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Unit 5: Management AccountingStudent: Vanya OvcharovaStudent N: CCL-20-249Group: May20B1
Learner Assessment Submission and DeclarationWhen submitting evidence for assessment, you must sign a declaration confirmingthat the work is your own.Learnername:Vanya Koeva OvcharovaAssessorname:Issue date:14/9/2020Submissiondate:13/12/2020Submittedon:12/12/2020Programme:BTEC Higher National Certificate in BusinessUnit:Unit 5 – Management AccountingLearner signature:Vanya OvcharovaDate:12/12/20202
Table of contentsIntroduction…………………………………………………………………………………….4LO2……………………………………………………………………………………………...P3 Calculation of Costs under Absorption and Marginal Costing………………………….….4LO3……………………………………………………………………………………………P4. Use of Planning Tools for Budgetary Control……………………………………….…….8LO4…………………………………………………………………………..............................P5. Comparison of Management Accounting systems to respond to FinancialProblems……………………………………………………………………………………….9Conclusion………………………………………………………………………….……….. 10References…………………………………………………………………………….………103
IntroductionManagement accounting is also known as managerial accounting and can be characterized asa mechanism for financial reports and resources for decision makers. Management accountingis used by the company's internal team only and is the only distinction between it andfinancial accounting. Financial information and records, such as the invoice, are thenexchanged with the executive committee of the company by financial management. Thedocument is prepared by the newly assigned management accountant of Prime Furniture. Inthis report the focus will be on how important planning tools are as well as the role ofmanagement accountant in solving financial problems.LO2P3. Calculating of Costs under Absorption and Managerial CostingCost ascertainment and control – the method of estimating costs on the basis of particularfacts. Historical costs are thus estimated, and cost estimates and cost predictions are expectedcost calculations. This means that Prime Furniture can help to further and deeper analysis thebusiness costing using marginal and absorption approaches.Normal costingasserts actual costs for the goods and labour components of a company (Atrill& McLaney, 2015). For instance, for the production of direct resources, labour and productionoverheads for leasing, electricity etc.Standard costinginvolves combining actual costs with the pre-arranged standard costs,allowing management of Prime Furniture to examine factors and take corrective measures.The actual cost for a good in Prime Furniture could be £5000, so the usual cost with anundesirable gap of £1000 would be £2500.Activity based costing (ABB)assigns overhead output costs for the commodity based ondrivers of activity. For example, component configuration costs for the output of a givenproduct in Prime Furniture can be delegated on the basis of different settings per batch as perABB.

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Term
Spring
Professor
N/A
Tags
Cost Accounting, Prime Furniture

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