to
make sure that all amount is received duly, if any unpaid buyer fails to pay the amount
than it will be recorded in bad debts report separately or in the section of bad debts in
account receivable report only.
 Inventory management report – Inventory management report is an accounting
document where all inventories of an organisation are recorded regardless of its nature
like raw material, goods engaged in work in progress or final products. This accounting
report is important as organisations like Rowlinson Knitwear which diversity in their
products and inventories are in much need of an effective inventory management report
system, so that all stocked inventories can be used efficiently ( Giovannoni, 2011).

M1 Benefits and applications of management accounting systems
Management accounting systems are developed for the ease of organisations and these
systems are universal applicable, different systems are appropriate for different type of
organisations depending on its size, scope and nature. Application and benefits of these
management accounting systems are described below:
Price optimisation system This system is appropriate for those
organisations which has diversity in their
products, due to which this system is
applicable where there is need of allocate the
prices to different produced goods.
Activity based cost system Activity based system is applicable on
organisations where there are different
departments and complexity in activities like
Rowlinson Knitwear
Inventory management system This management system benefits those
organisations which has a lot of stocked
inventories like grocery stores.
Cost accounting system Cost accounting system is beneficial for every
organisation as it helps in determining the costs
involved in every activity and product of the
organisation.
D1 Critical analyses of accounting reporting system
Management accounting is a process of preparing management accounting documents to
serve valuable and reliable information in an understandable way, management accounting
documents or reports are prepared by the help of management accounting systems. Cost
accounting system is used to prepare performance report, similarly inventory management report
is prepared with the help of inventory management system which shows the integrated
mechanism of management accounting systems and management accounting reporting ( Hilton,
2013).

Rowlinson Knitwear integrates management systems to management reporting for
effective decision making, manager of Rowlinson Knitwear has appointed a team of professional
which prepares management accounting reports using management accounting systems.
TASK 2
P3 Calculation of costs and net income using marginal and absorption costing
Marginal costing – Marginal costing is the costing technique where all variable costs are
charged against sales to calculate contribution and all fixed costs are charged against
contribution to ascertain net income or profit of the organisation. Variable costs are the sum of
all marginal costs including direct material costs, direct labour costs and other variable
manufacturing costs ( Lambert, 2012).
Marginal costs are used by organisations so that they can ascertain their profit-making
ability after charging all costs by using below mentioned formula:
Sales revenue – Marginal costs (Direct material+Direct labour+Direct expenses+Variable
overheads) = Contribution – Fixed costs = Net income or profit
Particulars Amount
Sales revenue = (selling price * no. of goods sold = 55 * 600) 33000
Marginal Cost of goods sold: 9600
Production = (units produced * marginal cost per unit = 800 * 16) 12800
closing stock = (closing stock units * marginal cost per unit = 200 *
16) 3200
Contribution 23400
Fixed cost ( 3200+1200+1500 ) 5900
Net profit 17500
Absorption costing – Absorption costing is a cost accounting technique where all costs
of goods sold or manufacturing costs are absorbed by sales revenue to ascertain gross profit,
costs of goods sold includes all manufacturing costs including direct material, direct labour and

other variable and fixed manufacturing costs. Unlike Marginal costing, this costing technique
absorbs all costs either variable or fixed, and appropriate for financial and tax reporting (Otley,
2016).
Absorption costing is used by organisation to ascertain net income and ensures that all
costs are charged against sales revenues, profit in absorption costing is relatively less than profit
calculated by marginal costing. Formula of absorption costing is:
Sales revenue – cost of goods sold = gross profit – selling and administrative expenses =
Net profit and income
Particulars Amount
Sales = (selling price * no. of units sold = 55 * 600) 33000
Cost of goods sold = (total expenses per unit * actual sales = 23.375 * 600) 14025
Gross profit 18975
Selling & Administrative expenses = (variable sales overhead * actual sales +
selling and administrative cost = 1 * 600 + 2700) 3300
Net profit/ operating income 15675
Break-Even – Breakeven point is the event in an organisation when there is no profit no
loss, when organisation is experiencing situations where all expenses and revenues are equal.
a. The number of products to be sold to break even
Sales per unit 40
Variable costs VC = DM + DL 28
Contribution 12
Fixed costs 6000
BEP in units 500
b. The breakeven point in terms of sales revenue

