Analysis of Budget, Variance, and Ratio in Business Decision-Making

Desklib provides past papers and solved assignments for students. This presentation explores management accounting techniques for effective business decisions.

Management
Accounting information

Table of Content
• Introduction
• Management accounting information
• Different types of management accounting techniques
• Analysis of the budget
• Analysis of the variance
• Decision making tool in business
• Forecasting of the budget
• Ratios analysis
• Decision making method advantages
• Conclusion
• References

Introduction
• In an organisation, the use of management accounting
techniques helps the business in preparing the annual report.
• To make adequate decision for the business the presentation
will use the different methods of management accounting.
• The presentation will also include the different decision making
methods that will help the business in sustaining better
financial position in the market.

Management accounting
information
• Management accounting helps in generating plans, organise, design,
functions various role in an organisation, as it comprises both non-financial
and financial factors.
• It can be use for computing the accurate data in the financial report.

Different types of
management accounting
techniques
• Profit and loss statements
• Analysis of budget
• Variance analysis
• Business forecasting
• Management information system

Analysis of the budget
• A pre calculated cost determined by a company.
• The main benefit of the budget, it helps in analysing the future
expected expenses and revenue.
• The budget is made by using the previous year information
related to the sales, revenue, expenses etc.

Variance analysis
• It helps in computing the deviations points in the business
operations which can be analyse by comparing the actual
outcome with budgeted.
• The variance is used in a business to control unrequired
operating activities in an organisation

Decision making tools in
business
• Forecasting
• Increment in capital
• Ratios
• Investment
• Trend comparison

Business forecasting
• It is one of the effective method for making adequate decision.
• It represents the expected scenario of the future.
• By analyzing the previous data assumptions are made for the
future.

Analysis of ratio
• Gearing ratio
• Solvency ratio
• Profitability ratio
• Liquidity ratio
• Performance ratio
• Activity ratio
• Inventory ratio

Benefits of decision making
tool
• The utilisation of decision-making technique helps in the
organisation helps in getting money related data with respect
to a business activity which helps in expanding the execution.
• It helps in improving the efficiency and deals which additionally
upgrades the productivity of the business.
• This instrument helps in giving satisfactory data which helps in
settling on the choice.

Conclusion
• The above brief infers that administration bookkeeping is an
essential strategy for the organization's the same old thing.
• It benefits the organisation in giving legitimate choice and
satisfactory data.
• It helps in giving non-financial and financial data of the
business.