Management Accounting 1
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name ID
Unit Number and Title Unit 5 – Management Accounting L-4
Academic Year 2020-21 Cohort April 20 Year/Block 1/3
Unit Leader Seethalakshmy Assessor Riaz Bhatti
Nagarajan
Assignment Title Management Accounting Systems & Techniques
Issue Date 20/10/2020
Submission Date (Formative) 07/12/2020
Date of Final Submission 20/12/2020
IV Name Alfred Agyeman
IV Date 19/10/2020
Learners Declaration: I certify that the work submitted for this unit is
my own and the research sources are fully acknowledged.
Learners Signature:
Date:
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and
awarding bodies’ regulations. In this context the definition and scope of
plagiarism are presented below:
Plagiarism is presenting someone’s work as your own. It includes copying
information directly from the web or books without referencing the material;
submitting joint coursework as an individual effort; copying another student’s
coursework; stealing coursework form another student and submitting it as your
own work. Suspected plagiarism will be investigated and if found to have
occurred will be dealt with according to the college procedure. (For further
details please refer to 5.j.i the Academic Misconduct policy and procedure; 5.j.ii
Academic Misconduct Student Guide; 5.n.v Plagiarism Student Handbook, all
available on HELP.)
, Management Accounting 2
Introduction
The success of organizations today largely depends on how the management interprets financial
information when making a decision. Organizations produce different accounting information about the
different departments and activities carried out by the organization. This information shows different
financial aspects of the organization ranging from profitability and costs that the business incurs in its
operations. Interpreting and understanding this information is helpful to the management as it makes
decisions. Therefore, Management accounting is vital in the running of an organization to help in
understanding the different financial information and reports of the organization to enhance decision
making. There are different management accounting systems and techniques that are available for the
organization to use in understanding the financial information of the organization. This study will seek to
evaluate different management accounting techniques and systems. Also, it will look at how organizations
are adopting these systems and techniques to solve financial problems.
Scenario 1
Management accounting can be defined as the process of preparing reports about business
operations by identifying, measuring, analyzing, interpreting, and communicating financial information to
the management to help in making short-term and long-term decisions (Drury, 2015). The reports
prepared under management accounting have to be timely to ensure that the managers can make
decisions. Thus, the reports prepared are for internal use only by the management and the employees.
Since the reports are for internal use only, they are prepared in a way that best suits the organization. This
is because there are no guidelines on how to prepare these reports.
The management reports are prepared based on the needs of the organization and are mainly
aimed at informing the management of the different aspects of the business. This helps them in making
well-informed decisions (Blackwood, 2014). The reports show the financial health of the business for a
specific period. The information contained in the reports will be from accounting records and will include
data such as; operational costs, and product profitability. There are different types of management
accounting reports. They are however classified into five major categories namely; business reports,
status reports, process reports, project portfolio reports, and analysis reports. The different management
reports prepared by organizations fall in the above categories.
One of the reports prepared in management accounting is the budget reports. A budget report is
used by management to compare the actual results on the expenditure of a business with the planned
budget (CPA and Long, 2014). The budget report will show if the organization’s expenditure levels are
too high than the budgeted levels. If the actual expenditure exceeds the budgeted expenditure, the
management will find ways to lower the expenditure to meet the budget. The budget report will show all
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name ID
Unit Number and Title Unit 5 – Management Accounting L-4
Academic Year 2020-21 Cohort April 20 Year/Block 1/3
Unit Leader Seethalakshmy Assessor Riaz Bhatti
Nagarajan
Assignment Title Management Accounting Systems & Techniques
Issue Date 20/10/2020
Submission Date (Formative) 07/12/2020
Date of Final Submission 20/12/2020
IV Name Alfred Agyeman
IV Date 19/10/2020
Learners Declaration: I certify that the work submitted for this unit is
my own and the research sources are fully acknowledged.
Learners Signature:
Date:
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and
awarding bodies’ regulations. In this context the definition and scope of
plagiarism are presented below:
Plagiarism is presenting someone’s work as your own. It includes copying
information directly from the web or books without referencing the material;
submitting joint coursework as an individual effort; copying another student’s
coursework; stealing coursework form another student and submitting it as your
own work. Suspected plagiarism will be investigated and if found to have
occurred will be dealt with according to the college procedure. (For further
details please refer to 5.j.i the Academic Misconduct policy and procedure; 5.j.ii
Academic Misconduct Student Guide; 5.n.v Plagiarism Student Handbook, all
available on HELP.)
, Management Accounting 2
Introduction
The success of organizations today largely depends on how the management interprets financial
information when making a decision. Organizations produce different accounting information about the
different departments and activities carried out by the organization. This information shows different
financial aspects of the organization ranging from profitability and costs that the business incurs in its
operations. Interpreting and understanding this information is helpful to the management as it makes
decisions. Therefore, Management accounting is vital in the running of an organization to help in
understanding the different financial information and reports of the organization to enhance decision
making. There are different management accounting systems and techniques that are available for the
organization to use in understanding the financial information of the organization. This study will seek to
evaluate different management accounting techniques and systems. Also, it will look at how organizations
are adopting these systems and techniques to solve financial problems.
Scenario 1
Management accounting can be defined as the process of preparing reports about business
operations by identifying, measuring, analyzing, interpreting, and communicating financial information to
the management to help in making short-term and long-term decisions (Drury, 2015). The reports
prepared under management accounting have to be timely to ensure that the managers can make
decisions. Thus, the reports prepared are for internal use only by the management and the employees.
Since the reports are for internal use only, they are prepared in a way that best suits the organization. This
is because there are no guidelines on how to prepare these reports.
The management reports are prepared based on the needs of the organization and are mainly
aimed at informing the management of the different aspects of the business. This helps them in making
well-informed decisions (Blackwood, 2014). The reports show the financial health of the business for a
specific period. The information contained in the reports will be from accounting records and will include
data such as; operational costs, and product profitability. There are different types of management
accounting reports. They are however classified into five major categories namely; business reports,
status reports, process reports, project portfolio reports, and analysis reports. The different management
reports prepared by organizations fall in the above categories.
One of the reports prepared in management accounting is the budget reports. A budget report is
used by management to compare the actual results on the expenditure of a business with the planned
budget (CPA and Long, 2014). The budget report will show if the organization’s expenditure levels are
too high than the budgeted levels. If the actual expenditure exceeds the budgeted expenditure, the
management will find ways to lower the expenditure to meet the budget. The budget report will show all