Sales per unit 40
Variable costs VC = DM + DL 28
Contribution 12
Fixed costs 6000
Profit volume ratio PVR = Contribution /
sales * 100 30.00%
BEP in sales 20000
c. The number of products that need to be sold to make profit of 10,000
Profit 10000
Fixed costs 6000
Contribution 16000
Contribution per unit 12
Sales 1333.33
Margin of safety – Margin of safety or MOS shows the safety level of the organisation,
MOS reflects that how many sales can fall before a business can reach at no profit no loss or
break-even situation.
d. The margin of safety if 800 products are sold
Actual sales in units 800
Break even sales in units 500
Margin of safety 37.5
M2 Types of management accounting techniques
Management accounting techniques are the tools which determines profitability of an
organisation by charging various costs like fixed, variable, budgeted, manufacturing and selling
against sales revenue gained by the organisation. Some of the management accounting
techniques are mentioned below:

 Standard costing – Standard costing is a process of estimating future profitability; all
pre-determined predicted costs are charged against estimated sales. This process of
determining net profit compares the budgeted or standard profits from actual outcomes.
 Marginal costing – Marginal costing is an management accounting technique which
helps an organisation in determination of net incomes of an organisation by charging all
variable costs against sales revenue to ascertain amount contributed by an organisation
and then charging all fixed costs against that contributed amount to determine profits or
net incomes ( P. Tucker, B. 2014).
D2 Interpretation of data
Profit calculated under marginal costing that is 17500 is higher than the profit calculated
under absorption costing that is 15675, this difference is caused as marginal costing only
includes variable manufacturing costs, but absorption costing includes all manufacturing costs
either variable or fixed. Similarity contributed amount in marginal costing is higher than the
gross profit calculated from absorption costing.
From the data, it can be interpreted that if this organisation at least produces 500 units than it can
face situation of no loss no profit, margin of safety is calculated to identify the safety level of an
organisation, in this case margin of safety is 37.5.
TASK 3
P4 Advantages and disadvantages of various planning tools used for budgetary control
Budgetary control is a technique of management control which compares budgeted
estimates from actual outcomes, budgetary control involves preparation of various budgets like
sales budget, cash budget, fixed budget, flexible budget etc., which helps an organisation to
make profit.
Cash budget – Cash budget is the estimation of cash position of the organisation, where
all expenses are revenues are recorded which are likely to be incurred or gained in future( Ward,
2012).
Sales budget – Sales budget is the primary budget which is prepared before any budget
to estimate all future sales according to the demand and trend analyses of past few years.
Planning tools used in budgetary control are the techniques which are kept in mind while
preparation of any budget, these tools are forecasting, scenario and contingency tools which

helps an organisation to make more reliable and accurate budgets. Planning tools has its own
advantages and disadvantages which are listed below:
Forecasting - Forecasting is a planning tool that projects future events and conditions, it
helps management to ascertain the uncertainties of the future by considering past experiences
and trend analysis.
 Advantages: Forecasting is the process of ascertaining future events which helps an
organisation to achieve their objective of customer satisfaction as they predict customers'
requirements and demands, forecasting also helps in reducing staffing costs by predicting
how many employees are needed to do a specific job.
 Disadvantages: Forecasting is based on past events, which cannot give an accurate true
and fair projection of future events, forecasting involves trend analyses which is not a
proof or evidence of reliable projections (Van, 2011).
Contingency – Contingency is a planning tool which enables an organisation to be
prepared for future uncertainties and emergencies, contingency planning includes advance
decision making about the financial resources and inventory management. Contingency planning
includes answering the questions about what is going to happen, how management is going to
deal with it and what steps should be taken to deal with such emergencies.
 Advantages: Contingency plan acts as a backup plan which is activated when there is
any emergency situations which reduces loss. Contingency plan activates when there is a
disaster situation and prevents panic of managers and helps in getting clear plan to
follow, it allows managers to focus on recovery instead of panicking. Contingency plan
includes steps for prevention which minimises the damages likely to occur in
emergencies.
 Disadvantages: Contingency plan is a backup plan for future emergencies, but if none
of the emergency situations occur than all the money and resources used in preparation
of contingency plan is resultant to be wasted.
Scenario – Scenario is a planning tool where manager develops all possible scenarios
which may can occur in near future, this plan captures all possibilities by identifying trends and
possible uncertainties.
 Advantages: Scenario is a planning tool which improves the quality of decision-making
process, due to scenario planning organisation can efficiently use available resources. It

