Order Assignments Now Get Upto 50% Off Get UPTO 50% OFF on Your 1st Assignment. Redeem Code: NEWCUST25 Order Now

Use of Planning Tools in Management Accounting - UCK Group Plc

University: The London College

  • Unit No: HNBS305
  • Level: Undergraduate/College
  • Pages: 12 / Words 2958
  • Paper Type: Assignment
  • Course Code: M/508/0494
  • Downloads: 753
Organization Selected : UCK Group Plc


This particular part of management accounting provides crucial information about all essential costing method that is used for the purpose of calculating the net profit of UCK Group Plc. It is necessary to record the financial transactions in their respective set format so that maximum chances of getting valuable outcomes can be enhanced. This project report is entirely targeted merits and demerits of using planning tools for controlling the budget are explained under this report. The purpose of using cash budgets is analysed properly in this specific project module (Tessier, and Otley, 2012). All kinds of financial issues that are present in the cited company are evaluated by using certain ratios to determine the current financial position during the period of time.


1.1: Use of appropriate techniques of cost analysis to formulate income statement

Cost is an essential aspect for an organisation. It is used to determine total cost UCK group Plc is investing for the purpose of producing products and services during the time. Cost is related either directly or indirectly with production process. It seems to be value of amount which is given to get something. The role of project managers is make use appropriate costs that are essential for examine overall amount on production of one units of products for the company. They required regulating planning into order to manage and control their additional cost which enhanced efficiency as well as profitability at the same time. It has been identified that cost is affecting manufacturing of furniture and other goods of UCK group plc. They motive behind using effective costing techniques is to make valuable decision to manage their financial operation (Van der Stede, 2015). By the help of this, whole productivity can be analysing in order to increase growth and stability for the company during the period of time. There are different types of costing techniques that are essential in analysing current management position and other essential aspects those are related presented with UCK. Some crucial techniques are discussed underneath:

Absorption costing: According to this particular costing method which is applicable at the time of production of products. It consists of both variable and fixed cost because of this it is said to be full costing methods. In accordance with making vital decision for increasing profitability for the company it does not taken as that much effective. But for calculating net profit for UCK group plc they need to analyse gross profit generated during the time.

Marginal costing: It refers as one of the most effective costing techniques which is held responsible in case of additional production of a product. It use to considers only variable cost and fixed cost at not utilised during calculation of contribution per units. In respect of analysing efficiency for the company they need to take into account as more reliable and accurate sources of method.




Sales (35per units)





Cost of Production (12+8+5+1.82)



Gross Profit





Fixed and variable cost:


variable sales overheads (1 per unit)



Fixed selling cost



Total costs






Computing net profit by using marginal costing




Sales (35 per unit)





Cost of Production (12+8+5)



variable selling overheads (1 per unit)



variable cost








fixed manufacturing overheads



Fixed Admin & selling cost



total fixed costs






1.2: Wide range of management accounting techniques

In every business, whether related with small business or large organisation they need to make use of appropriate techniques which is effective enough to increase overall growth and stability in coming time. This has been determine that without using right kind of accounting techniques a company would not be able to reach at their set destination in allotted period of time. In accordance with this, there are certain other specific aspects those are essential for measuring the performance of UCK group plc by the use of appropriate accounting techniques (JOSHI and et. al., 2011). This will analyse more effective in relation to evaluate total profitability with the use proper allocation of resources. On the basis of collected information for financial reporting auditor need to analyse performance of the company. There are various techniques from which accounting information can be collected. Such as:

Financial planning: It is consider as one of the primary tools of deciding in advance regarding the financial events for the concern to attain primary aims of an organisation. It consists of both short and long term objectives for the company.

Historical cost: As per this cost accounting need to provide previous data to an organisation which is associate with each job, procedure and department so that to make comparison of present position during the time.

A+ Grades @Affordable Prices! We deliver all academic papers from dissertations & assignments to thesis, & case studies. 5000+ satisfied students, you could be next! Place Your Order Now! Order Now

1.3: Interpretation of draw results from incomes statements

In order to analyse the performance of the company, it is necessary to make use of data in specific manner so that better outcomes can be attain effectively. It has been determine that two of the primary costing techniques to calculate annual net profit and loss of the company. The results are found fluctuating by using either of the methods. Those techniques will be taken into account which would provide more effective outcomes for the company in terms of net gains. It has been seen that net profit incur by company from January and February sales they are able to earn maximum profit from using absorption costing. The marginal costing is not that much effective in respect to absorption costing. The major outcomes are analyse by the help of increase overall growth and efficiency during the period of time. The main impacts are seen because of the use of fixed cost treatment. With the use of these two methods the chances of getting more reliable and accurate results can be more (Amoako, 2013).


