Management Accounting And Its Essentials

Title of the project

Management Accounting System, Techniques and Planning Tools

Learning Outcomes

LO1, LO2, LO3 and LO4

Date of Issue

Name and Date

Formative Assessment Date

Date of Submission

Format of submission

The submission of this project will be in the form of report as a MS word document. The portfolio of income statement should be in the MS excel.

The writer should use heading, bullet point and subsections as effectively and appropriately. The report should consider the Harvard referencing system as a reference.

A suggested limit of words is 3000 words, although if word limit increases you will not be penalised for that.

Project description and guidelines

Scenario and activity:

you approach to the AstraZeneca company for account clerk position. You have passed the first round of interview that is telephonic interview.

Now the second round of interview will be the report of production, report is to be sent by you to the hiring manager. This report must include a critical analysis of management accounting system & their advantages, Management Accounting reporting and their group action inside the organization. The report should also consider the method which should be used by organization   to accomplish sustainable success. particularly, an evaluation of utilization of planning tools and management accounting systems in order to react on the financial trouble. At least two illustrations should be used for comparing how organization is making changes in management accounting systems while facing   financial problems.

A third round of an interview will be an assessment round. In this round you are required to perform the test.

TEST

A manufacturing firm has been working from three years. They are using the FIFO method and marginal cost approach for evaluation of stock in the financial statements. Now the manager wants to know what changes will occur in the recorded profit if absorption costing method will be utilized instead of marginal cost approach and FIFO method. The required information is given below:

Total fixed indirect production cost is £ 65000 per year

direct Labor cost for each of the three years is £16 per unit

direct material cost for each of the three years is £12 per unit

variable expenses which varies in direct ratio to the proportion is £20 per unit

sales for the three years:  constant selling price £70 per unit

37100 units

41100 units

61100 units

production rate is

£40300 units

£48200 units

£51200 units

other overheads

selling and distribution overheads:  I year £11000, II year £11500, III year £13000

administrative overheads £15100 for every year

interest expenses: I year £1100, II year £ 1350, III year £ 1600

REQUIREMENT

prepare the income statement by considering the absorption costs and marginal cost for three years. So total 6 income statement will be required. Also, show the working of closing stock and comment on the results.

Learning Outcomes and Assessment Criteria

Pass

Merit

Distinction

LO1 Present a concept of management accounting systems

P1 Justify management

accounting and describe

various kind of

management accounting

systems.

P2 State the various

methods used for

management accounting

reporting.

M1 advantages

of management

accounting systems and

their application with the context of an organisation.

D1 state how the

management accounting

systems and management

accounting reporting is

incorporated within

organizational activity.

LO2 scope of management accounting techniques

P3 Compute cost using

cost analysis method and also prepare an income statement by using marginal and absorption costs.

M2 make financial reporting

documents by applying management accounting techniques.

D2 Make a financial

reports and analyse data

for a range of business

activities.

LO3 Justify the uses of planning tools

P4 the different types of planning tools used for budgetary control Explain their benefit and drawback  

M3 Examine the utilization of

various planning instrument

and their application for

preparing and forecasting

budgets.

D3 to solve financial problems, explain how planning tools for accounting

respond appropriately

LO4 Compare ways how the organisation will utilize management accounting to react on financial problems

P5 Similitude how organisation is adopting management accounting systems to state the financial problems.

M4 Study how the responses of financial problems will help management accounting in leading organisations for sustainable success.

D3 state how planning

tools will respond to

solve financial problems

for sustainable success.