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Management Accounting Techniques- UCK Furniture Group

University: The London College

  • Unit No: 305
  • Level: Undergraduate/College
  • Pages: 4 / Words 875
  • Paper Type: Assignment
  • Course Code: BBA402
  • Downloads: 662
Organization Selected : UCK Furniture Group


In present business environment requirement of Management accounting techniques and methods assist managers and accountants to sort out the complex issues and conflicts within the organisation which remain associated with analysing the financial plans and opportunities. How use of financial information and details are utilised for better advancements and achievement of tasks are defined in this report. There is a utilisation of financial resources and information for better accomplishment of tasks and projects are also considered in this context. Various financial issues and their valuable measures are analysed in terms of overcoming financial conflicts are also analysed in this report. UCK furniture group is one of the furniture manufacturing organisation in the UK.

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1.1 Cost using appropriate techniques of cost analysis to prepare an income statement

It is very important for organisations to make effective strategies and plans for development and growth of organisation. Cost accounting is more dependable aspect which is used in organisation to decelop the strategies andplans which are utilized and add up to unit. Expenses of creating items in regard to report the cost of stock on their individual arrangement, for example, monetary record and aggregate expenses of items sold. Financial information and details are mainly associated with effective utilisation of financial information and details are also analysed for effective use considered. Each cost that are utilised by organization in their day by day generation units are either specifically or in a roundabout way have effects on general productivity of an association. Cost is for the most part said that estimation of cash caused to get something. Get assignment writing services online

Costing is an effective techniques of accounting which would be useful for the purpose of assembling and recording every crucial elements of cost those are being incurred for the purpose of attaining a specific objectives. This would be helpful in providing proper analysis of cost behaviour, operational and capital budgeting, standard costing and many more. There are different costing methods which will be useful in analysing total cost for UCK group. Some of them are explained as follows:

Variable cost and fixed cost: These are said to be that costs which would remain unchanged in their total volume changes but in some time. it get varies with increase in alteration of total costs derives. While in case of variable costs they are continuously changes with production of goods and services. Some valuable examples are fuel and repair expenses.

visit this sample:-  Concept of Financial Accounting

Sales (35per units) 315000 402500
Cost of Production (12+8+5+1.82) 295020 254790
Gross Profit 19980 147710
Fixed and variable cost:
variable sales overheads (1 per unit) 9000 11500
Fixed selling cost 2000 2000
Total costs 11000 13500

Computing net profit by using marginal costing

PARTICULARS January February
Sales (35 per unit) 315000 402500
Cost of Production (12+8+5) 275000 237500
variable selling overheads (1 per unit) 11000 9500
variable cost 286000 247000
Contribution 29000 155500
fixed manufacturing overheads 20000 20000
Fixed Admin & selling cost 2000 2000
total fixed costs 22000 22000


3.1 Compare how organisation could use management accounting to respond financial problems

Ratios Formula UCK furnitures UCK woodworks
ROCE (Return on capital employed): Operating profit/Capital employed*100 5890+3600/23100+31930*100 =9490/55030*100 =17.24% 6955/81230*100 =8.56%
Operating profit margin Operating profit / sales *100 9490/13000+24900*100 =25.03% 6955/81230*100 =8.56%
Assets turnover Revenue / Net assets 13000+24900/23106+31930 =0.68 times 8150/81230 =0.100 times
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