HNBS305 Management Accounting Report: UCK Furniture Financial Analysis

This report provides a comprehensive overview of management accounting principles, focusing on their application within a business context, specifically using UCK Furniture as a case study. The report begins with an introduction to management accounting and its importance, followed by an exploration of various costing methods, including marginal and absorption costing, and their impact on net profit calculation. It then delves into the different management accounting techniques, such as financial planning and cost accounting, and how they are used to develop and interpret financial reports. The report also examines the advantages and disadvantages of different planning tools used for budgetary control, alongside estimations of expenses and the creation of a cash budget. Furthermore, the report analyzes methods to improve financial performance, evaluating the effectiveness of planning tools in management accounting. It covers different costing methods, financial reporting, budgetary control, and financial performance analysis, providing a practical understanding of how these concepts are applied in a real-world business scenario.

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
PROJECT 1......................................................................................................................................3
PROJECT 2....................................................................................................................................14
TASK 1..........................................................................................................................................14
1.1: Costing methods uses for evaluating net profit.............................................................14
1.2: Various range of management accounting techniques..................................................16
1.3: Develop financial report that apply and interpret data for a business...........................16
TASK 2..........................................................................................................................................17
2.1: Advantages and disadvantages of various types of planning tools used for budgetary
control...................................................................................................................................17
2.2: Estimate the expenses for July and August...................................................................18
2.3: Cash budget...................................................................................................................18
TASK 3..........................................................................................................................................19
3.1: Adoption of accounting system to deal with financial issues.......................................19
3.2: Analyse measures to improve financial performance of both company's.....................20
3.3: Evaluate planning tools use in management accounting...............................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Management accounting is an essential aspect for every small or large business
organisation. This will assists in better understanding of accounting systems those are being
crucial in analysing positive outcomes for the company. The second part of this project is
focusing various costing methods those are helpful in determining accurate net profitability of an
organisation during the time. Some specific tolls and techniques which is use in planning tools to
control budgets. Understanding of different financial issues and effective measure to resolve
them are discuss under this project reports (Bennett and James, 2017).
PROJECT 1
In every manufacturing businesses, it has been seen some sort of accounting issues which is
arises because of inappropriate systems. Managers are not following proper rules and regulation
while recording any financial transactions which is associated with the production process. Their
is a slight difference among financial accounting and management accounting which is
associated with assisting managers in the department to take crucial decision, whereas financial
accounting is the most targeted at offering data to external parties those are directly or indirectly
related with the company. This is process of formulating management accounts offer timely and
accurate statistical data by the managers to estimating everyday and short run decision-making.
Accounting is a systematic aspects of measuring, evaluating and communicating economic
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information to allow positive decision and judgement by the users. Every system is analyse to
deliver various managerial information those are based on essential requirement of
administration.
There are many kinds of accounting systems which includes valuable objectives, component and
functions. Likewise, every accounting systems is having some crucial elements which is use to
create standardise context as to project aims for data that is analyse and communicate
accordingly. Some of them are mentioned underneath:
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The following project is explaining crucial information about various management accounting
systems and reporting. Further, this report is evaluating benefits of using management
accounting in operational department of UKC furniture. These information are mainly helpful in
taking future investments decision to increase their productivity of an organisation
In this costing system proper allocation is needs to be performed on either activity based costing
and traditional costing method. Approximation of actual cost for a product is vital for effective
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operation of UCK furniture company. Business managers mostly relies on accounting
information which is too general and particular on cost to control their coming issues.
Inventory management system is said to be the combination of application of barcode scanners,
mobile device and other stock controlling software. This systems helps to control and overseeing
of total quantities of finished goods for sales. The primary objectives of using this accounting
system is to make accurate understanding of current stock level and under stock condition.
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It consist of all practice of accumulating information on the costs associated to a specific services
or manufacturing job activities. The data can be required to submit cost information to a client
under the contract in which costs are refunded.
Also, it is associated to evaluate the prices which a company can examine shall be more
effectively fulfil their aims such as maximising the operating gains. Formulating an alternative
through the maximum attainable performance or cost effective under a given period of time.
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These are mainly focuses on internal data that is been retain through financial accounting. It is
applied for controlling, planning and effective decision-making. These are mostly depend upon
financial statements that is comprises of profit and loss account, balance sheet and cash-flows
statements.
Moreover, they also implement other forms of accounting reports in order to
evaluate corporation information. There are various vital reporting methods of available with the
managers to record or evaluate their various accounting system. All these system and techniques
are helpful for the account managers of UCK Furniture for the formulation of various accounting
reports. These reports are prepared by the company that consists of budget, trail balance and job
cost report etc. Similarly, there is a wide significance of management reports in providing
financial and non-financial data about various function of company's. It would assists in
monitoring the overall performance of UCK furniture company. These reports are primary base
of future decision-making which is being done by the investors for the purpose of increase their
profit percentage as well as growth.
There reports are generally prepared by account officers according to their
requirements so that changes of mistakes can be minimised. Such kind of reports are needs to be
prepared on quarterly, monthly as well as weekly basis. The more accurate will be the
information the chances of getting maximum growth can be increase more. The primary motive
behind preparing these reports is to make proper analyse whether company is capable enough to
face their long and short-term obligations. If any crucial decision are needs to be done by the
managers they must look-after performance and financial condition of an organisation. For this
purpose they use to analyse various accounting reports such as:
These reports are computed every year, but some corporations establish them monthly or
quarterly. This will help in determining past and present performance of the company. These
reports assist managers in planning for upcoming future needs in manufacturing and cost
efficiency.
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The budgets of a company is said to be a detail list of every expense and revenue sources those
are related with an organisation. The administration use to attain their objectives whereas staying
within budgeted total amounts of an organization.
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