Unit 5 - Management Accounting

Note:- Report + 5 minutes PPT where you have to advise the company about budgeting approach to follow

FINANCIAL
MANAGEMENT

TABLE OF CONTENT
 INTRODUCTION
 MAIN BODY
 CONCLUSION
 REFERENCES

INTRODUCTION
 Management accounting can be defined as the process in
which the reports of business operations are prepared, these
reports helps the business manager in making the short term
or long term decisions of company.
 It have the task of identifying, analyzing, measuring,
communicating and interpreting the financial information to
the users.
 Report is about GSQ and it will be revealing the importance
of management accounting systems, management accounting
reports, the different types of management accounting
techniques.
 It will also be providing about the planning tools in
budgetary control. The study will also be revealing about the
different management accounting methods for responding to
financial issues.

Management accounting costing techniques.
 Absorption Costing: Absorption costing is also known as full
costing method that are acceptable under the accounting standards.
The costing method is used for calculating the net income and for
valuing inventory. It is used by organizations for absorbing the
manufacturing costs including both the variable and fixed costs.
 Marginal Costing: The marginal costing method is used by
company to measure the products cost. It is used in calculating the
costs of products incurred in manufacturing them. In this costing
method variable costs are charged on per unit basis. The concept is
based on behaviors of costs with change in volume of output.

REFERENCES
 Nitzl, C., 2016. The use of partial least squares structural equation
modelling (PLS-SEM) in management accounting research: Directions
for future theory development. Journal of Accounting Literature.
37.pp.19-35.
 Otley, D., 2016. The contingency theory of management accounting
and control: 1980–2014. Management accounting research.31.pp.45-
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