Management Accounting Assignment Sample
- Course Code: MC- 105
- Course Title: Management Accounting Assignment Sample
- University: Nelson college london
- Country: UK
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 have been asked by your line manager to prepare a report on the role and function of the Management Accounting department. The report should cover the management accounting system operating in the organization as well as the range of techniques used.
The report should include supporting calculations from the information provided below and the following
1. Explain why Management Accounting is important in the decision-making process for improving the performance of the company.
2. Explain the different types of management accounting systems used for management accounting reporting and their integration in the context of business (a minimum of three types of these management accounting systems is required and also an example of the type of business it intends to serve).
3. Critically evaluate the benefits of these types of management accounting systems that you have identified in part 2 above and the management accounting reporting is integrated within the organizational processes. Appropriate EXAMPLE should be used to support your evaluation.
a) Using the Absorption and Variable Costing techniques, prepare and present two separate Statements of Profit or Loss (income statements) based on the scenario given below for each ofthe two quarters. You should show clearly how the costs were calculated under each of the costing techniques.
b)Explain with supportive calculations, why the profits under each technique are different.
c)Produce a reconciled statement of profit or loss showing the reconciled profits for the two techniques used previously.
As a newly-qualified Management Accountant for Nero Ltd, 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.
A budget is a forecast of what is expected to happen in business during the next year.' (Atrill and McLaney, 2015)Compare and contrast any three planning tools used in management accounting, clearly indicating their levels of effectiveness and the reasons for their differences in the level of effectiveness. You should also analyze and evaluate how the use of planning tools for accounting respond appropriately to solving financial problems to lead organizations to sustainable success. Your judgments should be supported by appropriate examples.
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 organizations. Analyze how, in responding to these financial problems, management accounting can lead organizations to sustainable success.