allows manager to look forward and reduce the risk involved managerial activities,
scenario planning focuses on group efforts which also increases the quality of
communication.
 Disadvantages: Primary purpose of scenario planning is effective decision making
which requires high skilled staff due to which it becomes difficult for small scale
businesses to involve such high costs and ample of time in the process of planning. For
the companies which has less possible scenario, its waste of time, money and resources
to involve in the process of planning ( Soin, 2013).
M3 Applications of planning tools of budgetary control
Planning tools of budgetary control like forecasting, contingency and scenario helps an
organisation to prepare various budgetary reports like cash flow statement and various budgets.
Cash flow statement – Cash flow statement is an accounting document which shows all
inflow and outflow cash transaction so that net cash available can be ascertained in the
organisation along cash available for operating, investing and financing activities.
Budgeting – Budgeting is a process of preparing budgets which can give an estimate of
various functions like sales, productions etc. Budgets are the estimates for future profitability and
cost which can be incurred.
TASK 4
P5 Comparison on how organisations are adapting management accounting systems:
Management accounting systems are methods or techniques which are used to prepare
management accounting reports and serve reliable and accurate data which can be further utilised
by managers for decision making process. Organisations like Rowlinson and Unicorn grocery
limited has adapted management accounting systems like price optimisation system and
inventory management system to increase the credibility of their businesses and to tackle the
financial issues present in their organisation. sustainability impacts budgeting and pricing
decisions, investment appraisals and strategic planning. Financial issues and sustainable business
challenges from which these organisations tackle and also these are linked with strategy,
business model etc, are discussed below:
 Regulations and compliance – Rules and regulations are different for every kind of
organisation depending on its nature, and changes in these rules makes it difficult for

organisations to cope up with these changes while framing strategy. Every company is
required to be registered and for that they have to fulfil all the requirements of
registration, all documents are necessarily to be compiled along with following of all
regulations fixed by authorities. Before establishing any business it is very essential to
get the licence permitted from state or local government. In order to attain licence
business should abide by certain laws of government then only they get legal permission.
Though laws and legislations for respective company rigidity in financial laws of United
Kingdom and fixed governmental policies are the major issues faced by the organisation
while managing their finances.
 Legal issues – Legal issues like changing laws and legislations about businesses makes
it difficult for the organisations like Unicorn grocery and Rowlinson to manage their
finance, rigidity in financial laws of United Kingdom and fixed governmental policies
are the major issues faced by the organisation while managing their finances. Company
create business model to capture and deliver value to customers. Thus, with the change
in trend it becomes essential for company to simultaneous adopt changes. Herein,
company may face certain challenges like change in internal vision, resistance to change,
change in product vision and risk aversion. Thus, respective company need to overcome
such challenges for sustainable development.
 Financial management – In an organisation which has diversity in its activities, it’s
difficult to manage all the financial activities. Organisation with diverse activities,
becomes challenging to manage all financial activities. Thus, companies like Unicorn
groceries and Rowlinson has adapted cash flow management accounting system and
activity based on cost system to manage their financial activities, these management
accounting techniques assist in tackle all financial issues occur in the course of business.
Companies like Unicorn groceries and Rowlinson has adapted cash flow management
accounting system and activity based cost system to manage their all financial activities,
these management accounting techniques helps in tackle all financial issues occur in the
course of business (Shah, 2011).
 Uncertain future – The main business challenge faced by Rowlinson Knitwear is to
keep on anticipating the current taste and preference of customer for sustainable
business. Following recent innovation and trend brings profitability to business by

generate more and more cash inflow. Every business face problem while predicting
financial future events, but with the help of managerial accounting systems like
budgetary control and forecasting analyses this problem can be minimised, Unicorn
groceries has hired a team of professional who are experts in forecasting future through
analysing past events and market trends (Renz, 2016).
 Technology – According to today's scenario technology is rapidly changing for the
betterment of the world, but due to this continuous change in technology, business
organisations face serious finance issues. Companies like Unicorn groceries are small
scale businesses and its difficult for them to change their technological tools frequently
as they do not have such budgets for their machineries.
 Maintaining reputation – Building a brand image and maintaining reputation in the
market is becoming a challenge for the organisation especially for Rowlinson where
there is huge number of competitors present in the market, due to these problems
Rowlinson has adapted contingency and scenario planning tools to manage all the
financial issues which occur due to building a reputation in the market.
Environmental and social trends that have impact on company's ability to create value
over time:
 With the change in trend, the present financial system may not always remain same to
generate value overtime. For instance, considering only monetary information for
decision making can either lead to risk or opportunity for both investor as well as society.
 It is essential for respective company to consider environmental trend as majority of the
business risk occur because of environmental factor. Thus, the gap need to be bridged
along with that sustainable behaviour needs to be encouraged.
 Moreover, environmental and social trend need to be appropriately analysed by
Rowlinson Knitwear to reduce the future complexities. Thus, appropriate analysis of
these factors make things even more easier for most sustainable companies to create
create financial system, environment and society.
The above-mentioned financial issues can be resolve through using below mentioned system
or tools. some of them are:
KPI: It is one of the effective measurable value that can demonstrated how effectively a
company is attaining key business objectives. Organisation can use key performance indicators

