Management Accounting Report: INWIDO Case Study and Analysis

This report provides a comprehensive overview of management accounting, encompassing its principles, various accounting systems (including cost-accounting, inventory management, and job-costing systems), and the functions of a management accountant. It explores the role of management accounting systems in compiling and designing financial information, and the different types of reports such as performance, inventory management, and accounts receivable reports. The report delves into various costing techniques, including cost-volume-profit analysis, flexible budgeting, cost variances, absorption costing, and marginal costing. It includes income statements prepared using both marginal and absorption costing methods, along with a case study of INWIDO, a window and door supplier. Furthermore, the report presents financial statements (income statement and balance sheet) and concludes with a ratio analysis focusing on gross profit and liquidity ratios for the years 2016, 2017, and 2018. The analysis is presented in a PowerPoint format for easy understanding.

Management Accounting

Introduction
Management accounting principle
Types of accounting system
Function of management accounting
Role of management accounting system
Types of report
Various types of costing techniques
Financial statement
Income statement
Conclusion
Reference
Table of Content

Introduction
Management accounting principle
Types of accounting system
Function of management accounting
Role of management accounting system
Types of report
Various types of costing techniques
Financial statement
Income statement
Conclusion
Reference
Table of Content

Introduction
 Management accounting is defined as the process of forecasting and
decision making that support to run business in effective manner.
 It is the method of preparing annual reports and statements that help to
give accurate and timely financial information to internal manager of
company
 Meaningful decision are taken for the improvement of company
performance.

Management accounting Principle.
 Principle of management accounting:
 Principle of exception
 Principle of Inflation
 Principle of utility
 Principle of integration

Types of management accounting system
Cost-accounting systems
Inventory management systems
Job-costing systems
Price-optimizing systems

Function of management accountant
 Compiling financial statements
 Performance financial calculation
 Assisting with the preparation of budgets
 Giving Financial Advise

Role of management accounting system
 Designing and compiling: It is described as accounting substance,
evidence and other information of foregone time that should be planned
and merged to meet the necessitate of specific business concern and
fiscal problem.
 Control at sources accounting: Expenditure are termed as additional
cost that is essential controlled that have been appeared during an
accounting year.

Types of Report
 Performance report: It is the part of communications management
plan. Basically its related to work performance, analyzing it.
Inventory Management Report: It is essential to manage inventory stock
as accurately and optimally. it helps to allow the discover trends,
identify weaknesses and strengths, fill the gaps and efficiencies.
Account Receivable Report: An accounts receivable report includes lists
of unpaid customer invoices and unused credit memos by date range.
The aging report is the primary tool used by collections personnel to

Various types of costing techniques
 Following are the major costing techniques commonly used to
determine cost and efficiency of production for the company as follows:
 Cost volume profit (CVP):
 Flexible budgeting:

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Cost variances:
Absorption costing:
Marginal costing:

Income statement (Marginal costing method)
About Company: INWIDO is the largest supplier company that is dealing in windows and
designer doors in Europe. It focuses on customer's demands and expectation and provide
that kind of products which customers wants. This owns and develops companies that
helps to improve people's indoor lives by providing huge number of designer products and
services. Manager of INWIDO company focuses on improvement in people life at home
and increase profit margins by providing products at reasonable prices.
 Working 1: Calculate variable production cost £
 Direct material cost 8
 Direct labour cost 5
 Variable production O/h 2
 Variable production cost 15
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 Working 2: Calculate value of inventory and production
 Opening inventory Production Closing inventory