2.1: Merits and demerits of using planning tools

Planning is happens to be an essential aspect for an organisation to attain their aims and objective in more specific manner. This will assist in control various types of budgets in evaluating performance during the time. It is necessary to calculate on regular basis to make use of standard to increase overall stability and growth for the company. This seems to be effectively related with internal tools and techniques those are useful in respect to manage and control total risk factors that are exist in an organisation. Budget is said to be prediction of future cost and expenses those are going to incur by the company. There are various types of planning tools that are effective for an organisation. Some of them are:

Forecasting tools: As per this tools and techniques, manager can easily be able to examine future activities on regular basis. It would be implemented by using past and previous information for the purpose of evaluating performance during the time.

Advantage: The main objective of using these particular techniques is to analyse future costs and expenses a company is going to incurred (Hilton and Platt, 2013).

Disadvantage: It is total based one estimation which wills leads to bring less chance of growth for the company.

Contingency tools: It is an important planning tools that can be used to measure overall risks that are present in an organisation. This seems to be effective enough to deal with any kind of situations that are difficult to handle.

Advantage: As per this specific techniques which a company can use to determine their total drawbacks before making any important decision related with production.

Disadvantage: This seems to be more difficult to evaluated condition without having suitable plans. It has been seen so because of qualitative nature.

2.2: Assessment of expenses for July and August

In accordance with analysing expenses that UCK group plc has incurred during the period of July and August are discussed underneath:

(Total expenditure of high activity – Expenditure from low activity)

Total cost=

(Highest activity per hour spend – Lower hour spend)

Total expenditure (Per units): (9820-7410) / 795-505)=8.31

Total expenses for July:

= 650*8.31= 5401.5

For August:

= 750*8.31= 6232.5

Students also like to read: Management and Leadership Characteristics

2.3: Purpose of using cash budget

It is necessary to make use of budgets to analyse total cash flows incur during the period of time. It is necessary for manager to make use of data in reliable and accurate manner so that maximum chances of generating positive outcomes can be attained in more easily. This seems to be associated with forecasting of income and expenditure as primary motive for the company (Parker, 2012). The primary motive for the company to increase efficiency as well as productivity through controlling extra costs those are affecting routine of an organisation. It is the total sum of amount which is uses through proper allocation of main aims that are being set for the coming year. Cash budgets are valuable budgets that is related with analyse total inflows and outflows that are incurred during an specific perio

Download Full Sample
Cite This Work To export references to this Sample, select the desired referencing style below:
Global Assignment Help.(2024) Use of Planning Tools in Management Accounting - UCK Group Plc Retrieved from: https://www.globalassignmenthelp.com/free-samples/accounting/m5080494-use-of-planning-tools-in-management-accounting-uck-group
Copy to Clipboard
Use of Planning Tools in Management Accounting - UCK Group Plc Global Assignment Help ,(2024),https://www.globalassignmenthelp.com/free-samples/accounting/m5080494-use-of-planning-tools-in-management-accounting-uck-group
Copy to Clipboard
Global Assignment Help (2024) Use of Planning Tools in Management Accounting - UCK Group Plc[Online]. Retrieved from: https://www.globalassignmenthelp.com/free-samples/accounting/m5080494-use-of-planning-tools-in-management-accounting-uck-group
Copy to Clipboard
Global Assignment Help Use of Planning Tools in Management Accounting - UCK Group Plc. (Global Assignment Help, 2024) https://www.globalassignmenthelp.com/free-samples/accounting/m5080494-use-of-planning-tools-in-management-accounting-uck-group
Copy to Clipboard
Global Assignment Help Use of Planning Tools in Management Accounting - UCK Group Plc. [Internet]. Global Assignment Help.(2024), Retrieved from: https://www.globalassignmenthelp.com/free-samples/accounting/m5080494-use-of-planning-tools-in-management-accounting-uck-group
Copy to Clipboard
Often times, students feel unable to work on assignments and think, “Who will do my assignment?” By providing "Sample" on various subjects, we are trying to help them understand all the intricacies of writing. We have the most qualified and skilled assignment writers who can provide the best assignment writing services, essay writing services, dissertation writing services, and more at the most affordable rates. Place your order now for surprising discounts.
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD 7.13

    Delivered on-time or your money back

    100+ Qualified Writers

    For Best Accounting Assignment Help

    View All Writers
    FREE Tools

    To Make Your Work Original

    • tools Paraphrasing Tool

      Easy to Use Paraphrasing Tool to Simplify Complex Academic Writing

      Check Paraphrasing
    • tools Plagiarism Checker

      Check your work against plagiarism & get a free Plagiarism report!

      Check Plagiarism
    • tools Reference Generator

      Get citations & references in your document in the desired style!

      Generate References
    • tools Grammar Checker Tool

      Make your content free of errors in just a few clicks for free!

      Grammar Checker
    • tools Essay Typer

      Generate plagiarism-free essays as per your topic's requirement!

      Essay Typer
    • Dissertation Outline Generator

      Get Structured Outline by Professionals for Your Dissertation

      Check Dissertation
    • Thesis Statement Generator

      Create the perfect thesis statement in just few minutes!

      Generate Thesis
    GAH whatsapp