to determine company success by the help of controlling the financial issues during the period of
time. KPI helps to achieve organisation's objectives and goals.
Beyond the sales or turnover, expenditures and profit, most commonly and widely used
financial KPIs are gross profit margin and net profit margin, which helps to evaluate how much
money a company makes on sales of products, supports strategies gaols, inventory turnover,
which tracks how quickly products held in inventory are sold where as cost of goods sold, a
measure of the materials and labour costs incurred in making products; accounts receivable
turnover, a ratio that quantifies how quickly payments on credit sales are collected from
customers; and days sales outstanding, a related metric which gauges the number of days' worth
of receivables that have yet to be collected.
Benchmarking: It is an essential process of measuring the overall performance of a
company products, services or procedure against those of another business considered to be the
best in the industry. Unicorn groceries can easily be able to maintain its reputation by setting
standard benchmark against the other company till the targets cannot get attained.
Management Accounting tools and techniques: It refers to systematic methods through which
process under management accounting can be easily and effectively managed by managerial
personnels. Following are the major management accounting tools and techniques are as follows:
Scenario Planning of Natural resource availability: Under this technique a plan is
formulated by management in form of scenario to asses organisation's available resources that
provide a frame for decision making.
Life-cycle costing: In this technique company's significant product's life cycle is
analysed in order to make cost analysis that assist in business decision making activities and also
helps to evaluate viability of project.
Carbon foot printing: This is technical method used by management to analyse previous
or subsequent trend to make important decisions in organisation.
Unicorn groceries limited Rowlinson Knitwear
Unicorn groceries limited is a retail groceries
company which uses process costing to
determine costs involved in particular
department or process.
Whereas Rowlinson Knitwear is a retail
clothing company which uses job order
costing for determining the cost of particular
units.

Unicorn groceries deals in delivering multiple
groceries and other product and to manage all
those activities, they have adapted inventory
management system.
Rowlinson Knitwear is a retail clothing
company, and every product's price
determination is a crucial task to perform, and
to tackle this problem, managers of this
company uses price optimisation system to
determine and evaluate the prices.
With the help of cost accounting system,
unicorn grocery can easily record their total
cost which are incurred during production
process.
Rowlinson can make use of Inventory
management system to analyse their stock
position that are kept by the company within
the accounting period of time.
Price optimisation systems can also be
another crucial option by which Unicorn
grocery can know the perception of the
customer regarding their grocery product that
are purchased by them.
Just-in-time is the most reliable option for
the Rawlinson to control and maintain proper
balance among the inventory of the company.
M4 Analyses of financial problems
Management accounting is a process of preparing managerial accounting documents and
reports to serve valuable information about organisation's true position and sustainability impacts
in order to inform budgeting and pricing decisions, investment appraisals and strategic planning.
Management accounting involves various methods and techniques which can help an
organisation to achieve sustainable success despite of all financial issues as management
accounting systems has techniques like cash flow analyses and marginal costing which helps in
determining all costs of an organisation which can solve financial issues. Above discussion
integrates sustainability issues along with relevant financial and non financial information. Using
an established framework of information acquisition, evaluation, and weighting, this
experimental study investigated how the choice of reporting format interacts with the voluntary
assurance of sustainability information.
D3 Evaluation of planning tools
Planning tools like forecasting planning and scenario planning helps an organisation to
estimate all possible scenarios for future which can lead a company to build an effective

prevention plan for all the future uncertainties and emergencies. These planning tools are base
for preparation of budgets and cash flow statements which are considered as almost accurate
estimates for future costs and revenues (Parker, 2012).
CONCLUSION
From the above report it can be concluded that management accounting is a core function
of an organisation to perform, this crucial task is performed by a team of professionals and
controlled by managers. Management accounting is a process which helps an organisation in
preparation of managerial accounting reports by using appropriate management accounting
systems, every organisation irrespective of its nature, size or scope is in the major need of an
effective management accounting system so that they take decisions which can result in
profitability. Accounting techniques and costing techniques are considered to be the tools to
determine profit and all costs that are incurred in a financial period, to support these accounting
techniques there are few planning tools such as forecasting and contingency tools which predicts
future events so that future budgeted profits can be ascertained. Organisations like Rowlinson
knitwear uses various accounting system to ensure their accurate and reliable management
accounting reports.

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