Management Accounting Assignment -

Assignment Topic - Management Accounting Principles and Effective Planning Tools for Managing Accounts

Aim of this assignment -

The overall aim of this unit is to introduce the fundamentals of management accounting, which apply to the wider business environment and the organisations, which operate within that environment. Students will explore how management accounting uses financial data to aid planning decisions, and the monitoring and control of finance within organisations. On successful completion of this unit students will be in a position to present financial statements in a workplace context and be able to assist senior colleagues with financial business planning. In addition, students will have the fundamental knowledge and skills to progress onto a higher level of study.

By the end of this unit students will be able to:

• Demonstrate an understanding of management accounting systems.
• Apply a range of management accounting techniques.

Task 1 - You are a Junior Management Accountant for a medium-sized enterprise in the manufacturing sector and, in an effort to promote understanding between different departments in the organisation, you and your colleagues have been asked by your line manager to prepare a report on the role and function of the management accounts department, covering the management accounting systems operating in the organisation as well as the range of techniques used. This assignment has two parts:

Part A: Produce a portfolio of completed calculations for financial statements, including income statements using variable costing.

ABC Ltd has prepared the following data for a new product to be launched in January:

Standard Costs per unit:

Direct Material £10.40

Direct Labour £18.20

Variable Production Overhead £7.80

Standard Variable Cost £36.40

Other Data:

Fixed Production Overhead £975,000 per month

Selling price £67.60 Per unit

Budgetd production Data:

Opening stock Nil

Production 190,000 unit

Sales 160,000 unit

Closing stock 30,000 units

Required: Prepare budgeted profit statement for January on the basis of:

a) Marginal costing

b) Total absorption costing

Part B: The report includes supporting calculations from a portfolio of completed financial statements, plus:

1. An explanation of the principles of management accounting.

2. The role of management accounting and management accounting systems.

3. The use of techniques and methods used in management accounting by presenting calculations for an income statement using variable costings.

4. Explanation of how management accounting is integrated within an organisation.

5. The benefits of the function to the organisation.

Assignment Topic - Application of Management Accounting principles and effective use of management tools.

Aim of this assignment -

The overall aim of this unit is to introduce the fundamentals of management accounting, which apply to the wider business environment and the organisations, which operate within that environment. Students will explore how management accounting uses financial data to aid planning decisions, and the monitoring and control of finance within organisations. On successful completion of this unit students will be in a position to present financial statements in a workplace context and be able to assist senior colleagues with financial business planning. In addition, students will have the fundamental knowledge and skills to progress onto a higher level of study.

By the end of this unit students will be able to:

• Explain the use of planning tools used in management accounting.
• Compare ways in which organisations could use management accounting to respond to financial problems.

As a newly-qualified Management Accountant, you have been asked by your line manager to produce a report which analyses the organisation's use of planning tools to ensure financial stability and performance as well as ways in which management accounting has played a key role in preventing and solving financial problems.

This assignment is in the form of a two-part individual management report:

Part A: Compare and contrast three planning tools used in management accounting, indicating how effective you judge each to be and why. Your judgements should be supported by evidence.

Part B: Using specific case studies as examples compare ways in which management accounting is applied, the effectiveness of management accounting in dealing with financial problems and preventing financial problems in organisations.

Attachment:- Assignment Files.rar