This report provides a comprehensive analysis of management accounting principles and their application within Tech Ltd, a company specializing in mobile phone chargers and other gadgets. The report begins by defining management accounting and differentiating it from financial accounting, highlighting its role in planning, decision-making, and control. It explores various management accounting systems, including cost accounting, inventory management, and job costing, detailing their advantages and disadvantages. The report then delves into the presentation of financial information, discussing different types of managerial accounting reports and the importance of clear communication. Task 2 focuses on preparing financial statements using both marginal and absorption costing methods, providing a comparative analysis of their impact on profit calculation and offering recommendations for Tech Ltd. The report also examines various types of budgets and their advantages and disadvantages and defines the budget preparation process. Finally, it discusses the significance of budgeting for planning and control purposes and explores how the balanced scorecard technique aids in responding to financial problems. The report concludes by summarizing the key findings and recommendations, emphasizing the practical application of management accounting tools for effective decision-making within Tech Ltd.
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