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Report 2 - Management Accounting (Reworked).docx - Unit 5:...

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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 contentsExecutive Summary……………………………………………………………………………4Introduction…………………………………………………………………………………….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…………………………………………………………………………….………113
Executive SummaryThe first part of the task concerns a paper submitted by an accountant to a productionbusiness Senior Manager outlining several management accounting frameworks andtechniques. The most important management accounting systems were addressed in depthwith a crucial assessment in the context of expense, employment costing, inventorymanagement and price optimization systems. Control accounts have since been briefed inorder to enhance the decision-making process. There have also been debates on incorporationof accounting structures in management and reporting of the operational process. In theassociation, variable and absorption costing strategies were applied by means of an acceptablemodel, which defined income declarations according to two approaches. Reasons were alsobriefed to reconcile profits according to the two approaches.Section two of the task also contains a study from the Prime Furniture operations accountant.That is engaged in a development organization and focuses primarily on the value offorecasting techniques such as gradual, zero-based and rolling budgets for the settlement offinancial problems. The level of usefulness of tools was also applied to three planninginstruments. The functions of management accounting strategies such as primary performancemetrics, benchmarks, financial governance, etc. have also been detailed in addressingfinancial problems.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. In

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

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