Question : 'The objective of this report is enhance knowledge of learner in the context of accounting practices that can assist in preparing a financial report for UCK furniture. This report will be going to consider some major aspects of accounting practices as: Provide an application of management accounting techniques. Discuss the planning tools that can be used in management accounting practices within UCK furniture. Provide a comparison that determine how management accounting can respond to financial problems of UCK furniture. ' Answer : INTRODUCTION TASK 1 1.2 Range of management accounting techniques There are various techniques of management accounting which are helpful in carrying out to enhance overall financial position. Cash flow statement is one of the main technique by which business is able to analyse cash position in the best possible manner. Moreover, there are various activties such as operating, investing and financing activities which outlines whether adequate cash balance is available or not (Cooper, Ezzamel and Qu, 2017). Another technique is cost variance which is used to analyse difference between budgeted and actual costs. Thus, it is an essential technique in generating financial reporting documents. On the other hand, revaluation accounting is helpful in order to adjust current market and book value of asset in effectual manner. Hence, this management accounting techniques are helpful for UCK Furniture to enhance financial health in effective way. You Share Your Assignment Ideas We write it for you! Most Affordable Assignment Service Any Subject, Any Format, Any Deadline Order Now View Samples You Share Your Assignment Ideas We write it for you! Most Affordable Assignment Service Any Subject, Any Format, Any Deadline Order Now View Samples 1.3 Interpretation of both absorption and marginal costing and merits and demerits Marginal costing Marginal costing is a technique of management accounting wherein data related to cost such as variable and fixed costs are provided to personnels for effective decision-making. The effect on profit can be judged when there is change in volume of output. In marginal costing, firm may be able to analyse cost of production and as a result, higher production can be achieved by reducing unnecessary costs. Advantages 1. It is advantageous as valuation of stock is correctly ascertained and no illogical carry forward of the same is made in proportion of fixed overheads of current year. 2. This method is helpful in short-term planning by effectively taking break-even and profitability aspect (Kolb and Kolb, 2011). Disadvantages 1. It is not easier to bifurcate variable and fixed costs and as a result, conclusions drawn from the same are misleading. 2. Another disadvantage of marginal costing is that long-term planning cannot be possible as it is useful only in short-term planning. Absorption costing This costing is effective as it computes cost of particular product by considering indirect expenses and direct costs. In simpler words, manufacturing expenses are effectively absorbed by units produced. Advantages 1. It is advantageous as fixed costs are taken into account and is helpful in determining adequate pricing policy in effective way (Agarwal. 2018). 2. It is useful in preparation of external reports and correct valuation of stock can be made. Disadvantages 1. Absorption costing do not classify fixed costs whether it relates to manufacturing or administration. 2. It is not useful in controlling costs as allocation of indirect expenses is a difficult task. Need Accounting assignment help in Australia from professional experts to score higher grades. Contact us to get the best assignment writers for your assignments. have a question or Need assistance CALL US +61 364132102 Request a CallbackOrder Now TASK 2 2.1 Ascertaining the advantages and disadvantages of planning tools used in budgetary control The advantage of a planning tool in management accounting is that it brings the clear understanding and analysis over the profitability of the prosed plans of business. However, there will be various techniques winch will be effective and brings better budgetary control. Such as: Net present value: This is the technique which helps in bringing the present value of the future cash flows. Therefore, this estimation will be indicative and helpful as to bring the most adequate and appropriate determination of the analysis that the projected plan will be helpful to the firm in bringing the most appropriate and reliable information. This is the technique which in turn will be effective and helpful to the firm in terms of analysing the profitability over the analysed data set. Additionally, it can be said that the implication of such techniques will be beneficial for the business as to have suitable gains and income bring forth. Moreover, it will be helpful to UCK Furniture in terms of implicating such techniques into operational practices on the basis of its advantages and disadvantages: (Buy assignment at the lowest price) You may also like to read: Different Types Of Management Accounting Techniques UPTO50% Avail The Benefit Today! To View this & another 50000+ free Enter Email Submit
INTRODUCTION Accounting and society means the practice of presenting and communicating environmental and the social impacts that an organization faces while conducting its business operations and in achieving its goals and objectives. It is seen as the leading international concern that describes
INTRODUCTION The term accounting and finance play a significant role in aspect of proper management of monetary resources of companies. Accounting can be defined as a way of recording financial transactions in systematic manner for a particular time period (Cleary and Quinn, 2016). If companies
INTRODUCTION Management accounting is recognised as managerial accounting it is an essential management accounting technique that helps in consolidating the essential information for better decision making and strategic planning process (Dekker, 2016). This report presents the meaning of
INTRODUCTION Management accounting refers to the process of collecting accounting information, analysing it, preparation of financial reports and then taking day-to-day decisions. This helps in better control over the performance and functions of management. In a simpler form, management
INTRODUCTION Advanced corporate accounting is the branch that is implied a general accounting principle that helps the company in managing stability in business functions. Employee benefits are part of Advanced corporate accounting and therefore the presentation will outline the benefits of
INTRODUCTION The management accounting is important part of every organization to improve their decision-making. They are mainly focused to analyse the business need according to the requirement of client or customer. With the help of this management accounting to achieve their sustainable goals
INTRODUCTION Financial accounting is a form of accounting in which the accountants prepare the financial statements using the accounting standards formulated by the regulatory bodies. Financial accounting process ensures that the financial statements prepared by the managers reflect the accurate
INTRODUCTION In every sector, management accounting is that which is required to be prepared with the use of statistical data for making an proper decision and strategies in firm by the managing directors and also has to made day to day transaction in better way and also lead to managerial
INTRODUCTION Financial accounting is a part of managerial accounting. It not only depends upon managing the financial accounts and operating the financial activities but also align the functional department of organisation. There are some financial data and information are defined in respect of
INTRODUCTION Nowadays, it has been a huge issue that management is not able to analyse their financial transaction in proper manner. They want an effective system which can provide them better techniques to record all their financial transactions into their respective format in more right ways.
