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Advantages & Disadvantages of Planning Tools

Brief :

LO3 Discuss the use of planning tools used in management accounting.

LO4 Compare ways in which company could implement management accounting in order to respond to financial problems.

As a new management accountant, you have been asked by line manager to make a report which analysis the organisation use of planning tools in order to make sure financial stability and the performance with the ways in which management accounting has played a prime role I solving financial problems. This assignment is in the form of individual management report.

Assessment Criteria

P4 Evaluate benefits and limitations of different types of planning tools which is used for budgetary control. (budgets, fixed budgets, flexible budgets, incremental budgets, Zero based budgets and variance analysis)

M3 Explain the use of types of tools and their implementation for preparing forecasting budgets.

P5 Explain how organisation adopt management accounting systems in order to respond financial problems. (How management accounting evolved over the decades, how organisation detects financial problems and how real-world organisation adapting management accounting systems in context to solve financial problems.

M4 Evaluate how to respond to the financial problems and how management accounting cam lead organisation to sustainable success.

D3 Explain how planning tool for accounting respond relevantly to solve financial problems in order to make organisation sustainable.

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